INFLATION IN BRITAIN

Greymouth Evening Star, 31 May 1946, Page 7

INFLATION IN BRITAIN

WARNING BY SHIPPING MAGNATE “STEEP, SLIPPERY SLOPE” (Rec. 10.15 a.m.) LONDON, May 30. Speaking at a luncheon at Liverpool after the launching of . the Corinthic, Mr. Basil Sanderson, managing director of the Shatv, Savill, Albion Company, said the actual final form Qf the Corinthic and her three sister ships now being built, as fast vessels with limited passenger accommodation and large cargo space was not-decided until his recent visit to New Zealand and Australia. He found there was full support for the company’s proposal and that there was an urgent need for such vessels maintaining a scheduled speed of 17 knots throughout the voyage, and specifically designed to be suitable for the routes via the Suez, Panama, and Cape Town. Mr. Sanderson disclosed that the three fast cargo ships which the company built in 1933 cost £1,000*,000. Two similar ships built in 1938-39 cost £2,000,000. At present, to duplicate any one of those ships would cost £1,000,000 for each. It was no wonder businesmen were puzzled when it was said there was no inflation in Britain. The common phrase, “Costs increased, it’s a pity,” meant the same as “the pound sterling purchasing power has decreased.” They were indeed on a steep, slippery slope, but there was an occasional advantage in being able to finance present commitments from to-morrow’s depreciated currency.' He warned shipbuilders that shipping companies would not order more ships except on a fixed contract price basis,