Lieut.-Colonel J. SANDEMAN ALLEN (by Private Notice)asked the Chancellor of the Exchequer why he has taken steps to discourage the formation of a British trans-Atlantic shipping company which intends to purchase and operate the Red Star Line and can he make a statement?
The CHANCELLOR of the EX-CHEQUER (Mr. Chamberlain)My hon. and gallant Friend is under a misapprehension as to the policy of His Majesty's Government in regard to the British North Atlantic shipping interests. So far from their policy being one of discouragement, it will be within the recollection of the House that quite recently public money was made available to the extent of £9,000,000 to secure the rationalisation of that trade, the elimination of wasteful competition between great British owned concerns and the completion of new tonnage, including the "Queen Mary." The new project of which the Government recently learned was one designed not merely to purchase the Red Star Line, but to operate on a large scale, building in the future ships comparable to certain valuable units in the merged fleets of the Cunard White Star Company. An organisation of such a character was bound in the course of time to frustrate the rationalisation so recently attained, and 1154 the Government in the interest alike of the British position in the North Atlantic shipping trade and of the general taxpayer can only discourage it.
Lieut.-Colonel ALLENMay I ask my right hon. Friend if the Government are prepared to control foreign competition in the same way, and cannot he reconsider this question?
Mr. CHAMBERLAINI think that the best way of controlling foreign competition is to make British interests as strong as possible.
Lieut.-Colonel ALLENOwing to the unsatisfactory nature of the reply, I beg to give notice that I shall raise this matter on the Adjournment at the earliest possible moment.