HC Deb 27 June 1962 vol 661 cc1155-6
26. Mr. Ridley

asked the Minister of Transport what representations he has made to the Government of Canada over the 40 per cent. subsidy it pays towards the cost of ships built in Canadian shipyards for Canadian owners, in view of its effect on the United Kingdom shipbuilding industry.

Vice-Admiral Hughes Hallett

We have made it clear to the Canadian Government that we view with concern the effect which the subsidy regulations may have on British shipbuilding and exports.

Mr. Ridley

Is my hon. Friend aware that we had 36 ships ordered from Canada and that now there are none on order for building in this country? In view of the attitude which the Canadian Government are taking to the negotiations with the European Economic Community, will my hon. and gallant Friend point out that this is not at all in the spirit of the free trade which they are so pleased to proclaim in other respects?

Vice-Admiral Hughes Hallett

Yes, Sir. We are only too well aware of the effect which these subsidies have had on the orders placed in this country, and we are still discussing with the Canadian authorities the general principle involved. I can assure my hon. Friend that we shall continue to keep in close touch with the Canadian authorities to ensure that the regulations are administered in a way which will be the least harmful to British shipbuilders.

Mr. Ridley

Can my hon. and gallant Friend say on which products or items of trade he is threatening taking retaliatory action unless something is done about this?

Vice-Admiral Hughes Hallett

There is no question of retaliatory action at present under consideration.

Mr. Mellish

Is not the hon. and gallant Gentleman aware that our shipbuilding industry needs much more support than it is getting from this Government? Is he aware that, on the one hand, we have American discrimination going on against our own people, and now we have discrimination by members of our own Commonwealth? All we are getting from the Government is platitudes about having discussions, but we are never getting any results. Can he say when we are likely to get some results?

Vice-Admiral Hughes Hallett

If the hon. Gentleman can suggest some method by which we can counter the subsidies paid by these countries, he will be achieving something which nobody has yet been able to do. It is a very difficult problem to meet these foreign subsidies.