PLIGHT OF SHIPPING

Otago Daily Times, Issue 23702, 9 January 1939, Page 10

PLIGHT OF SHIPPING

GOVERNMENT READY TO HELP LORD LLOYD'S WARNING DECISION—NOT COMMITTEES (From Our Own Correspondent) (By Air Mail) LONDON, Dec. 15. During the course of an important debate in the House of Lords, on the difficulties of the shipping and shipbuilding industries, Lord Lloyd said that the Government had been warned over a long period that there was a shortage of ships of all classes essential for bringing supplies and to provide seamen in case of war. Yet the Government had invariably replied very complacently that all was well, there was an ample sufficiency of ships and an adequate supply of men not only to man the merchant navy but to provide an adequate reserve for the Navy as well. “The crisis has proved abundantly that the critics, and not the Government, had been right,” he added. “ Our mercantile marine, in its depleted condition to-day, is in no way capable of meeting the strain. If the Government did not know the facts, why did they not seek them four or five years ago? If they knew the facts we should not have to waste time with the setting up of a committee now. “ I am perfectly certain that the Board of Trade knows all the facts. If it does not, there is indeed a case made out for a Ministry of Shipping. What is required is not more committees, but a little more decision on the part of the Government.” Since the war a scheme of rationalisation had reduced the capacity for building merchant ships from 3,000,000 tons to 2,000,000 tons per annum, and the number of men capable of building ships had been reduced by 25 per cent, since 1914. It was estimated that .75 per cent, of our reduced capacity to build would be unemployed by the middle of next year. This country had actually become an importer of ships, instead of an exporter. Last year orders to the value of £5,000,000 were placed in Continental yards by British shipowners, The Government had done nothing to protect British shipping from subsidised competition, such as in the Far East and the Baltic.

Need of Protection

Lord Strabolgi (who will be in New Zealand very shortly) said that such industries as the shipping industry needed protection. Subsidies were no substitute. In no other highly-protected country was shipping not protected. He suggested that a reserve should be formed of older ships which would otherwise be laid up and decay. Lord Essendon (chairman of a number of important shipping lines) said that since 1914 foreign tonnage had practically doubled, and British tonnage had practically remained stationary. Other nations had become more ship-minded. With regard to British cargoes carried in foreign ships, other Governments insisted on their cargoes being carried in ships of their own nationalities. He suggested that British ships should receive the full backing of Government departments on every occasion so that they might enjoy the same measure of support as their foreign competitors. The position of the shipbuilding industry in this country was very serious. The most deplorable fact was that at the present time there should be £7,000,000 worth being built abroad for British shipowners, when normally we expected to get £10,000,000 worth of foreign orders in this country. Lord Runciman’s Suggestion Lord Runciman frankly admitted that there was a shortage of tonnage which might be dangerous in emergency, and grave depression in shipbuilding. For both evils, he suggested that the first remedy should be to enable shipowners to make good depreciation. “A concentrated attack on the depreciation account ” would restore their reserves and bring shipowners larger orders. Without committing the Government to its adoption, Lord Runciman announced that he had been examining a scheme proposed by Mr Philip Haldine which would provide that vessels normally laid up should be taken over by a company to hold them. The Government would provide 90 per cent, of the money, the owners 10 per cent. The Government would have free use of the shins in emergency.

The numbers of seamen, Lord Runciman acknowledged, had so far decreased that it would be impossible to furnish as many men for the R.N.R. as in 1914. This decline lie ascribed to the disappearance of sailing ships, and, above all, to the substitution of oil for coal.