The Times MONDAY, MAY 15, 1939. Britain’s Mercantile Marine

Manawatu Times, Volume 64, Issue 112, 15 May 1939, Page 6

The Times MONDAY, MAY 15, 1939. Britain’s Mercantile Marine

There has been a marked increase in the number of orders for new merchant ships since the British Government’s subsidy scheme was announced in the House of Commons in March, according to a cable message from London. This was preceded by vigorous representations by the Imperial Shipping Committee and the British Chamber of Shipping. Particular attention was drawn to the competition in Far Eastern waters, where German and Italian liners are aided by heavy subsidies, and Japanese shipping holds a 10 to 15 per cent, advantage due to currency depreciation and lower standards of living.

In outlining the Government’s scheme, the president of the Board of Trade pointed out that the importance of the shipping and shipbuilding industries rested not alone on the contribution they made to the country’s economic resources. They were also an essential part of the national defences. Mr. Stanley intimated that a sum of £2,750,000 would be available annually over a period of five years for tramp shipping, the proposals following the general lines of the former scheme dating from 1935.

The Minister explained that it was proposed to appoint an advisory committee for an experimental period of two years to advise the Government on requests for assistance from liner companies whose services were endangered by subsidised foreign competition, and financial provision would be made so that prompt assistance could be provided where it was considered necessary.

To give confidence and encouragement to the ship-owner it was decided to allocate a sum not exceeding £500,000 a year, out of which grants would be made to companies placing orders for tramp and cargo liners with United Kingdom shipbuilders. It was agreed, also, to set aside a sum of £10,000,000 to be made available for loans to ship-owners over two years on favourable terms for building tramp and cargo liners.

The practicability of these and other minor measures that were endorsed by the House of Commons is demonstrated by to-day’s message. Two hundred merchant vessels projected under the scheme have been provisionally ordered. It will mean a tremendous stimulus to the Empire’s shipping trade, and it will create full employment for the British shipyards, thus considerably relieving the unemployment situation. For years the urgency of the matter resulting from subsidised foreign shipping has been pressed on British Governments. Some assistance was given, but rather reluctantly in the face of Britain’s traditional free-trade policy.

Now, in the light of recent events, realisation has come of the need of a bold policy of self-defence. As the Economist said, when discussing the present plans, if any British industry could rightly claim the support of public funds, it was shipping, first, because of its supreme national importance in time of war, and, secondly, because its distresses were demonstrably and largely due to the subsidising of the competitive fleets of other nations.

One important point mentioned by Mr. Stanley was that the Government had received assurances from the shipbuilding, marine engineering, and iron and steel industries that they would not raise prices and would co-operate in the adjustment of prices to the lowest possible level. The importance of the British Government’s action can hardly be over-estimated, because the maintenance of its sea transport is essential to the Empire’s existence.