§ 7. Mr. Sheldonasked the Secretary of State for Trade and Industry if he will make a further statement on Government aid to the shipbuilding industry.
§ Mr. John DaviesI expect to make an announcement shortly.
§ Mr. SheldonWill the right hon. Gentleman bear in mind that it needs to come very quickly, because there is the question of costings that are being carried out by shipbuilders competing with Govan Shipbuilders and, because of this they are unable to quote for orders which it would be in this country's interest for them to obtain? When will the right hon. Gentleman make a statement about how these subsidies, to which he has only recently become attached, will become rational and comprehensible?
§ Mr. DaviesThe hon. Gentleman would do better to wait for my announcement. I am very much aware of his 1051 first point about the problems of competition in the industry arising from the proposal for Govan Shipbuilders Ltd.
Mr. Edward TaylorDoes my right hon. Friend agree that the age and inadequacy of machinery and cranage in the yards is one of our biggest problems? Will his statement take this into account in encouraging investment? Will he confirm that he regards the shipbuilding industry as a growth industry and not as one destined for eventual contraction?
§ Mr. DaviesOn the first point, I am conscious of the fact that there has been a manifest lack of investment in the industry over a period of time. This will need reconstituting. I agree that the shipbuilding industry is a growth industry with very considerable prospects.
§ Mr. BennHas the right hon. Gentleman yet approved the sum of £12 million, or whatever it is, for the Marathon takeover of the Clydebank yard? Will the new legislation deal only with Govan Shipbuilders and Clydebank, or will it also deal with the shipbuilding industry and cater for the large subsidies now confidently expected?
§ Mr. DaviesThe right hon. Gentleman would do well to await my announcement on all these matters.