HC Deb 27 July 1955 vol 544 cc1180-1
49. Dr. King

asked the First Lord of the Admiralty whether he will make a statement on the request which he has received from the Confederation of Shipbuilding Unions for a public inquiry into the placing of shipbuilding orders abroad by shipping companies.

Mr. Digby

No such request has been received from the Confederation but one from the Mersey District Committee, containing a request for an inquiry into the placing of shipbuilding orders in Germany, has reached me.

As my right hon. Friend the Chancellor of the Exchequer implied on 19th July, any attempt to go back on the policy of allowing United Kingdom owners to order ships in European yards might well lead to retaliation against the United Kingdom industry, which is substantially dependent on orders from abroad. I do not consider that an inquiry would serve a useful purpose at the present time.

Dr. King

Is the Minister aware that the Merseyside District Committee of the Confederation is alarmed that nine shipping companies have placed orders for sixteen ships in Germany, and that it holds the view that the profit margins demanded by the shipowners is pricing us out of the international market? Will he convey to the President of the Board of Trade, to whom I addressed the Question, the need for getting shipowners and men together to see what we can do to build up our shipbuilding trade abroad?

Mr. Digby

It must be remembered that this is part of the price which we have to pay for a very full order book, which means that our own shipyards are not able to quote delivery dates as early as those of our foreign competitors. That is partly a matter for satisfaction.

Mr. P. Williams

Would not my hon. Friend agree that the position generally in the British shipping industry is very satisfactory but that one of the greatest difficulties that must be overcome is the demarcation between different trades in the shipbuilding industry?

Mr. Digby

I agree that there are various difficulties, but the rate of ordering in recent months has very considerably improved.