HC Deb 12 February 1968 vol 758 cc919-22
3. Mr. Wingfield Digby

asked the Minister of Technology how many shipbuilding yards, launching what annual tonnage, are situated outside the development areas, making them ineligible for regional employment premium payments and therefore placing them at a disadvantage with other yards; and what steps he intends to take to restore the balance.

The Joint Parliamentary Secretary to the Ministry of Technology (Mr. Gerry Fowler)

About 30 yards, which over the last five years have together launched less than 30,000 gross tons a year of merchant ships of 100 tons or over. I am not convinced that the shipbuilding industry should be treated differently from others as far as regional employment premium is concerned, but we have advised shipbuilders outside development areas with special local problems to submit evidence to the Hunt Committee.

Mr. Digby

Does the hon. Gentleman realise that in the shipbuilding industry this system of yet further advantages for development areas is working extremely unfairly, particularly at a time of highly competitive tendering? Will he take real notice of this grievance?

Mr. Fowler

We have taken notice of the submissions made to us, and, as I have said, we have advised firms to make submissions to the Hunt Committee. There is no evidence that the big yards mainly in the development areas have been taking an above average proportion of the orders for which small yards also compete.

Mr. Rankin

But is my hon. Friend aware of the importance of good relations between men and management in leading to the success of the shipbuilding industry, and is he aware that due to this last Friday Fairfields declared a profit for this year of £300,000 and are doing in two years what it was originally felt could not be done in five?

Mr. Fowler

I fully accept that. I might add that the effect of uncompetitive methods, or a decline of local markets in certain areas which shipyards were founded to serve must not be blamed on the R.E.P.

Mr. David Price

Is the Minister aware that his substantive reply only covered merchant shipping and not naval work? Is he aware that one of our most successful exporters is a relatively small company, Vosper-Thorneycroft, which has a better export record in naval craft than any big yard and is not in a development district? Its work is labour-intensive and it has a legitimate grievance. Will he look at it?

Mr. Fowler

I am visiting Vosper-Thorneycroft in the near future. When British shipbuilders are competing with world competition, it is not clear that R.E.P. is a disadvantage to them.

7. Mr. Willey

asked the Minister of Technology what was the value of orders taken by the British shipbuilding industry in 1967.

Mr. Fowler

The value of orders for new construction taken in 1967 is estimated at £151 million. Information is not available about orders taken for repair work.

Mr. Willey

Has the very welcome increase in orders in the last quarter of last year been maintained this year?

Mr. Fowler

It is too early to say what is the pattern for this year. As my right hon. Friend is no doubt well aware, if often takes some time to bring an order to fruition, and we still cannot judge what is the post-devaluation situation in ordering.

Mr. David Price

Will the Minister bear in mind that although there was a very good increase in orders in the last quarter, they were largely concentrated on super-tankers, and this gives rather a bias to the general increase in orders, which both sides of the House look to?

Mr. Fowler

I entirely agree with the hon. Gentleman. The 1967 figure includes £34 million-worth of orders for five very large tankers. To some degree, this distorts the figures. The general order position is not nearly as encouraging.

Mr. Blenkinsop

While we are all delighted that there have been the new orders at the end of last year and that orders are coming in now, can my hon. Friend do anything to speed up turning the orders into work in the yards? There is great anxiety about the delay on the design and preparation side.

Mr. Fowler

That is a matter for the yards' management. I cannot urge them to change their management procedures in this way.

Mr. McMaster

Is the Minister aware that the picture has been greatly distorted by a few large tankers and that because of the shortage of orders for smaller ships heavy redeployment has been forecast by Harland and Wolff, one of the largest yards in the country? Will he do something to speed up the placing of immediate orders to avoid such redundancies?

Mr. Fowler

Much as we desire to see an, increase in the number of orders placed, we are not responsible for the orders placed by shipowners. We can, and do, encourage them to place orders with British yards, but we cannot make them do so.

47. Mr. R. C. Mitchell

asked the Minister of Technology what requests for financial aid he has received from those shipbuilding firms who do not receive the regional employment premium; and if he will make a statement.

Mr. Fowler

My right hon. Friend has not been asked by the Shipbuilding Industry Board to approve any loans or grants to such a firm, but I understand that the Board has a number of such cases under consideration.

Mr. Mitchell

Would the Minister not agree that the differentiation caused by the regional employment premium does not make sense in the shipbuilding industry? Would he in fact devise some method of giving it to the industry as a whole rather than differentiating between the regions?

Mr. Fowler

This matter has been dealt with in reply to Question No. 3. I think my hon. Friend would agree that the Government's policy of attempting to take new work to the development areas is a sensible one, and we cannot make exceptions for particular industries without strong evidence indeed.

Mr. McMaster

In view of the recommendations for a consolidation of the shipbuilding industry, will the Government consider publishing a plan for the further amalgamation and reconstruction of the shipbuilding industry?

Mr. Fowler

I do not think that this matter needs a plan. We are hoping that the industry will produce proposals with encouragement from the Shipbuilding Industry Board. That is what the Board was set up to do.