CLYDE YARDS.

Hokitika Guardian, 18 October 1923, Page 3

CLYDE YARDS.

A POOR OUTLOOK. GLASGOW, -Sept. 2. Employers of labour in the West of Scotland area are talking in a very pessimistic way way about tiie outlook for the winter. Mr. A. E. Stephen, chairman of Messrs Alex. Stephen and Sons, shipbuilders, Linthmise. speaking after the trials of ttie new Anchor liner California, last week, said that although wages had been reduced and builders were quoting prices so low as to make no provision for profits, or even for working expenses, owners said these prices were still too high, and trade 100 poor, for them to he able to order new vessels. It did not seem possible, lie added, that costs could be cut any lower, and the onlv hope lay iu u revival in trade generally.

The position is well illustrated by the experience of shipbuilding firms on the Clyde with liner contracts. The California, which .Messrs Stephen have completed, is one oi the eight vessels ordered from upper-reach ( lyde firms h v th*’ Anchor-Cunard-Doiinldson combine within the past two nr three years

and of these onlv four have yet been finished. Of four ordered from tiie Fairfield Cov. of Covan-—the Tuscania and the Alhenia—are on service, while the Transylvania and tiie Lctitin are held ini on the stocks. Tho Linthouse linn have completed the (alitornia, but they have the Caledonia held up; while at Clydebank, though the hranconia inis been completed, work on the Alattnia is still .suspended. Even tin’ vessels which have been completed have been held it]) tor long periods, while there are no indication of a restart on those vet to he launched. It seems likely that they will remain untouched on tiie stocks over the winter.

It. is impossible for builders to carry m work al the prices that "can he paid

! i -,- nwuers without incurring losses iniicli too heavy lor serious consideration. It is being said now that some of the shipbuilding and engineering linns have carried too tar tile policy of creating employment for their men by undertaking contracts at net costs, and that their financial stability is being atfeeteil. Wiicn they undertook such contracts thev did not anticipate either such a long period of depression or tiie lock-out of ironworkers, and al.l they hail in mind was that they might bridge over a short spell of unemployment by sacrificing profits, depreciation and establishment charges. Iu engineering there is relatively a larger amount: of work than in sli-p----huilding, mainly because there are a good many linns oilier than marine engineers, and these have obtained u tracts for factory machinery and plan from abroad, and for steel construct'O')al work. Steel-makers, however, state that there is a very poor demand tor their products, even at tiie slightly lover range oi prices, and that (•oiis't l ,i“rs hot it til home and overseas, are littyt tg onlv for their immediate ni'oesAtt?s

If. they add, tiie outlook does no- improve soon, some ol their works ' 'll have to he closed (low'll.