LABOUR DIVIDED.

Auckland Star, Volume LXV, Issue 57, 8 March 1934, Page 7

LABOUR DIVIDED.

NEW CUNARD LINER. North Atlantic Shipping Bill Debated. FIRST READING CARRIED. (British Official Wireless.) (Received 1.30 p.m.) RUGBY, March 7. The North Atlantic Shipping Bill, which empowers the Treasury to advance money to the Cunard Company for the construction of one or moro large vessels for the North Atlantic shipping trade, was debated in the House of Commons. Mr. Hore-Belislia, Financial Secretary to the 'J' reasury, moving the second reading, recalled that in December, 1030, the Cunard Company decided to lay down a ship of a size and speed unlikely to lie excelled by any other in existence or in contemplation. It was to be 75,000 tons gross and of such speed as to maintain a programme of fortnightly sailings! throughout the year which no other service could at present provide. The laying down of the ship meant an expenditure of £4,000,000, and the employment for three years of 3000 shipbuilding hands, in addition to employment in the large diversity of trades j engaged in making machinery and plant. It was with general consternation that, a year later, the public learned that crcdit difficulties had arisen. The building was abandoned, and the Government was pressed to go to the assistance of the company. The precedent of 1004 when £2,600,000 was advanced to the same company j by the Treasury for the construction of tho Lusitania and Mauretania was recalled. Policy of the Big Ship. Mr. Hore-Belislia said that that generation was told that the policy of tho big ship was misconceived, that the finance was uneconomic, and that a loss to tho taxpayer was inevitable, but the policy of the big ship had prospered, the finance proved to he well secured, and the taxpayers had lost nothing. Interest had been duly met and the capital refunded in full. The Chancellor of tho Exchequer, Mr. Neville Chamberlain, had examined the plea for succour and came to the conclusion that if the problem was the retention of the ascendancy of Britain on the Atlantic, the ruinous competition between British firms should be eliminated, and all resources and experience concentrated in a single channel. He, therefore, made it clear that financial assistance could only be forthcoming on the effective fusion of the North Atlantic shipping interests of the two rival companies. That end had been achieved. The merger company would be in possession of £3,000,000, payable as required, for the completion of the liner 534 and £1,500,000 payable, if required, for working capital. Construction of Other Vessels. Whatever was required would be at the disposal of the merger company in order that it might do business without apprehension of embarrassment. The Government did not withhold the possibility of assistance in the construction of a further ship or ships. The company could not maintain the service required without such addition to the fleet, and the company would never have been formed except upon such an understanding. In respect of this ship costing £4,500,000 the Government was to have a prior charge of £3,500,000. In addition it had a charge on the assets of the Cunard Company of £1,000,000, and a charge on any sum allocated by the merger company to depredation of the 534. The prosperity of the company, however, was the best and only safeguard, and the Government was sparing nothing to assure it. Labour Ranks Divided. Despite the persistent advocacy of Mr. D. Kirkwood (Lab., Dumbarton), and other Labour members for Government assistance to complete the building of the liner, Mr. Morgan Jones (Lab., Glamorgan) submitted an amendment on behalf of Labour which, while welcoming tho resumption of work on the vessel, objected to the vote of public money without a guarantee of repayment and control over it, or a share in the profits. Without insisting on nationalisation of the shipping industry the amendment demanded an assurance that the interest would be paid and the loan refunded. The bill was read a second tfme by 194 votes to 30.