HC Deb 16 April 1969 vol 781 cc1147-9
31. Mr. Leadbitter

asked the Minister of Technology what is the total tonnage of shipbuilding under construction in the Tyne, Wear and Tees shipbuilding yards; what is the value of new orders for shipbuilding; and if he will make a statement on the levels of change during the past four years.

Mr. Fowler

At the end of February 470,000 gross tons of merchant ships were under construction. Orders taken in these yards since 1st January, 1968, have been over £160 million. New orders have risen sharply since 1967 and in 1968 were almost as much by tonnage as in 1965. The rate of ordering has increased further in January and February, 1969, and the total order book is now the highest on record by tonnage.

Mr. Leadbitter

My hon. Friend's Answer represents a congratulation throughout the whole region to which I have referred and to the industry generally. However, will he bear in mind that right hon. and hon. Members on both sides of the House must congratulate the Government on doing something quite unique in this industry in recently saving two shipbuilding yards, one of them on the Tees? However, there is concern in the industry——

Mr. Speaker

Order. Questions must be brief, even on the North Country.

Mr. Leadbitter

However, there is concern and I should like to ask my hon. Friend whether he can assure the House that the substantial financial support given by the Government is sufficient to sustain the industry in world markets and keep it competitive?

Mr. Fowler

I assure my hon. Friend that the guarantee arrangements under Section 7 of the original Shipbuilding Industry Act, now extended, ensure that British owners ordering from British yards can obtain credit terms at least as favourable as those offered by overseas yards. In addition, the S.I.B. makes loans and grants available to the shipbuilding industry. We have given substantial help to the industry and will continue to do so.

Mr. Shinwell

Is there not a danger that the spate of orders for conventional types of ships, however substantial, may dry up? Is it not important, in view of the development of the container type of ship and the demand for ships of more than 200 tons capacity, that the shipyards in that area and the Shipbuilding Industry Board should prepare for eventualities, particularly over the provision at ports of adequate shipyards with the necessary equipment?

Mr. Fowler

When my right hon. Friend said 200 tons, I take it that he meant 200,000 dead weight tons. I share his view that the industry nationally, not just in one region, should be looking to the provision of facilities for building these very large tankers. Indeed, this is already happening in Northern Ireland. I hope that we shall have other propositions to consider.

Dame Irene Ward

Would it not be a good idea, to spread the use of the nuclear boom in shipbuilding, if we could hear from the Government when we are to get on with building a nuclear ship on the North-East Coast? We have continually been asking for an answer to this question. Is not an answer necessary? Would it not add to the Government's record?

Mr. Fowler

If the hon. Lady would look at HANSARD for yesterday she would see that I answered a Question on the general point about the provision of a nuclear ship. Unhappily I cannot make a statement on our policy about a nuclear ship for the North-East Coast.