NO NEW LINERS FOR PACIFIC

Press, Volume LXXIV, Issue 22460, 22 July 1938, Page 13

NO NEW LINERS FOR PACIFIC

• ♦ COST OF BUILDING TOO GREAT REPORTED DECISION OF LONDON CONFERENCE (USI'IKD PHK&S ASSOCIATION —COI'YIIIGHT.) (Received July 21, 2 p.m.) LONDON, July 20. It is understood that at the conference between Sir Edward Beatty, chairman of Canadian Pacific Steamships, Ltd., and representatives of the Government, it was decided, because of the enormous increase in the cost, not to proceed with the building of .two new Pacific liners. The question will be reconsidered later.

Early this month it was announced from Ottawa that, at a building cost of 20,000,000 dollars, two new larger and faster ships were to enter the service between Canada, Australia, and New Zealand within two years. They would have a speed of 22 knots, enabling them to compete with the Matson service to San Francisco, with fortnightly sailings from Vancouver.

The original cost was about £2,000,000, but there has been such a rise in ship-building costs after the scheme was originally mooted that, if the Governments had decided to adhere to their intentions, the figure would be in the neighbourhood of £5,000,000.

DECISION NO SURPRISE TO MR SAVAGE

"CANNOT AFFORD TO BE TOO HASTY"

[From Our Parliamentary Reporter.3

WELLINGTON, July 21

"Frankly, I have never expected anything else," said the Prime Minister (the Rt. Hon. M. J. Savage), when he was asked to comment this evening on the cable message from London stating that, because of the high costs, the building of two new British liners for the Pacific service was likely to be postponed indefinitely.

It would be ridiculous, said Mr Savage, to attempt to build ships at prohibitive costs. At present everything that was required for shipbuilding was being used at full pressure by the British Government in the development of its rearmament programme. There was apparently a shortage of skilled labour and of material, and that was bound to have its effect on costs.

"In the circumstances, we cannot afford to be too hasty," said the Prime Minister. "After all, it may not be too much to say that the defence of Britain is at least as important as the provision of shipping services across the Pacific. As far as New Zealand is concerned, however, I can give an assurance that the building of the two new ships will not be forgotten. We will keep the matter open for discussion and the building of the new ships will be proceeded with as soon as the time is opportune."