HELP FOR BRITISH SHIPPING

Timaru Herald, Volume CXLV, Issue 21308, 30 March 1939, Page 7

HELP FOR BRITISH SHIPPING

Generous State Subsidies

Increased Building Desired

Millions to Improve Services

Programme Outlined ByMinister British Official Wireless (Received March 29, 6.30 p.m.) RUGBY, March 28. Subsidies to shipping and shipbuilding were announced in the House of Commons by the President of the Board of Trade (Mr Oliver Stanley) who recalled that the importance of those industries did not rest only on the contribution they made to the country’s economic resources, but that they are also an essential part of the national defences. Mr Stanley intimated that an annual sum of £2,750,000 would be available over a period of five years for tramp shipping—the scheme following the general lines of the former scheme dating from 1935. As regards liners, it was proposed to appoint an advisory committee for an experimental period of two years to examine and to advise the Government on requests for assistance from liner companies whose services were endangered by subsidised foreign competition; and Parliament would be asked to make financial provision to enable the Government to grant financial assistance promptly in cases where the Government had decided that it was necessary. In cases in which other parts of the British Commonwealth were concerned there would be consultation. Replying to an inquiry by Mr Arthur Evans (Conservative) as to whether the Dominions would be asked to contribute in respect of cargo liners operating between Great Britain and the Dominions, Mr Stanley declared that it would be necessary for a specific case to be established in respect of each individual service and it would be for the Government to consider whether it was appropriate to ask the Dominions to assist.

Direct Encouragement Mr Stanley next turned to the measures intended to give more direct and immediate encouragement. To give more confidence to the shipowner, it was proposed to provide funds from which owners of tramps and cargo liners —other than refrigerated or passenger vessels—ordered in the next few months from United Kingdom shipbuilders, would receive a grant of an appropriate amount, in each of the next five years with the exception of any year in which earnings were such as to make the grant unnecessary. The amount to be used for these grants would not exceed £500,000 yearly during the five year period. The Government proposed to also ask Parliament to make available £10,000,000 for loans to shipowners over a period of two years, on favourable terms for the purpose of building in Britain, tramps and cargo liners —other than refrigerated vessels and passenger vessels—including tramps and cargo liners, intended for coasting trade. Finally, the Government had called for a further exceptional measure of increase in the amount of tonnage under the British flag, and it accordingly proposed to ask Parliament to make £2,000,000 available 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.

Tire proposals outlined by Mr Stanley do not include any assistance for tankers. In the case of each form of assistance, the expectation of the Government is expressed that the interests concerned will take steps during the currency of the subsidy to improve their position, so that future assistance will not be necessary. In the case of the tramp subsidy, the industry is to do its utmost to promote international measures to safeguard freight rates.