REDUCED SHIPBUILDING.

New Zealand Herald, Volume LX, Issue 18295, 11 January 1923, Page 6

REDUCED SHIPBUILDING.

Shipbuilding returns show a marked reduction in the construction of British merchant vessels, as compared with the state of things before the war. This British reduction is part of a world-wide experience. Our national interests are so identified with shipping that ' this lessening of activity must cause some concern. In the words of the present Chancellor or* the Ex--1 chequer, when President of the Board of Trade, " Shipping is our r - life-blood,'" and any problem of ? the mercantile marine is a question f for the whole Empire. The chief 5 cause of this reduction is the d?- ' crease in the volume of international - trade, a direct, consequence of the 1 war. There has been for some time a surplus of tonnage beyond require- ■ merits. Although the Board of--1 Trade returns for 1921 showed an > increase in the value of Britain's imports and exports as compared with ! 1913, they revealed a serious decline 1 in trade as expressed in terms of " weight—about 30 per cent, in im- • ports and 64 per cent, in exports, ' Naturally, with a great volume of " tonnage lying idle, there has been ' little inducement to build merchant 1 ships. The ten years' holiday in ' naval construction has added to the ' difficulties of shipbuilding, as the ' economies made possible by a large • output from the yards have been im--1 possible. While shipping freights ' have generally fallen, under the in- ; fluence of keener competition for the relatively small number of cargoes to be transported, operating costs L have gone up. Particularly notice- ' able is the enhanced cost of handling ships in port, owing to higher wages ruling among waterside 1 workers. Similarly, there has been ' among shipyard and engineering ' workers a demand for rates of pay ' beyond that which the shipbuilding industry could* stand. There are 1 signs, however, of a revival in the industry. The P. and O. Company and the Cairn Line are waiting to invest in new ships as soon as labour ' conditions allow, and the resumption 1 of a naval programme, for the build- ; ing of the smaller type of vessels, will assist indirectly. An increased ' production throughout the ' world, \ and especially in the maritime countries, will create a demand for ton- ' nage that should ere long right 1 matters.