HC Deb 05 December 1949 vol 470 cc1501-2
1. Mr. Ronald Chamberlain

asked the Minister of Transport whether he will now take action to prevent British-registered ships from being sent abroad for refitting and repair while unemployment persists at its present level in British ship-repairing yards.

The Parliamentary Secretary to the Ministry of Transport (Mr. James Callaghan)

No, Sir. It sometimes saves very valuable ship's time to repair in an overseas port. The policy proposed would hamper the ability of our ships in competition with the ships of other flags to make their full contribution to our national balance of payments.

Mr. Chamberlain

While undoubtedly there has to be some further deflation of this industry, is my hon. Friend aware that the position is being greatly aggravated by the despatch to north European ports and to American ports of British ships for repair and refitting, which is being done at cut prices compared with British prices, and will he use his powers to do something about it?

Mr. Callaghan

No, Sir; I do not think it is the case that the position is being seriously aggravated. My hon. Friend will remember that this is a two-way traffic, with foreign ships being repaired in this country as well as British ships being repaired abroad, and that sometimes the balance of advantage is on our side.

Squadron-Leader Fleming

Will the Parliamentary Secretary take note that the most prudent action he can take is to persuade British shipyards to lower their costs, so that they can compete with foreign shipyards whose prices are cheaper?

Mr. Callaghan

There is no evidence that British costs are substantially above world prices.

Mr. Chamberlain

While there are many things in America that we do not want to imitate, is my hon. Friend aware that America puts a tax on her ships that go abroad to be repaired?

Mr. Callaghan

My right hon. Friend does not at the moment wish to put any obstacles in the way of this two-way traffic, where the advantage is on our side.

Mr. Collick

Will my hon. Friend consider refusing sanction for British ships to be repaired in foreign ports where the conditions of labour do not compare with those in this country?

Mr. Callaghan

That is an important situation that is kept in mind.

Mr. Peter Thorneycroft

Will the Parliamentary Secretary look at the costs position in view of the answer he has just given, and will he make it perfectly plain that if British shipyards are to compete with foreign shipyards, their costs and services have to be competitive?

Mr. Callaghan

That is a statement of principle which is quite unexceptionable—they have to be competitive and they are, in fact, competitive.