AID FOR SHIPPING

Otago Daily Times, Issue 23805, 11 May 1939, Page 15

AID FOR SHIPPING

BRITISH GOVERNMENT’S PLAN FOREIGN COMPETITION IMPERIAL CONFERENCE REMEMBERED (From Our Own Correspondent) LONDON. Mar. 30. The appointment of an Advisory Ci%nmittee to examine requests for aid from liner companies affected by foreign competition was one of the British Government’s proposals for assisting the shipping industry outlined by Mr Oliver Stanley, President of the Board of Trade, in the House of Commons this week. Where undue assistance was given by a foreign Government in other parts of the British Commonwealth to the serious prejudice and danger of British shipping the United Kingdom Government would bear in mind the recommendation adopted by the Imperial Conference of 1937, he said. This agreed that there should be consultation between the Governments of the Commonwealth concerned. Mr Stanley was asked whether the dominion Government would be approached to make a contribution to the subsidy for cargo liners and liners trading between Britain and the dominions. He replied that, as far as liners were concerned, it would be necessary for each specific case to be made out to the committee in respect of each individual service which was threatened by subsidised competition. "It will be for the Government, when that case is made out, to consider whether it is an appropriate case in which they could ask a dominion Government to assist them,” Mr Stanley added. MAIN PROPOSALS Other proposals which will shortly be laid before Parliament for helping shipping and shipbuilding include: A sum of £2,750,000 a year to be made available for five years by way of subsidy for tramp shipping, including vessels in the deep sea and near trades, but not the coating trade. The allocation of a sum not exceeding £500,000 a year out of which grants will be made to shipowners placing orders for tramp and cargo liners with United Kingdom shipbuilders in the next few months. , , A sum of £10,000,000 to be made available for loans to shipowners over two years on favourable terms for building tramp and cargo liners, including those intended for the coasting trades, but not the coasting trade, passenger vessels. In order to encourage owners to place orders now any eligible vessels ordered after to-day will not be debarred from consideration for assistance. , , A sum of £2.000,000 will be made availableavailable for the purchase of suitable vessels on the United Kingdom register, which, though still capable of service, would otherwise be sold to foreign owners or for breaking up. These vessels will be kept in reserve. , . , It will be a condition of assistance for tramps and cargo liners that the owners shall offer to the Government any vessels they may have proposed to scrap or to sell to foreign buyers. ASSURANCE FROM INDUSTRIES Mr Stanley said that the Government had received assurances from the shipbuilding, marine engineering and iron and steel industries that they would not raise prices and would cooperate in the adjustment of prices to the lowest possible level. The measures of assistance proposed would apply to ships registered in the United Kingdom. The subsidy to tramp shipping would include vessels in the deep sea ...id near trade, but not the coasting trade. The subsidy scheme would follow the general lines of that in operation uinder the British Shipping Assistance Act, 1935-37. There would be some alterations, mainly as a result of adopting a five-year period instead of the annual position. _ In each year the subsidy would be subject to an arrangement by reference to the shipping freight index whether it should be paid in full, at a reduced rate, or not paid at all. The Government would expect British crews to be employed and co-opera-tion to be maintained. The Government also would expect the industry to do its utmost to promote international commerce tending to adjust supply so as to safeguard the level of freight rates, and to organise itself so as to satisfy the Government that at the end of the subsidy period it would be in a better position than it is now to maintain itself without Government financial assistance. SHIPS NEEDED NOW

These measures of assistance, said Mr Stanley, might be expected to result in due course in the placing of orders for new ships, but it must bo some time before orders of this kind took effect. Meanwhile, the shipbuilding capacity must be maintained and further proposals would be made to ensure that further ships shall be built forthwith.

It was in order to give more confidence to shipowners that it was proposed to-provide a fund from which the owners of tramps and cargo liners, other than refrigerator and passenger vessels, ordered in the next few months from United Kingdom yards would receive a grant of an appropriate amount in each of the next five years, with the exception of any year in which their earnings made it unnecessary. The amount to be used for the loan would not exceed £500,000 a year during the five-year period. Dealing with the proposal to ask Parliament to make available the sum of £10,000,000 for loans to shipowners over a period of two years on favourable terms. Mr Stanley mentioned that the loans would be for the purpose of building in Great Britain tramp and cargo liners, including cargo liners intended for the coasting trade. These would be made under financial terms similar to the conditions in the scrap-and-build scheme authorised by the Shipping Act of 1935. It would be proposed in a later statement to authorise new schemes for any vessels ordered after March 28. and to see that they were not barred from assistance provided they met with requirements.

While the Government had reached the conclusion that the present measures are temporary and realise that it is necessary to ensure the provision of new shipping and increased work for the shipyards, he said, it would require the shipbuilding industry to secure more regular ordering in future of new tonnage. Steps were, being taken in regard to municipal or other authorities to see that British tonnage was used for their coastwise shipping. The effective co-ordination in this direction of the railways, road hauliers, canals and coastal shipping lines would receive the Government’s consideration. All possible steps to assist British shipping would be taken by the Government in its discussions with foreign Governments.

“The situation calls for exceptional measures to increase the tonnage under the British flag,” declared Mr Stanley, “It is proposed to ask Parliament to make (he sum of £2,000,000 available for the purchase of suitable ships of British register and making them serviceable for service. Such vessels would i.ot be brought into use for trading, except in an emergency, and would be retained ready for use. The President of the Board of Trade hoped the discussions with regard to the possibility of reorganisation would begin shortly. With regard to iaid-up tonnage, responsibility for the maintenance of that reserve would fall on the Government.