HC Deb 05 March 1969 vol 779 cc403-5
8. Mr. Brooks

asked the Minister of Technology whether he will introduce legislation, similar to that enacted in the United States of America, details of which have been sent to him, to ensure that British shipowners have their vessels repaired in home yards.

Mr. Fowler

No, Sir. As my hon. Friend the Minister of State, Board of Trade, said on 19th February, we do not consider that this would be in our ultimate interest.—[Vol. 778, c. 124.]

Mr. Brooks

Does my hon. Friend agree that it can hardly be in our ultimate interest to have a system of discrimination practised by a number of countries against British ship repairing yards? Surely the time has come either to take an initiative to alter the terms of such Acts as the United States Tariff Act, 1930, and try to get rid of discrimination, or at least to give the British ship repairer some equality of treatment?

Mr. Fowler

On the one hand, the United States flag fleet is relatively small; it is heavily subsidised and does not participate in international cross-trades in the same way as the British fleet; so the conditions are different. On the other hand, the aim of British ship repairers should be to become more competitive. This is one field in which the United States is not notably competitive, and it is hardly an example to follow.

Dr. John Dunwoody

Does my hon. Friend agree that because more and more British ships are being repaired abroad today the Government face the alternative of providing a positive incentive to this industry or the stark reality of mass unemployment in the towns that are almost entirely dependent on ship repairing?

Mr. Fowler

To my mind, the industry does not require an incentive other than that provided by the commercial situation to ensure that it becomes more competitive. I hope that it will, and that we shall continue to maintain and increase our share of world ship repair.

Mr. David Price

Does the Minister agree with the Geddes Report when it identifies the fact that British ships sail the oceans of the world and should be repaired where commercially convenient, and that to tie repairs of British ships to British yards by legislation, as the Question suggests, would be detrimental to British shipping and the invisible earnings it brings into this country?

Mr. Fowler

I agree entirely with the hon. Gentleman. We have considered the interests of the shipping industry and its earnings as well as the interests of the ship repair industry. Many British ships trade far from our shores. It is often impracticable for them to be repaired in the United Kingdom.

9. Mr. Brooks

asked the Minister of Technology whether he will set up an inquiry into the ship repairing industry with the aim of grouping or regrouping the industry to ensure greater efficiency.

Mr. Fowler

The Shipbuilding and Shiprepairing Council set up under the Shipbuilding Industry Act, 1967, will no doubt advise us if it considers Government initiative in this matter useful and timely.

Mr. Brooks

Does my hon. Friend agree that it is somewhat anomalous that, at a time when various schemes for rationalisation affecting our ports, shipbuilding and shipping industries generally are being pursued, this important aspect of these various trades has so far not been subject to any comprehensive inquiry?

Mr. Fowler

There is nothing anomalous in this at all. The Shipbuilders and Repairers National Association knows of our interest in the future development of British ship repairing and of our willingness to arrange discussions if it is felt that they would be useful.

Mr. McMaster

Has not the ship repairing industry in Britain rather become the orphan of the British shipping and shipbuilding industries? Will the Minister see whether the same type of assistance can be given to the British ship repairing industry as our shipbuilding industry is receiving?

Mr. Fowler

As the hon. Gentleman knows, the reorganisation and assistance provided under the 1967 Shipbuilding Industry Act does not cover ship repair. Any discussion about structural changes in the ship repair industry, the possibility of action by the I.R.C. or under the Industrial Expansion Act, would need consideration. But my view is that commercial competitiveness is the key to this matter.

Mr. Heffer

On commercial competitiveness, is my hon. Friend aware that in some yards operating in other parts of the world the workers get such ridiculously low wages that it is impossible for our workers to compete with them? Is there not a need to look at this matter again and consider giving real assistance to the ship repairing industry? I should know, because I worked in the industry for many years.

Mr. Fowler

Many factors affect the possibility of attracting particular repair orders to British yards. One is our geographical situation. On long tanker runs it is demonstrable that many companies prefer to undertake repairs halfway on the return journey. We are badly situated in this respect.