Scrap-and-Build Scheme (Hansard, 8 May 1963)

§ 25. Mr. P. Williams
asked the Minister of Transport why he will not adopt a scrap-and-build scheme.

§ Vice-Admiral Hughes Hallett
We have not firmly ruled out this possibility, but the arguments against such a scheme are stronger than is generally realised. The position is very different from that which prevailed between the wars.

§ Mr. Williams
Will the Parliamentary Secretary recognise that, whilst I am not particularly an advocate of this proposition, the important thing now is that the Government should come to a conclusion and express their view publicly? I believe that at the moment orders are being held up pending a decision by the Government on whether or not to adopt this scheme. Therefore, will the Government publicly announce, in the shortest possible time, whether or not they support such a scheme as this?

§ Vice-Admiral Hughes Hallett
We hope to publish our decision at the earliest possible moment.

§ Mr. Strauss
Has there been any request by the shipping industry generally for the adoption of such a scheme, or is the industry very divided on the merits of the scheme?

§ Vice-Admiral Hughes Hallett
The Shipbuilding Conference and the trade unions concerned in the industry have both asked for a scrap-and-build scheme on more than one occasion.

§ Mr. McMaster
When considering this scheme, will my hon. and gallant Friend bear in mind the social consequences of heavy unemployment in the shipbuilding areas, particularly in Northern Ireland?

§ Vice-Admiral Hughes Hallett
Yes, Sir. We are deeply aware of that.

§ Sir L. Ropner
Is not my hon. and gallant Friend aware that the shipping industry has on more than one occasion expressed a complete disapproval of the introduction of a scrap-and-build scheme? Could he not, therefore, announce that this scheme will not be brought into effect?

§ Vice-Admiral Hughes Hallett
I am not in a position to make an announcement today, but I am aware of the point made by my hon. and gallant Friend. That, indeed, was one of the things I had in mind when I said in my original Answer that the arguments against such a scheme are stronger than are generally realised.