§ 15. Mr. Hector Hughesasked the Chancellor of the Exchequer if he is aware that the present Bank Rate plus the Export Credits Guarantee Department charge imposes on British shipbuilding firms an addition of at least 10 per cent. extra on the cost of a new ship, that this is handicapping British shipbuilding firms in competing with foreign firms for orders and causing unemployment in British shipyards; and if he will state his plans for releasing British shin-yards from those special burdens which are having these results.
§ The Chancellor of the Exchequer (Mr. Selwyn Lloyd)I have nothing to add to what I said in the House of Commons on 7th November, and what my hon. Friend the Minister of State, Board of Trade, said on 10th November.
§ Mr. HughesDoes not the right hon. and learned Gentleman realise that in sniping at shipbuilding he is damaging not only one of Britain's major industries but the auxiliary industries associated with it? Would it not be wise for him to discriminate so that, if Britain is to enter the Common Market, she can enter it on a basis which will be just and fair to industries such as the shipbuilding and ship-repairing industries and their auxiliaries?
§ Mr. LloydI assure the hon. and learned Gentleman that there is no question of my trying to snipe at the shipbuilding industry. When one comes to the question of preferential treatment for a particular industry much wider problems arise.
§ Mr. ShinwellAre not the shipbuilding industry and its allied industry—shipping—in a very precarious condition at present, suffering from unfair competition from foreign shipbuilding countries? Is it not desirable for the right hon. and learned Gentleman to look at this matter again and try to render some assistance?
§ Mr. LloydI certainly agree with the right hon. Gentleman that this is a matter which we have to keep constantly in mind, but when one comes to the actual methods of discriminating in favour of a particular industry one gets into rather troubled waters.
Mr. H. WilsonSince the right hon. and learned Gentleman has said twice now in answer to supplementary questions that trouble is involved when discriminating in favour of a particular industry is considered, will he say whether his mind is closed or not, as it seemed to be last week, to the idea of special help for financing capital goods exports generally, of which shipbuilding would be an important part?
§ Mr. NabarroWill my right hon. and learned Friend bear in mind that former Chancellors of the Exchequer have discriminated heavily in favour of shipbuilding by granting, quite unilaterally, a 40 per cent. investment allowance for shipbuilding, which is a high rate applicable to no other form of capital equipment?