Mr. Savage Not Surprised

Northern Advocate, 22 July 1938, Page 5

Mr. Savage Not Surprised

The information received from London that it had been decided, owing to the enormous increase in costs, not to proceed with the building of two Pacific liners, was referred to the Prime Minister last evening. “Frankly, I have never expected anything else,” said Mr Savage. It would be ridiculous, he considered, to attempt to build the ships at prohibitive cost. At present everything that was required for shipbuilding was being used, at full pressure by r the British Government in the development of its rearmament programme. There was apparently a shortage of skilled labour and of material, and that was bound to have its effect on costs. “In the circumstances, we Cannot afford to be too hasty,” the Prime Minister added, “After all, it may not be too much to say that the defence of Britain is at least as important as the provision of shipping services across the Pacific. However, as far as New Zealand is concerned, I can give an assurance that the building of the two ships will not be forgotten. We will keep the -matter open for discussion, and the work will be proceeded with as soon as the time is opportune,”