New Cunard Liners (Hansard, 3 June 1959)

§ 31. Mr. Lipton
asked the Minister of Transport and Civil Aviation what recent communication he has received from the Cunard Company about the construction of a new passenger liner; and if he will now make a further statement.

§ Mr. Watkinson
I have within the last few days received a communication from the Cunard Company, which I am now studying. I am not in a position to make a further statement until this study is completed.

§ Mr. Lipton
Before considering the Cunard Company's request for financial aid, will the Minister give an assurance that the possibility of the Government taking up equity shares in the company is not entirely excluded?

§ Mr. Watkinson
I think that the hon. Gentleman knows the position. It is, as the chairman of the Cunard Company himself stated last week, that there is no commitment on either side at the moment. Therefore, what I have said is correct—the Government are considering the proposition put forward by the Company.

§ Mr. McMaster
As public money is involved, and in view of the fact that there has been unemployment in the shipbuilding industry and that the yards are of economic importance to the country, will my right hon. Friend undertake that both these vessels will not be built in the same yard?

§ Mr. Watkinson
I do not want to disagree with my hon. Friend, but I must make it quite plain that there is no commitment at all to put any Government money into building these liners until we have had a good deal more time to see what the proposition really means in terms of the North Atlantic, and in terms of shipbuilding finance.

§ Mr. Shinwell
Before the right hon. Gentleman agrees to provide finance for the construction of another Cunarder, will he operate on the principle that nothing should be provided for the Cunard Company that is denied to other shipping firms that are important to the maritime interests of the country? Furthermore, before agreeing to any financial arrangements, would the Minister make some inquiry as to why the company was unable itself to replace the old Cunarders? For example, will he inquire into its operations in real estate, and its actual financial position in that regard?

§ Mr. Watkinson
The right hon. Gentleman will remember that the building of the "Queen Mary" and "Queen Elizabeth" was financed to some extent by Government loan, which was fully serviced and fully repaid. It may be that some similar arrangement can be made for these ships. As to why the Cunard Company cannot manage this building with its own money, it is, of course, facing the very heavily subsidised competition of the American, the French and the Italian merchant marine, and that is a very difficult proposition.