§ 19. Mr. PALINGasked the President of the Board of Trade how many advances have been made for the purpose of building or modernising vessels under the British Shipping (Assistance) Act, 1935, and the amount of money represented by such advances; how many ships have been demolished under the scheme; and whether any of the ships have been demolished outside the United Kingdom?
§ Mr. RUNCIMANProvisional approval has been given to proposals which cover the building of seven tramp ships and one cargo liner totalling 39,470 tons gross. The amount of the loans involved is 671,400. Advances are made as the work proceeds, and none has yet been paid, nor have any of the ships nominated under the Scheme yet been demolished. I should like to add that I understand that the shipowners concerned are now making their arrangements with the shipbuilders. I know of no reason why the commencement of the work should be delayed.
§ Mr. PALINGIs it possible under this Act for shipowners who are not scrapping their old ships to buy old tonnage from other firms, sell it abroad and so qualify for Government assistance?
§ Mr. RUNCIMANNo, Sir, I am afraid that would not be the exact description of the process that is taking place, but it is in our interest that a number of vessels which are at present of very little use to us should be disposed of as scrap rather than be left to trade in competition with the others.
§ Mr. PALINGIs it not the fact that some of these ships have been sold abroad, because people abroad are paying better prices; and is it not also the fact that ship breakers in this country last year supplied rather less than half the amount of scrap that they usually do, while more has been imported from abroad?
§ Mr. RUNCIMANIf the hon. Member is referring to methods of scrapping, it is true that some vessels have been broken up abroad, but their case is provided for in one of the Sections of the Act.