HC Deb 27 January 1959 vol 598 cc884-6
49. Mr. Short

asked the Prime Minister what proposals Her Majesty's Government have for providing additional employment in ship-repairing and shipbuilding in the North-East as a result of the evidence submitted to him during his recent visit.

The Prime Minister

Although a reduction in the volume of sea-borne trade and the laying up of ships has affected employment in the whole industry, the shipbuilders on the north-east coast have nearly one half of the total orders held by the industry in the United Kingdom and this will provide work for some years.

The orders, however, are not evenly spread; and repair firms have less work than formerly. The Government are well aware that the remedy is to bring about an increase in international trade and are doing their utmost to increase it by every means open to them.

Mr. Short

The Prime Minister has given a very general answer which does not mean very much. If, as he says, his tour of the North-East was not just a pre-election vote-catching tour, are we not entitled to expect some more tangible results in relation to our employment problem? Is the right hon. Gentleman aware that when he visited my constituency he omitted the usual courtesy of informing the local Member of Parliament? May I ask why he confined himself to the soft lights and the red plush of the Station Hotel and did not ask me to take him round some of the rotten, decaying slums in which thousands of people are living in Newcastle after eight years of Tory rule?

The Prime Minister

With regard to the first part of the hon. Gentleman's supplementary question, I think the answer I gave gives the facts. The only real remedy for the eventual increase of total shipbuilding is the increased use of shipping by the increase of world trade, by the work done by the International Monetary Fund, by the great increase in credit which we have been able to give as a result of our stronger position, by the great credits given to India and so on. There is also the record work in relation to the guarantees given under the Export Guarantees Acts. All these moves are devised to increase the total demand for shipping.

With regard to the second part of the hon. Gentleman's supplementary question, if I did him a discourtesy I very much regret it. I moved through a great number of constituencies, and I hope he will accept that I meant no discourtesy to him.

With regard to the third part of the hon. Member's supplementary question, I have a fairly wide knowledge of the area. I have seen it for many years. Although there are bad points, slums and places that need improvement, I think a very great improvement has been made in the last 20 years, and from the housing point of view I am not ashamed of the contribution that my party has made.

Mr. Gaitskell

Is the Prime Minister aware that a major contribution to the world recession which has affected ship-repairing was made by the credit and monetary policy of Her Majesty's Government in 1957? With reference to his announcement about the number of new factories to be set up in this area, may I ask him why it was not possible to take action of this kind earlier, and so provide the employment which is now so badly needed?

The Prime Minister

The two parts of the right hon. Gentleman's supplementary question hang together. He objects to the monetary policy we followed in 1957. We have debated that often. I feel that the action which we took was necessary and alone provided the basis for the great increase in credit which we are now able to give.

Mr. P. Williams

To return to the question of shipbuilding, would my right hon. Friend agree with the point of view that there are three levels at which action should be taken; first, by the Government, action which is already being taken; secondly, by management in making as modern as possible the yards of the North-East, which is largely being done already; and, thirdly, by the unions in helping to eliminate restrictive practices?

The Prime Minister

My hon. Friend has very succinctly stated that this problem, like so many other problems, will be solved only by the efforts of everybody concerned.