WORK STOPPED

Southland Times, Issue 21576, 14 December 1931, Page 7

WORK STOPPED

BUILDING OF (feIANT LINER.

COUNTRY DISAPPOINTED.

(British Official Wireless.)

(Rec. 5.5 p.m.) Rugby, December 11. The decision of the directors of the Cunard Company to suspend work on the giant new liner now under construction at Clydebank met intense disappointment throughout the country. It is a 73,000-ton vessel which is estimated to cost £4,500,000 and was due for launching next May, and with it the Cunard Company hoped to obtain the blue riband of the Atlantic, which for 20 years they held with the Mauretania. About 3000 men have been continuously employed on the construction of the ship, apart from those engaged in associated industries providing equipment. The reasons prompting the decision are announced in a document to the directors of the company last night. The company’s decision was the main topic of discussion in the lobbies of the House of Commons last night and the matter was raised by the Clydeside members during the closing stages of the debate. A vote of censure and a statement on behalf of the Government by the Hon. Walter Runciman was promised to-day. This was made in reply to a question by Mr D. Kirkwood. Mr Runcinian said the Board of Trade had been informed confidentially some days ago that the company considered it necessary to suspend building for the present. The reason given by the company was this year was the first, time for many years that the company had been unable to earn depreciation on its old ships. The question of direct Government assistance was not raised. He feared it would not be possible to give financial assistance in this case. The Cunard Company was building the vessel out of its own resources and the only assistance requested from the Government was in respect of insurance, and this was given with the approval of Parliament.

“The suspension of work on the vessel is very’ much to be regretted, but I regret any idea of direct Government financial assistance is out of the question and we can only hope circumstances will permit of the building before long. I would like to add that all bills of exchange given on this ship will be paid when they mature out of the company’s own liquid resources which are held for the purpose.”