BRITISH SHIPBUILDING

Dominion, Volume 31, Issue 70, 16 December 1937, Page 10

BRITISH SHIPBUILDING

Decline In New Orders

The latest shipbuilding returns issued by Lloyd’s Register, those for the quarter ended September 30, are disappointing, says the “Economist.” In contrast to the movement u year ago, the volume of new mercantile tonnage commenced during the third quarter showed a decline from 367,700 gross tons to 218.600 gross tons, an indication of the unwillingness of shipowners—recently voiced by the chairman of the P. and O.—to place orders for new tonnage at increased prices. The cautiousness of shipowners, in turn, reflects their lack of confidence in the future of international trade, and, consequently, in the maintenance of the current level of freight rates over a period of years. This development, however, was not confined to the industry in this country, for the volume of tonnage commenced abroad also showed a decline, from 596,600 gross tons in April-June to 429.700 gross tons in July-September. The current level of activity in British shipyards has as yet been scarcely affected by the reduction in new orders, the tonnage under construction having fallen only slightly, from 1,200,000 gross tons at the end of June to 1,185,000 gross tons at the end of September, against 928,600 gross tons a year ago. The proportion of the tonnage now being built in Britain intended for registration abroad or for sale has increased from 8.3 per cent, at the end of June to 15.2 per cent, at the end of the past month. If allowance is made for the increase in naval work on hand, equivalent to about 1,000,000 tons of mercantile tonnage, the total volume of activity is not unsatisfactory for the shipbuilders. At the same time, the recent downward trend of new orders for mercantile tonnage is scarcely encouraging, especially as there is no immediate prospect of an early increase in orders. BRITISH TREASURY RETURNS Increase In Floating Debt (British Official Wireless.) (Received December 15J 5.5 p.m.) London, December 14. The Treasury returns show the total ordinary revenue to date at £446,970,746, compared with £424,148,493 at the corresponding date lust year. The total ordinary expenditure to date ia £606,440,405. as against £559,971,206 at the corresponding date in 1936. The total floating debt outstanding is £974,120,000, compared with £850,035,000 a year ago. The net increase since March 31 is £275,880,000. Corporation Of Underwriters

A net profit of £2021 was earned by the Corporation of Underwriters (N.Z.). Limited, Wellington, for the year ended September 30. the second year of operations. The directors recommend a dividend of 6 per cent., absorbing £3OO on both classes of shares. Directors’ fees absorb £240 and. £406 is applied to writing off preliminary expenses in full, while £5OO is used to create a general reserve, leaving £705 to bo carried forward.