HC Deb 29 April 1959 vol 604 cc1253-5
6. Mr. Rankin

asked the Parliamentary Secretary to the Admiralty whether he is aware that recent statistics show that the demand for new merchant tonnage is almost non-existent and, in view of this, what steps he is taking to safeguard the future of the shipbuilding industry in this country.

7. Mr. Willey

asked the Parliamentary Secretary to the Admiralty what factors have caused the fall in the tonnage of new shipping under construction and preparing in United Kingdom shipyards.

Mr. T. G. D. Galbraith

I am aware that the demand for new merchant tonnage is very small at the present time, but there has not been any significant fall in the tonnage under construction here and the level of output has been well maintained. The fall relates to ships whose keels have not yet been laid. This fall, due to lack of recent orders, is common in varying degrees to all countries and results in part from the very large number of orders placed in 1956 and 1957 and the current recession in world trade.

An increase in orders is dependent upon world trade recovery, which Her Majesty's Government are taking all possible steps to foster.

Mr. Rankin

In view of the serious nature of that Answer, does the hon. Gentleman not agree it is time that the Government were thinking of framing a definite policy of replacement at an agreed age of ship? What consultations are being held, or are proposed to be held, with the shipowners for that purpose?

Mr. Galbraith

The hon. Member should address any Question concerning shipowners to my right hon. Friend the Minister of Transport.

Mr. Willey

Concerning Question No. 7, is the Civil Lord aware that this figure has fallen for the past seven consecutive quarters and is causing concern? What we want from the industry, particularly in present circumstances, is to increase its rate of output. In view of the present intense competition, will the hon. Gentleman do his best to encourage the industry to endeavour to increase and not reduce its rate of output?

Mr. Galbraith

I agree with the hon. Member about what we want, but it is difficult to increase output when hardly any orders are being placed anywhere throughout the world.

Mr. P. Williams

Whilst I agree with the last part of my hon. Friend's Answer, can he give an undertaking that he will make representations to his right hon. Friend the Chancellor of the Exchequer based upon the viewpoint that depreciation allowances in the future should be based on replacement cost and not on historic cost?

Mr. Galbraith

That also is a question for my right hon. Friend the Minister of Transport.