HC Deb 01 April 1930 vol 237 cc1050-1
11. Mr. DOUGLAS HACKING

asked the Lord Privy Seal whether he can now make a statement regarding the progress which is being made in the construction of the five 7,000-ton steamers which were being negotiated in November last year to carry coal this year from Great Britain to Canada?

The LORD PRIVY SEAL (Mr. J. H. Thomas)

As the right hon. Member is no doubt aware, there has been during recent months a continued fall in freight rates, accompanied by a substantial increase in the volume of tonnage laid up both in this and in other countries. I am informed that the interests concerned have decided that in these changed conditions it would be unwise to proceed, at present with the negotiations which they had entered into for the construction of the steamers, to which the right hon. Member refers.

Mr. HACKING

Does the right hon. Gentleman remember that, when he first told us about these five steamers of 7,000 tons each, to carry coal from this country to Canada, he said that he could well leave the coal situation at that; and are those still his views?

Mr. THOMAS

Yes, Sir; and, seeing that the right hon. Gentleman has put that supplementary question, he will know that in the letter which I sent to him, giving the details, I explained these circumstances. I could well press those who informed me that they would build the ships to comply with their bargain, but when there are 300,000 tons of shipping at this moment idle, I feel that I would not be justified in forcing them.

Mr. HACKING

Did the right hon. Gentleman receive a pledge that these ships would be constructed? I thought the right hon. Gentleman said that they were being negotiated.

Mr. THOMAS

I received a pledge myself that they would be, and I also showed the right hon. Gentleman a copy of the contracts; but I would not press any owner into a bargain when there has been a change of circumstances which would not make it a profitable proposition.

Lieut.-Colonel Sir FREDERICK HALL

Is the right hon. Gentleman aware that there has been no appreciable alteration in the freight market during the last five or six months; and is he also aware that a ship-owner, having the slightest knowledge of his business, would never dream of building a 7,000 tonner dead weight, because it is absolutely uneconomic?

Mr. THOMAS

That may be Lloyds' opinion, but it is not—

Sir F. HALL

It is the opinion of the ship-owners—of the people who know anything about it.

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