EMPIRE SHIPPING.

Otago Daily Times, Issue 19946, 13 November 1926, Page 19

EMPIRE SHIPPING.

SCHEME FOE. HIGH-SPEED SERVICES. ILL-ADVISED SUGGESTION. (From Otjb Own Correspondent.) LONDON, October 8. It ia an extraordinary illustration of tha fascination which Government-assisted enterprises still possess for many people that once more a scheme of high-speed subsidised ships for inter-Empirs services should be brought forward. One would have imagined (writes a special correspondent of the Financial Times) that the costly experiences of the United States, the Australian Commonwealth Government, and other bodies who have operated State-owned or Government-assisted shipping would have discouraged any fresh efforts in this direction. The teachings of experience do not at times, however, appear to convey any meaning, and Sir Thomas Clement (chairman of the produce firm of Messrs A. Clement and Sons, which trades with all the dominions) has succumbed to the lure of high-speed Empire shipping services which, as they would admittedly be of an uneconomic character, would require financial support from dominion and Home Governments. It will be recalled by those who are familiar with the history of schemes of this character that some aspects of the subject received the consideration of the Imperial Shipping Committee and were reported on unfavourably. GOVERNMENT SUBSIDY.

Thera is really nothing novel in the proposal now made to provide X 12,000,000 of capital to build a fleet of 18 ships designed for speeds of 21 knots or more, and to ask for a Government subsidy in respect of the estimated loss on operation of £3,000,000 a year. Speed at sea 1s a very costly luxury, and the shipping lines engaged in the operation of ships o'n Empire' routes know that the economic limits of speed have been reached by the vessels now in service. The question of providing ships of higher speed presents no technical difficulty, out is a financial problem and it is not easy to show that the advantages wbicn would accrue from higher speed are worth the high price which would have to be paid. The estimates of capital outlay and operating costs which have been put forward for fhe Clements* scheme are not accepted in shipping circles as being much tnore than guesswork, as so much depends on the ability to obtain full cargoes if a number of vessels of this class were added to those already in service, which ate more than ample for the trade which is available.