HC Deb 13 December 1966 vol 738 cc240-1
32. Mr. Wingfield Digby

asked the Minister of Technology what is the latest progress made in mergers between shipbuilding firms, as recommended by the Geddes Report.

The Joint Parliamentary Secretary to the Ministry of Technology (Mr. Peter Shore)

The timetable in the Geddes Report envisages that expert studies should take place in the first half of 1967 and that groupings should be formed about the third quarter of next year. I understand that a number of companies are making useful progress to this end.

Mr. Digby

To facilitate these mergers, is it not necessary for the Government to speed up their own part in the Geddes proposals, particularly in view of what could be regarded as a deteriorating situation, with orders not coming in as fast as we should like?

Mr. Shore

I appreciate the need for speed in the measures required to help the shipbuilding industry, but so far the Government have, I think, kept pretty rigorously to the timetable laid down in the Geddes Report.

Mr. Shinwell

In view of the vital importance of the shipbuilding industry in the national economy, would my hon. Friend ask his right hon. Friend to ask the Leader of the House whether it would be possible to have a debate on shipbuilding immediately after we return from the Christmas Recess?

Mr. Shore

I am sure that that suggestion has been heard by my right hon. Friend and will be passed on to his right hon. Friend, but we are hoping that not just a debate but the legislation will not be long delayed when we resume after the Christmas Recess.

Mr. David Price

Is the hon. Gentleman aware that many private negotiations are taking place towards the Geddes end of mergers? Is he also aware that it is emerging that the Geddes pattern of mergers is not necessarily the last answer and that some of the smaller companies are proving to be financially sounder than some of the large companies? The merger pattern may well be different from that so precisely proposed by Geddes.

Mr. Shore

I am aware that certain mergers of a rather smaller kind than those envisaged in the Geddes Report have taken place and, indeed, are being considered. But I think that it would be right to wait until the Shipbuilding Industry Board has had time to consider various proposals before drawing any conclusions.

Mr. Blenkinsop

Can my hon. Friend say when the new financial proposals for assistance towards mergers can be announced as recommended in the Geddes Report?

Mr. Shore

As I have said, we are hoping to bring before the House soon after the recess the legislation which will enable the Shipbuilding Industry Board to be established on a statutory basis and then to make loans and grants available to the new groups.