Q4 Liner

HC Deb 14 June 1967 vol 748 cc551-3

36. Mr. Kenneth Lewis

asked the President of the Board of Trade if he will make it a condition of continued financial assistance to the Q4, that, the "Queen Elizabeth" be kept in service for at least a limited period.

43. Mr. Wingfield Digby

asked the President of the Board of Trade whether, in view of the adverse effect which withdrawal of the Queen liners will have on the prestige of British shipping, he will refuse further financial assistance to the Q4 until the company have reconsidered the withdrawal of the Queens; and what representations he made to the United States Government about the application of the new United States law on fire safety to the Queens.

Mr. J. P. W. Mallalieu

I am not prepared to interfere with the commercial decision reached by the owners. The new United States safety regulations were dealt with in the reply given to the right hon. Member for Kingston-upon-Thames (Mr. Boyd-Carpenter) on 8th February. —[Vol. 740, c. 311–12.]

Mr. Lewis

Is the hon. Gentleman aware that over £1 million was spent on refitting the "Queen Elizabeth" last year? Since the subsidy was given to Cunard on the basis of maintaining the Atlantic run and since, in my view, until the Q4 is going it can only be run in on the Atlantic run by keeping the two ships going, should not the Government have something to say?

Mr. Mallalieu

No, I do not think so —not in the terms the hon. Gentleman is mentioning. Cunard must be in a position to pay its share of the costs of the new "Queen" and to maintain the present "Queens" on the run would, in the company's commercial judgment, be a drain on its resources.

Mr. John Hall

Is it not becoming increasingly obvious that the Q4 is unlikely to prove profitable? What provision is the hon. Gentleman making to cover the potential loss?

Mr. Mallalieu

That is an assumption that should not be made. In its commercial judgment, Cunard thinks that the Q4 can be run profitably.

Mr. Boyd-Carpenter

The American fire regulations have been a major factor in the decision to lay up the "Queen Elizabeth". As British passenger shipping has a better safety record under our regulations than that of any other merchant navy, has not the time come for us to tell the Americans this in no uncertain terms?

Mr. Mallalieu

I agree that the British record on fire regulations has been extraordinarily good. I assure the right hon. Gentleman that very strong representations were made to the Americans about their regulations and that we secured some amendment. I do not think that the regulations in their amended form have any bearing on the decision of the Cunard Line.

65. Mr. Edward M. Taylor

asked the President of the Board of Trade what recent representations he has had from the Cunard Company regarding the financing of the Q4, which is under construction in the Clyde; and if he will make a statement.

64. Mr. Bence

asked the President of the Board of Trade what representations he has received from the Cunard Steamship Company respecting the increase in the cost of construction of the Q4; and what reply he has sent.

Mr. Jay

The company have approached me and discussions are in progress. I am not yet in a position to make any statement.

Mr. Taylor

Is the right hon. Gentleman aware that the recent statement by Cunard caused great anxiety on Clydebank? Is he aware that, apart from an oil rig, the Q4 is the only contract and that its cost escalation is as much the Government's responsibility as it is that of George Brown—[Laughter.]—John Brown? Will he at least give an assurance that, having committed themselves so far, the Government will see that this ship is finished?

Mr. Jay

I always thought that it was John Brown on the north bank of the Clyde, but we are very well aware of these anxieties. We are examining the company's point of view, and I had better not make a statement until we have reached a decision.

Sir Knox Cunningham

Is it true that the "Queen Elizabeth" is to be bought by a Japanese firm? What action does the right hon. Gentleman intend to take?

Mr. Jay

I should not like to answer that without notice. Perhaps the hon. and learned Gentleman will put down a Question about it.