FLYING RED ENSIGN IS NOW UNPROFITABLE

Press, Volume XCIII, Issue 27962, 8 May 1956, Page 12

FLYING RED ENSIGN IS NOW UNPROFITABLE

LONDON LETTER

[From KEITH EUN SON, London Correspondent of “The Press”)

London, April 28—The famous Red Ensign flown by British merchant ships may become a less familiar sight in New Zealand and other world ports in future if the Government here does not afford some tax relief to shipowners. The major British companies are the highest taxed in the world and they are afraid that foreign fleets, sailing under the tax-dodging '‘flags-of-convenience,” may drive them on the trade routes they have dominated for so long. British ship-owners have long criticised the registration of vessels under the flags of Panama and similar countries, but crippling taxation is forcing on them the need to register future ships under foreign flags or be forced out of the competitive shipping market. This week Colonel Dems Bates revealed at the annual meeting of tne Cunard Company that £14.000 000 would have been saved between 194 J and 1955 under a flag-of-convenience instead of the Red Ensign. This sum would have sufficed to pay for new ships on order. The International Chamber of Shipping. which met in London this week, pointed to the discouraging fact that only 750.000 tons of shipping was registered under flags-of-convemence before the war. This total has since increased more than 10-fold to 9.000.000 tons, while British shipping is only one-twelfth greater. Panama and Liberia are, the two greatest “shipping countries without actual fleets of their own; but Cuba. Honduras. Costa Rica and Bermuda are also seeing the possibilities of revenue from cheap registrations. These countries have no income tax or profits tax, and companies are faced only with an annual registration fee of a dollar-and-a-quarter (Liberian registry) a ton. Thus, a 10,000-ton ship would cost only £4OOO for registration under the Liberian flag. Some British ship-owners have already sounded the warning to the British Government. They might be compelled “rather than see ourselves driven out of business” to register under a tax-free flag, perhaps in the Commonwealth. Bermuda, as a Commonwealth example. offers' similar terms to Panama and Liberia; and the Shell Oil Company plans a 36-tanker fleet to fly under this flag. P. and 0., Britain’s biggest shipping company, is planning a fleet of tankers worth £40.000.000. If it sails under the British flag it will be at a considerable disadvantage to the foreign fleets registered under the Liberian flag. The company has sailed under the "Red Duster” for more than 100 years; now it obviously must consider the flag concession for its new tanker fleet.

At the turn of the century half the world’s shipping sailed under the British flag. The proportion now is down to 19 per cent., and it is still slipping. A large proportion of this figure is made up of oil tankers. The danger inherent to Britain, which is dependent on imports, in the decreasing tonnage of dry-cargo vessels has been pointed out by many shipping men.

British shipping is neither protected nor subsidised, as are many fleets of other important maritime nations; and the struggle against this competition is proving too much. The situation is of more than passing interest to New Zealand, which is dependent on dry-cargo ships to export her produce. Gallipoli

Alan Moorhead was one of the outstanding correspondents of the Second World War. He has already used some of his war-time experiences in books. More recently he has been studying the private papers of General Sir lan Hamilton, whose military life extended from 1873 until his death in 1947, and the diaries of Mustapha Kemal for a book on the Gallipoli campaign. Published today, that, book should arouse some widespread interest, not only here, but also in Australia and New Zealand: for Moorhead does some “straight talking” about the mishandling of the Gallipoli campaign. The book has

already been selected as a Book Society non-fiction choice. Highwaymen Hunters In the country town of Berkhamstead. Hertfordshire, this week 30 men met to wind up the affairs of a highwaymen-hunting association that has been in existence for 160 years. Thev were members of the Berkhamstead Property Association, formed in 1793. before the official formation of the police force to keep Jaw and order in the countryside. In those days, the association offered five sovereigns for information about damage to property, theft of cattle or the whereabouts of highwaymen. The association has not functioned for several years and the few remaining members felt that thev could hand over their responsibilities to the modern police force. Though the association had special rights, they had not been exercised for many years. Two Winners One Race It is difficult enough to saddle one winner these days, but one British trainer had two winners recently in one race. The feat of stable-com-panions dead-heating in a race is believed to be unique in racing history. Langton Brig, a 10-to-one shot, made most of the running in the “seller" at Eodside. only to be headed a hundred yards from* the post by his stablecompanion. Fair Penny. Langton Brig managed to get up on the post to share the verdict. Many Blessings The West End stage, which has been comparatively bare of worth-while material for some time, unless one considers the controversial verdict accorded “Waiting for Godot.” has greeted warmly Miss Enid Bagnold’s new play. ‘‘The Chalk Garden.” It reached the British stage with many blessings. First, it had a golden reputation won in New’ York and then it had Sir John Gielgud as director, with the result that the most commonplace remarks can take on resonant significance. Most significantly, it brings together Dame Edith Evans and Miss Peggy Ashcroft, who transmute w’hat might have been conventional roles into virtuoso performances of fine acting. The story concerns the effect on a somewhat bizarre country household when a mysterious governess arrives and is found to have been reprieved when sentenced for murder 15 years before. “South Sea Bubble” Also making an appearance in the West End is Miss Vivien Leigh, who attracted a distinguished first night audience to see Noel Cow-ard’s ‘‘South Sea Bubble” at the Lyric this week. It is typical Coward light comedy, which entertains as it wanders along, with talk well filled out with amusing extravagances. Set on a Pacific island under British rule, the play involves Miss Leigh in some unusual diplomacy on behalf of her husband with a native politician w’ho gets the wrong idea of her intentions. She puts him right in the final scene with a bang on the head with a bottle. With Miss Leigh and a handsome newcomer. Ronald Lewis, as heV co-star, the play should have a successful season. Good Substitute

The Christchurch singer. Miss Edna Graham, was called upon at short notice this week to take over the role of the American negress singer. Mattiwilda Dobbs, in “The Magic Flute” opera at Covent Garden. She played her part well, and “The Times” commented that though it “was disappointing not to hear Miss Dobbs as the Queen. her substitute, - Miss Graham, handled the part firmly: and though her voice is not large, sang truly and with ex-cellent delivery.” Detergent Records The hundreds of thousands of pounds spent every year on advertising detergents are paying huge dividends. Last year the United Kingdom used a record 200,000 tons of these svnthetic products, comoared with 190.000 tons in 1954 and 160.000 the previous year. Britain is now second to the United States as a world user of synthetic detergents. She is also developing a large export business, earning more than £6.600.000 last year. Met the Queen Blinded in Korea, a former Southland athlete. Stuart Craig, has been making extremely good progress at his physiotherapy training at St. Dunstan’s College, in London. He had a pleasant surprise recently when the Queen visited the college and stopped to talk to him about New Zealand and her tour there. A pleasant week ended for him with the birth of a son, his second child.