THE H.B. TRIBUNE MONDAY, AUGUST 20, 1931 SHIPPING SUBSIDIES.

Hawke's Bay Tribune, Volume XXIV, Issue 211, 20 August 1934, Page 6

THE H.B. TRIBUNE MONDAY, AUGUST 20, 1931 SHIPPING SUBSIDIES.

It is quite possible that the vievts on shipping sibsidies of the United States Secretary of Agriculture, as given in an overnight cable, represent only an individual opinion that must not be taken as expressing a policy likely to be adopted by the Washington Administration. They, however, strike a new note that will be welcomed in British shipping circles, if only as reviving some hope of eventually reaching international understanding on this much vexed question. It will be seen that Secretary Wallace is not in any way actuated by a

recognition of the unfairness of this method of competition, but merely by his concern for the interests of American primary producers seeking, like our own, outside markets for surplus products. At the same time, whatever might be the motive, the application of the principles lie advanced would have the effect of vastly improving the position for British cargo-carriers. Last week’s mail brought us London newspaper files containing full reports of the House of Commons debate on the proposal to provide some compensating subsidy to British “tramp” shipping in order to preserve it as against subsidised competition by foreign craft. It fell to Mr. Walter Runciman, as President of the Board of Trade, to introduce the subject and, later on, to reply to the many differing views evoked from interested members, lie was careful, in the first place, to point out the need for realising that the fundamental difficulties not only of British shipping, but also of all shipping, lie in two facts. These arc that the seaborne trace of the world has since 1929 fallen by about 33 per cent, and is now less than in 1913, while, on the other hand, since the latter year, merchant shipping lias increased by about 50 per cent. These facts are in themselves quite sufficient to account for depressed international freight markets, resulting in “tramp” rates standing at about three-quarters of the 1913 figure, while running costs are, of course, very much heavier. Liner freights have certainly maintained themselves at an appreciably higher proportion of the old rates, but here the result has been that most of them arc running with empty cargo space that has much the same effect so far as remunerative operation is concerned. British ship-owners are quite prepared to stand up to these world-wide adverse conditions in lhe hope that they will gradually rectify themselves if only a fair field for open competition is maintained. The subsidy system adopted, in various forms, by so many other maritime countries lias, however, introduced a factor with which they find great difficulty in contending, especially when all Empire ports are left open to foreign shipping on practically the same terms as for I’i-ilish. The modest eoiiiilerv:iiling subsidy now in eon tempi a tkm has reference only to the tramps, hut from what M . Runciman had to say we may hope that some

wider measure of “protection” for British shipping may ere long be developed. After pointing out the splendid service as “links of Empire” British intra-Imperial liner companies had rendered, he pointed to serious foreign invasions of their spheres of action that had taken place- in recent years, incidentally making special allusions doubtless intended for American incursions into the Australian and New Zealand trade. These he alleged were made profitably possible only by the steady subsidy paid on a mileage basis by the Government of the country whose flag the ships fly. “On Imperial grounds,” he went on, “we cannot see this danger without taking some steps, and it is desirable that foreign countries should understand that we are not going to submit to present conditions without making a great effort to equalise them.” Mr. Runciman, when he spoke thus, had evidently no hope of any widespread international

agreement in view, but rathei only some effective measure ol co-operation between the Oh Country and the oversea Dornin ions. It is a little surprising tc find him in this respect indicating serious trouble in securing suet co-operation. “The House,” In. said, “must not imagine that il is very simple or easy to deal with subjects of this kind with great self-governing countries liki the Dominions and to get them, without a great deal of explanation, to understand the problems wc have to face to-day.” However, lie seems hopeful of better

results from mm I '.' recent confidential communications that have passed, and we should be able to feel that, of all the Dominions, our own will place the least obstacle in the way of a general understanding of such vital moment to all.