HC Deb 10 December 1935 vol 307 cc711-3
8. Mr. STOREY

asked the President of the Board of Trade the number and gross tonnage of the vessels ordered under Part II of the British Shipping (Assistance) Act; and how many applications for assistance under this Act are at present under consideration?

Dr. BURGIN

As regards the first part of the question, I would refer to the reply which my right hon. Friend gave to the hon. Member for Guildford (Sir J. Jarvis) on 5th December. Four applications for assistance are at present under consideration by the Ships Replacement Committee.

15. Mr. STOREY

asked the President of the Board of Trade how many of the ships scrapped, or to be scrapped, under Part II of the British Shipping (Assistance) Act, 1934, have been, or are to be, scrapped outside of the United Kingdom?

Dr. BURGIN

So far, 45 vessels, totalling approximately 196,000 tons gross, have been nominated for demolition in connection with approved proposals under the scheme. Eleven vessels, of approximately 38,000 tons gross, have been sold to British shipbreakers, and 15 vessels, of approximately 75,000 tons gross, to foreign shipbreakers. Arrangements for the disposal of the remaining 19 vessels have still to be made by the shipowners concerned.

Mr. STOREY

In view of the large import of scrap iron into this country, and the difficulties experienced by British shipbreakers in obtaining tonnage, would it not be much better that this work should be done by British labour in British ports?

Dr. BURGIN

That is a very important consideration, but the object of this scheme was to encourage shipbuilding, which is, on balance, far more capable of giving employment than shipbreaking; and, so long as the major object of the scheme is achieved, that is the principal matter for my Department.

Mr. A. V. ALEXANDER

Can the hon. Gentleman say how many of these ships, before being scrapped, have been purchased for foreign owners?

Dr. BURGIN

The object of the scheme is to get rid of surplus tonnage, and it matters little whether it is foreign or British tonnage that is scrapped.

Mr. THORNE

When these vessels are sold to British shipbreakers, is there any guarantee that they are not sold to foreigners?

Dr. BURGIN

Does the hon. Member mean re-sold?

Mr. THORNE

Yes.

Dr. BURGIN

I could not tell without looking at the individual contracts, but I imagine there is very little risk of that.

Mr. SHINWELL

Has the Department information which shows that vessels sold for the purpose of scrapping are being retained by foreign owners and put in commission?

Dr. BURGIN

No, Sir; that is not the case.

Mr. SHINWELL

Are you sure?

Mr. GRAHAM WHITE

Is it not the case that some of these foreign vessels which have been sold, with the subsidy value attached to them, are bringing a profit to the foreign buyers which enables them to compete with us, so that the object of the subsidy is defeated?

Dr. BURGIN

I know of no such instance.