HC Deb 20 April 1955 vol 540 cc179-81
26. Mr. Hector Hughes

asked the First Lord of the Admiralty if he is aware that, between 12th October, 1954, and 31st March, 1955, Norwegian shipowners placed 73 shipbuilding contracts in Norway, Sweden, France, and Western Germany, but none in Britain; that, in Britain, there is now a dearth of shipbuilding contracts for future execution; that this state of affairs threatens unemployment in British shipbuilding yards; and if he will make a comprehensive statement on the subject indicating, in particular, his plans for resolving the relevant problems.

The First Lord of the Admiralty (Mr. J. P. L. Thomas)

I am aware that a large number of Norwegian orders have recently been placed on the Continent. The United Kingdom order books at present represent about two years' work at the current rate of output and there is a marked revival of orders. I cannot therefore agree that there is a dearth of contracts for future execution, or that in consequence there is a threat of unemployment. It seems to me likely that the Norwegian shipowners were influenced by the firm prices and relatively early delivery promised by many yards abroad.

Mr. Hughes

Has the Minister observed the speeches of the chairman of the Peninsular and Oriental Steam Navigation Company and the managing director of the Norwegian-American line on this subject, and does he realise the great anxiety that exists in shipbuilding and shipping circles on the part of both masters and men lest the future may bring unemployment to these spheres? Will he do something about it?

Mr. Thomas

These two speeches have been brought to my notice. In the last two years German and Japanese yards have been in a position to compete successfully with our shipbuilders both in price and in delivery, but that competition, I am glad to say, is now slackening and things are evening out. I understand that during the last few weeks three orders have been placed in British shipyards by Norwegian shipowners.

Mr. Shinwell

Can the right hon. Gentleman say whether, if firm prices and early deliveries are important factors in obtaining further shipbuilding contracts, he has as yet instituted any inquiry into the matter in order to promote a solution or a partial solution?

Mr. Thomas

I think the problem is solving itself now. Continental and Japanese yards have had the advantage of short order books, adequate steel supplies, and a plentiful supply of labour, but they are now running into difficulties, competition is slackening, and things are adjusting themselves.

Mr. P. Williams

Is my right hon. Friend aware that most people in the country are getting sick and tired of the prophets of doom in relation to shipbuilding; secondly, is my right hon. Friend aware that until the order books are, in fact, reduced there will be difficulty in getting new orders; and, thirdly, would my right hon. Friend agree that the information contained in this Question was given by Mr. Henriksen at a lunch in Sunderland when he said, "I think the British"—

Mr. Speaker

I think the supplementary is a little long.

Mr. Willey

Is the right hon. Gentleman aware that there has been a very close association between the shipbuilding yards of Sunderland and Norway for a considerable time, that Sunderland depends upon this association, that it is a matter of great disturbance to Sunderland that we have had no orders for several years, and will he use his best offices to see that orders reach us?

Mr. Thomas

I certainly will, but, as I have said, I think the position is improving as far as Norway is concerned. I will bear in mind the points made by the hon. Member for Sunderland, North (Mr. Willey) and my hon. Friend the Member for Sunderland, South (Mr. P. Williams).

Mr. P. Williams

Is my right hon. Friend aware that the Norwegian shipowners are of opinion that there is a bright shipbuilding future for this nation?