HC Deb 20 April 1970 vol 800 cc28-30
61. Mr. Edward M. Taylor

asked the Minister of Technology if he will make a further statement on the progress being made by Upper Clyde Shipbuilders Limited.

The Joint Parliamentary Secretary to the Ministry of Technology (Dr. Ernest A. Davies)

I understand that the company is continuing its discussions with the trade unions on the reduction of its labour force. Negotiations have also begun for the sale of the company's controlling interest in Yarrow (Shipbuilders) Limited to another shipbuilding company.

Mr. Taylor

How serious is the problem? Does not the hon. Gentleman agree that it would be a tragedy for the reputation and prosperity of Clydeside if the "Jervis Bay" were to be towed to Germany for completion? Will he use all the resources of the Department to see how everyone concerned can be brought together to prevent such a tragedy?

Dr. Davies

The hon. Gentleman has expressed himself in strong terms. It is a matter for U.C.S. to determine how best to meet its contractual obligations. It would be sad if the ship could not be delivered from a British shipyard.

Mr. Rankin

Will my hon. Friend bear in mind the serious nature of the decision to reduce the labour force at U.C.S. in view of the fact that 20,000 workers had already to leave Scotland last year to find jobs in England? Does he realise the serious nature of these two factors? In view of them, will he consider pressing the Government to give some form of financial help if this part of the change-over is to be carried through successfully?

Dr. Davies

I am sure that the House is already aware that it is precisely because the employment problem in certain parts of Scotland is proving to be severe that the Government have taken steps to encourage a healthy shipbuilding industry on the Upper Clyde. Hon. Members will recall also that recently my right hon. Friend approved a loan of £7 million to U.C.S. to meet precisely this problem.

Sir K. Joseph

Will the hon. Gentleman confirm categorically what the Minister of Technology then said—that this was absolutely the last loan or grant from the Government to U.C.S.?

Dr. Davies

I cannot add to what my right hon. Friend said on that occasion. The Government intend to take whatever steps they think right at the time to establish a healthy shipbuilding industry on the Clyde and in the United Kingdom generally.