HC Deb 10 November 1969 vol 791 cc33-5
41. Mr. Willey

asked the Minister of Technology what is the total net amount of the guarantees recommended by the Shipbuilding Industry Board under Section 7 of the Shipbuilding Industry Act, 1967.

52. Mr. David Price

asked the Minister of Technology how far the £400 million made available under Section (1) of the Shipbuilding Industry Act, 1967, as guarantees to aid the financing of shipbuilding in the United Kingdom is now committed and whether he proposes to introduce amending legislation to raise the financial ceiling for the aforesaid guarantees.

Mr. Benn

The outstanding liability on guarantees issued or offered is about £335 million. In addition, other applications have been received and I am considering the position in the light of this.

Mr. Willey

As this has proved the cheapest and most effective way of helping shipbuilding, will my right hon. Friend give it favourable consideration and introduce amending legislation as soon as he can?

Mr. Benn

I shall certainly bear in mind what my right hon. Friend has said. This was intended to be a revolving fund, but it has not yet had time to start revolving.

Mr. David Price

Will the Minister bear in mind that I warned him and all his Ministers that if the British shipbuilding industry was to achieve the Geddes target of 2½ million compensated tons a year, the credit scheme would peak well above £400 million, but his junior Minister flatly refused to believe me? I have been proved right.

Mr. Benn

1 accept that on the two occasions we have discussed this matter, the hon. Member said that Government policy would be so successful that it would be necessary for the position to be looked at again.

42. Mr. Willey

asked the Minister of Technology whether he will make a statement on the study of productivity being initiated by the Shipbuilding Industry Board.

Mr. Benn

The Shipbuilding and Ship Repairing Council has now set up a productivity sub-committee consisting of a member of the board with a representative each of management and unions.

Mr. Willey

As the board expressed disturbance and disappointment about the competitive position of the industry, will my right hon. Friend encourage the board to press this ahead as quickly as it can, because this is essential for the industry to hold its own against world competition?

Mr. Benn

I appreciate that. The committee has been set up with agreed terms of reference and work will be set in hand as soon as possible