HC Deb 11 July 1967 vol 750 cc407-8
27. Mr. Blenkinsop

asked the Minister of Technology whether he will make a statement on the progress of grouping arrangements in the shipbuilding industry.

Mr. Dell

Four Tyne companies have announced their intention of merging their shipbuilding activities on this river. Working parties are studying the organisation on the Upper Clyde and Wear, the first covering six yards and the second five yards. The Shipbuilding Industry Board has been and is cooperating with the firms concerned as well as with others who are still conducting confidential discussions about mergers.

Mr. Blenkinsop

In welcoming the lead given on the Tyne in making use of the valuable proposals contained in the Government's Shipbuilding Industry Act, may I ask my hon. Friend whether he can say anything about the marine engine industry in particular as part of the grouping facilities and whether any statement can now be made about it?

Mr. Dell

I certainly welcome the lead which has been given by the Tyne shipbuilders in the matter of grouping. The question of marine engines is under consideration by the Shipbuilding Industry Board and I am not yet in a position to make a statement.

Mr. Ian Lloyd

Is the hon. Gentleman aware that a recent report has disclosed that the Japanese shipbuilding industry, which has been building ships of 150,000 to 200,000 tons, is now expecting to have surplus capacity in this range fairly soon, and has initiated work on new yards to build ships in the 500,000-ton range? Is he going to make ure that we do not join the wrong race?

Mr. Dell

Certainly it is of the utmost importance that we have a shipbuilding industry which knows the market it is concentrating on, and that it concentrates on that market. This is one of the objects of regrouping, that the industry will be able to make marketing arrangements which can make decisions about exactly that sort of problem.

Mr. Heffer

Can my hon. Friend indicate to the House what progress has been made with regard to grouping the shipyards on the north-west coast, particularly in relation to Cammell Laird and Vickers?

Mr. Dell

Grouping of shipyards on the north-west coast is not a matter of high priority, although one would expect that in the second stage of development that, too, will be an area in which groupings are likely.

Mr. Edward M. Taylor

Would the hon. Gentleman say something about the progress on Clydeside? Is he aware of the concern on Clydeside that the very valuable work being done among the upper reaches firms may preclude the possibility of mergers along both the upper and lower reaches?

Mr. Dell

I would personally hope that it would not preclude it, but with any of these groupings it may be necessary to have two stages of development. I do not think myself that the grouping of firms on the upper Clyde, for example, or of firms on the lower Clyde would later preclude a group for the whole of that area.