§ 7. Mr. Rankinasked the Parliamentary Secretary to the Admiralty if he has considered the representations of shipbuilders that the disappointing launch output of 1956 was due to a shortage of materials; that the whole tempo of production would be increased by an adequate supply of steel coming into the yards in proper sequence; and what steps he proposes taking to meet the needs of the ship. builders.
§ Mr. GalbraithI am aware from discussions which my right hon. and noble Friend's predecessor had with the shipbuilding industry that there is capacity for greater output given more steel. I would refer the hon. Member to the Answer I gave last week to Questions put down by the hon. Member for Sunderland, South (Mr. P. Williams) and others and to the Answer I am giving today to questions by the hon. Members for Sunderland, South and Sunderland, North (Mr. Willey).
§ Mr. RankinDoes the Minister realise that the total shipbuilding orders in hand, the new orders for 1957, and the production of steel, are better than they have been for a long while? Will he not realise that the fault lies with his Department in that it is failing to ensure that steel is delivered to the yards at the proper time and in proper sequence, and that, consequently, it contributed towards the lower production last year?
§ Mr. GalbraithI cannot for one moment accept that it is the fault of my Department.
§ Mr. RankinIt is.
§ Mr. GalbraithI cannot accept that. We are doing everything we can to increase the amount of steel which is going to the shipyards. We have been doing that. and shall continue to do it.
§ Mr. P. WilliamsAs my hon. Friend's Department has been trying to do this for five or ten years, what signs are there of any success being achieved in the next five or ten years?
§ Mr. GalbraithI think my hon. Friend will find that this year there will be improvements compared with last year.
§ Mr. WilleyWhile I do not share the pessimism of the hon. Member for Sunderland, South (Mr. P. Williams), is the Minister aware that steel supplies improve every time we raise the subject in the House, and that what we want is a continuation of the improved supplies and not sporadic improvement followed by relaxation?
§ Mr. GalbraithI am very well aware of the problem. As I have said, the Admiralty has already been doing, and is continuing to do, everything it possibly can to get the steel industry to supply more steel for the shipbuilding industry.
§ Mr. HobsonWill the hon. Gentleman have a word with his right hon. Friends with a view to bringing before the House, probably in reply to a sponsored Question, an answer about the allocation of steel to the shipbuilding industry? We really cannot go on year after year having read out official briefs which always give the same reply. Is the hon. Gentleman aware that the position is now complicated because the tankers now proposed to be built are of increased tonnage, and, therefore, the demand for steel plate is increased?
§ Mr. GalbraithYes, sir.
§ Mr. Dudley WilliamsIs my hon. Friend aware that deliveries are likely to be greatly accelerated now that the steel industry has got rid of the bugbear of nationalisation?
§ Later—
§ Mr. RankinI beg to give notice, having had second thoughts, that I shall raise on the Adjournment the matters pertaining to my Question.
§ 17. Mr. Willeyasked the Parliamentary Secretary to the Admiralty whether the discussions with the shipyard industries about steel supplies have now been completed; and if he will make a further statement.
§ Mr. GalbraithI have nothing to add to the answers I gave on 23rd January to Questions put down by the hon. Member and other hon. Members, but I would refer him to the reply given by the Paymaster-General on Monday to a Question put down by the hon. Member for Dunbartonshire, East (Mr. Bence).
Mr. WileyCan the Civil Lord say how far the resort to physical controls has been successful and whether that is helping? Can he also assure the House that this year the British shipbuilding industry will reach an output of 1¾ million tons?
§ Mr. NabarroVery woolly, Willey; very woolly.
§ Mr. GalbraithAs I said in reply to the Question last week, the discussions initiated as a result of the meetings between the First Lord and the President of the Board of Trade are still in progress.
§ Mr. CallaghanIs it not the fact that the Admiralty assume the responsibility for this but have no powers in the matter at all, and that if the steelmasters decide that they do not intend to supply the shipyards with steel there is no power on earth, in the Admiralty or outside, to compel them to do so?
§ Mr. J. GriffithsUnless we renationalise steel.
§ Mr. WilleyWill the hon. Gentleman say how far the system of the licensing of exports is proving successful in helping the shipbuilding industry? Or does he not know?
§ Mr. CallaghanHe does not know.
§ Mr. GalbraithThere has been a reduction in exports of 50,000 tons, and that is obviously helping.
§ 18. Mr. Willeyasked the Parliamentary Secretary to the Admiralty what steps he has recently taken to improve the delivery of steel to shipyards in correct sequence.
§ Mr. GalbraithDeliveries in better sequence would be made easier by ample supplies, and my right hon. and noble Friend is doing his best to secure them.
§ Mr. WilleyWill the hon. Gentleman pay particular attention to ship repair work, which makes comparatively little 982 demand on steel, in view of the allegations which are being made that British ships are going to continental ports to be repaired there with British steel?
§ Mr. GalbraithI understand that, so far as the repair of the tanker fleet is concerned, the position is quite satisfactory.
§ Mr. CallaghanAs I could not get an answer to my last supplementary question, may I now ask the hon. Gentleman to tell us, if the powers of oral persuasion fail, what other recourse he has, what remedies he has, to ensure that the shipyards get the steel they want?
§ Mr. GalbraithI think it a good idea to wait and see what the powers are.
§ Sir R. JenningsWill my hon. Friend continue to co-operate with the steel mills and the shipbuilding industry of this country to keep the supplies of steel plates going to the shipyards, which is the most important thing we all in this House want?
§ 20. Mr. P. Williamsasked the Parliamentary Secretary to the Admiralty what are the practical difficulties which make it impossible to eliminate altogether incorrect sequence of deliveries of steel to the shipyards.
§ Mr. GalbraithThe steel makers find difficulty in aligning the programme of their rolling mills with the requirements of individual customers. This difficulty is made worse in times of general shortage like the present, but it should be reduced to very small proportions once steel for the shipyards is in ample supply.
§ Mr. P. WilliamsWhilst recognising the difficulties of the makers of the steel, and whilst recognising the need, of which my hon. Friend spoke just now, to increase the production of steel as much as possible, may I ask my hon. Friend whether he would not agree that one of the difficulties over long-range planning in the steel mills is the threat of nationalisation?
§ Mr. H. HyndWhat does the Parliamentary Secretary mean by talking about "this time of shortage"? Is there not a record production of steel?
§ Mr. GalbraithI understand that in spite of the record production demand is still greater than supply.
§ Mr. HobsonWill the hon. Gentleman say why he continues to answer Questions about the allocation of steel when it is assumed he has no powers?
§ Mr. CallaghanHe has no powers.