Dearth Of Orders Threatens Crisis For British Shipbuilders

Chronicle (Levin), 30 December 1949, Page 5

Dearth Of Orders Threatens Crisis For British Shipbuilders

(N.Z.P.A.-

—Reuter,

Comriahtj

Received Friday, 10.15 a.m LONDON, Dec. 29. The British shipbuilding industry faced with an "alarming dearth of mquiries and new orders," would have to increase its effieieney and lower costs, Mr. H. R. Robin Rowell presid^nt of the Shipbuilding Conference, declared today. Writing in Lloyds' List and Gazetue, Mr. Rowell said. "Lower . costs depend on cheaper raw matev tjals such as steel, which depends in turn on cheaper coal. Lower costs also depend on the withdrawal of innumerable Government controls and restrictions and bulkbuymg methods, which all tend to inflate the general cost level. In the testing and competitive days ahead the industry eannot alford to carry passengers in the interests of some mistaken idea of the true meaning of full employment The aini must be to secure the greatest possible measure of sus,1m.ex? and regular employment for aii those who normally follow the shipbuilding industry." He said the shipbuilding industry

absorbed 100,000 extra workers during the war, some of whom had stayed in the industry. "This state of affairs cannot continue and many will have to return to their. former employment." The industry was now living on a backlog of orders placed in 1947- and 1948. "The total orders booked in 1949 are unlikely to reach 1,000,000 tons gross, whereas the tonnage is being completed at two ahd a half times that rate," Mr. Rowell said. The revival of shipbuilding in the countries for which Britain was now building ships was again presenting Britaim with the problem of keen competition. Britain was each year building less of the world's tonnage. In September, 1949, Britain was producing 45.5 per cent., compared with 50.5 per cent. the orevious year and 53.2 per cent. in 1947. He appealed for increased allocations of steel and- cheaper raw materials, adding; "We. realise with dismay ,that wage increases and devaluation will send costs up."