SURPLUS SHIPPING

New Zealand Herald, Volume LXXII, Issue 22149, 1 July 1935, Page 9

SURPLUS SHIPPING

REMEDYING THE POSITION RATIONALISATION SCHEME British Wireless RUGBY. June 28 A rationalisation scheme for shipping was discussed by Lord Essendon, wellknown British ship owner, in a speech at the conference of the International Chambers of Commerce in Paris. The scheme, as drafted by the International Shipping Conference, provides for the laying up or scrapping of tonnage which is temporarily or permanently in excess of requirements, and to do this as far as possible through the voluntary efforts of ship owners. Lord Essendon explained that the body administering the scheme was not intending to exercise control oyer shipping businesses, but to determine what compensation would suffice to induce owners to withdraw sufficient toanago to adjust supply to demand. On that basis dues would be fixed and collected from all vessels through the machinery of Governments, whose co-operation would be. limited to the functions of collecting a tax accepted in Advance by the industry. The money thus obtained would bo paid into an international pool, and from this would be provided compensation, at a rat*3 to be fixed by the corporation, to any ship owner who found it advantageous to lay up or scrap rather than to trade. Compensation would be adjusted at a level sufficient to make the laying up attractive. It was estimated, said Lord Essendon, that there were 45,000,000 gross tons of effective competing tonnage engaged in international trade, and that the laying up or scrapping of 9,000,000 tons would bo moro than sufficient to achieve the objects. The conference had in view a position which probably would ba met by an annual due of Is 3d per gvosu ton, equivalent to about 2s per net tori on 36,000,000 gross tons trading., and yielding about £2, available as compensation, which in turn would yield approximately 5s per gross ton and 8s per net ton as compensation for 9,000,000 tons laid up or scrapped. Regarding subsidies, which was a matter for Governments, Lord Essendon suggested that the prospect of successful rationalisation would lie increased if it were understood that the Governments would not increase those at present in operation. As the effect of rationalisation began to be felt, and shipping once more was able to pay its way, the need for subsidies would aiminish. It might then be found tUat theGovernments concerned could afford to modify or even abolish them.