HC Deb 04 May 1955 vol 540 cc1674-6
22. Mr. Rankin

asked the First Lord of the Admiralty if he is aware that the total orders booked by United Kingdom shipyards for the year ended March, 1955, amount to 276 ships of 786,000 gross tons; that in the year ended March, 1952, the respective figures were 525 ships of 3,037,000 gross tons; that the total order book of United Kingdom shipyards at 30th June, 1952, was 1,135 ships of 7,009,000 gross tons, as compared with 767 ships of 4,295,000 gross tons as at 31st March, 1955; and what action he is taking to stop this decline in British shipbuilding.

Mr. Digby

I am aware of the figures which the hon. Member has quoted. I cannot, however, agree that there is a decline in British shipbuilding. In 1954 a greater tonnage was completed than in any other year since the war, and the industry as a whole has about two years' work in hand. It must be remembered that the war in Korea brought a considerable and unusual demand for new tonnage in 1952, which led to a great increase in the number of orders.

Mr. Rankin

Is the Minister aware that I received one part of that answer last December? Surely the effect of Korea should be passing by now? Is the hon. Gentleman further aware that, while the position of the large shipbuilders is not of so much concern, the position of the smaller shipbuilders, especially on Clyde-side, is of very serious concern, despite the comforting answer he has given; and that is due, to some extent, to the foolish policy pursued by the Government in restricting trade with the Soviet Union?

Mr. Digby

That is quite untrue, because on the whole there have been very few firm inquiries from the Soviet Union, and it would not be true to say that it affects the position at all. I am aware that the order books of builders of smaller ships are not as full as those of the larger shipbuilders, but the position has improved in recent months.

Mr. Hector Hughes

Does the Minister realise that the real danger is of grave unemployment in British shipyards next year and the following years, owing to the lack of orders for future execution, and foreign competition? What is the Minister doing about it?

Mr. Digby

I do not see how there can be a danger of unemployment next year when we have two years' work on the order books.

Air Commodore Harvey

Following what has been said by hon. Members opposite, will my hon. Friend say how many vessels are being built for the Soviet Union at Lowestoft alone?

Mr. Digby

Certainly, a considerable order has been placed there.

Mr. Rankin

Is the Minister aware that of 62 ships offered to shipbuilders for estimate in the first three months of this year, 23 went to Finland, 13 to Sweden and three came to Britain?

Mr. Digby

I am aware that our foreign competitors have obtained a lot of orders. That is precisely because we have two years' work in hand, and therefore we cannot quote early delivery dates.

Our competitors can quote much better delivery dates.

Mr. Rankin

Not among the small shipbuilders.