PLIGHT OF SHIPBUILDING

Taranaki Daily News, 25 September 1928, Page 2

PLIGHT OF SHIPBUILDING

FOREIGN COMPETITION. DISQUIETING FEATURES. London, August 3. “Lloyd’s returns of shipbuilding for the June quarter do not form a very cheerful study,” says Truth. “No industry is a better mirror of national prosperity than the shipbuilding trade. Shipowners in the freight-carrying business place their orders for new construction with a view to future prospects.

“On June 30 last there ■ was under construction in the yards of Great Britain and Ireland the following gross tonnage: Steamships, 649,482; motorships, 546,826; sail, 6,302. For the previous quarter, the corresponding figures were; steamship, 862,083; motorships, 573,546; sail, 5,213. The better to enable comparisons to be drawn the returns for the June quarter, 1927, may be quoted; steamships, 758,162; motorships, 627,7.00; sail, 4,526. It is thus dear that the shipbuilding industry is faecd with a serious decline.

But the most disquieting feature of these shipbuilding returns is revealed by contrast with the figures of other maritime countries. The world tonnage under construction at the end of June last was 2,660,462, of which 42.2 per cent, was in British yards and 54.8 per cent, was in foreign yards. The average for the four quarters of the year preceeding the war was 57.2 per cent, for British yards and 42.8 for foreign yards. “During last quarter British launches totalled 403.168 tons, and new ships laid down 278,983 tons. .In foreign yards during the same period launches aggregated 258,915 tons, and new construction commenced 260,910 tons. In other words, British slips were left empty to the extent of 124,185 tons, whilst foreign slips gained to the extent of 1,986 tons. “The significance of this development of foreign rivalry is twofold. It means the passing of a large volume of the world’s carrying trade from the Red Ensign. And it means the narrowing of the market for British shipbuilders. Of the tonnage under construction in Great Britain and Ireland on June 30 last 158,000 tons will be registered under the British flag and 144,000 tons is either on foreign order, or for sale. Germany, Holland and Italy show continued expansion, particularly Geiniany. “It comes to this: foreign shipowners will place their orders where they can get best value, with a natural bias in favour of their own national yards. “The great passenger companies will always keep a certain number of the most important slips in the kingdom busy. It is the yards which cater for the freight-carrying traffic that are now languishing. The decline in the export coal trade has been a seriously adverse factor, very inadequately mitigated by the increase in the oil trade. The coal trade was in our own hands, and we supplied the world. The oil trade is in foreign hands, and largely carried by foreign keels. Nearly half the oil carriers launched last year were built in foreign yards. “Is there a remedy? It Is very difficult to see it outside of an expansion in oui - ocean commerce which would justify shipowners in placing heavy orders for new tonnage. But the competition is extending to our ocean commerce. In increasing ratio our imports are coming to these shores under foreign flags. Naturally as the foreigners build ships they mean to use them. “We shall always be the greatest maritime power in the world, as even the United States has now come to recognise after her costly and ineffective experiment with subsidised shipping. But that we shall continue to be the ocean carriers for the world is too much to hope. We can only fight the progress of other maritime countries with the economic weapon.

.“All the time we could build cheaper and quote lower freights our position was assured. Now that our shipbuilders and shipowners have to pay for a higher standard of Hying, meaning higher wages and less work, the foreigners are seeing their chance, and taking it.”