HC Deb 28 November 1962 vol 668 cc396-8
18. Mr. Ridley

asked the Minister of Transport if he will make representations to those Commonwealth countries with substantial shipyards which are subsidised by them, in view of the effects of their action upon the United Kingdom shipbuilding industry.

Vice-Admiral Hughes Hallett

I take it my hon. Friend has in mind Australia and Canada.

Both Governments have already been made aware of our concern at the effect of their subsidies on our shipbuilding. We shall continue to discuss this matter with Canada. As regards Australia, as I said to my hon. Friend on 27th June, their subsidies are of long standing and were started primarily for strategic reasons. We are not satisfied that it would be useful to make further representations at present.

Mr. Ridley

In view of the professed love for Commonwealth trade, is not this a respect in which we could make some improvement to help our shipbuilding industry? Will not my hon. and gallant Friend call a conference of Commonwealth countries interested in this matter to try to work out a fair and equitable basis for the shipbuilding industry? Is not this a case of dealing not with foreigners but with our own Commonwealth countries who should be willing to abide by the rules?

Vice-Admiral Hughes Hallett

We would consider calling a conference if we thought that anything would be gained by it, but the facts of life about this matter are that we cannot prevent another country from subsidising what it regards as an infant industry in order to get it started.

Mr. Bence

Would not the best contribution to a solution of this problem be an intensive drive to increase Commonwealth trade with the United Kingdom?

Vice-Admiral Hughes Hallett

That raises rather wider questions.

Mr. Marten

Is my hon. and gallant Friend aware that the Norwegian-American Line tendered for two passenger liners round Europe, and the contract in fact went to the French shipyards because they put a subsidy of 20 per cent. in the price, whereas we did not put in any subsidy? Will my hon. and gallant Friend make representations about this to the French Government, because, after all, they are in the position, vis-à-vis our negotiations with the Six, of being our fiancée?

Vice-Admiral Hughes Hallett

With respect to my hon. Friend, I do not think that his supplementary question arises from the main Question which is essentially concerned with Commonwealth countries. I can, however, confirm what he says. It is a fact that that contract was lost as a result of the subsidy paid by the French Government.

Mr. Strauss

Is the conclusion to be drawn from the Parliamentary Secretary's Answer to this and earlier Questions that there is nothing that the Government intend doing, or which they think they can do, to help the shipping and shipbuilding industries in their present plight?

Vice-Admiral Hughes Hallett

The right hon. Gentleman would be drawing altogether too sweeping a conclusion if he were to say that, and it would be wrong to imagine that the representations which we make on this subject are entirely ineffective, because they are by no means so. In fact, it is satisfactory to recall that the great majority of the world's shipping is still free.