HC Deb 13 February 1962 vol 653 cc1093-5
2. Sir L. Ropner

asked the Chancellor of the Exchequer whether the arrangements for financing export contracts as announced by him will enable foreign ship owners to obtain credit for building ships in this country on terms which entail preferential treatment to the disadvantage of British ship owners.

Mr. Selwyn Lloyd

No, Sir. The position of the British ship owner is not worsened by the new arrangements and I do not believe that foreign owners in general will be at an advantage.

Sir L. Ropner

Is my right hon. and learned Friend aware that the Governments of other countries are finding a large number of ways of financially assisting shipbuilders and ship owners? Will he make inquiries into this practice and try to follow the example of other nations?

Mr. Lloyd

I certainly will do that, and I will also consider any evidence which my hon. and gallant Friend has to give me. The British owner enjoys the 40 per cent. investment allowance, which is a substantial assistance, but the scheme about which my hon. and gallant Friend is asking relates to exports.

Mr. Shinwell

Does not the right hon. and learned Gentleman realise by now that this 40 per cent. investment allowance applies only when profits are earned, and that shipping companies which do not make profits do not derive any advantage from it?

Mr. Lloyd

That is true over a temporary period, but not over a term of years.

25. Mr. Ridley

asked the Chancellor of the Exchequer whether credit at 5½ per cent. fixed, in accordance with the scheme he announced on 23rd January, 1962, will be available for British ship owners building in British shipyards.

Mr. Selwyn Lloyd

No, Sir.

Mr. Ridley

May I ask my right hon. and learned Friend whether he is aware that the setting up of this scheme is of great benefit to exports; that British ships also earn a very large amount of foreign currency which could be regarded as an export; and that what he is doing is discriminating against British shipping to the advantage of foreign-owned shipping? Will he go back to the City and try to arrange terms for our own ship owners as advantageous as those for foreign ship owners?

Mr. Lloyd

My hon. Friend will have heard the reply I made earlier to my hon. and gallant Friend the Member for Barkston Ash (Sir L. Ropner) about this matter. This was a scheme for exports and I am glad that it has been accepted as being of benefit. I am very ready to examine any information about how foreign ship owners could be in a better position than British ship owners. I remind my hon. Friend of what I said about investment allowance.

Mr. Shinwell

Is the right hon. and learned Gentleman aware that the proposal made by his hon. Friend would stimulate British shipbuilding, because many ship owners would be very glad to scrap some old vessels and have new ones built, if they could find the necessary credit, and this proposal would assist them?

Mr. Lloyd

I am aware of that fact, but the scheme about which I have been questioned was designed to encourage exports and was, I think, of benefit.