HC Deb 17 July 1972 vol 841 cc26-8
26. Mr. Skeet

asked the Secretary of State for Trade and Industry what discussions he has had with British shipbuilders about the possible effect upon British trade of the cartel-type arrangement recently negotiated between Japanese and European shipbuilders; and if he will make a statement.

Mr. John Davies

I understand that a number of British shipbuilders are having discussions with their European counterparts about a proposed agreement between certain Japanese and EEC shipbuilding firms. I am not aware that any agreement has been concluded.

Mr. Skeet

Would my right hon. Friend agree that there is a vast overcapacity in the building of very large crude carriers and would he accept that a certain amount of exchange of information on the subject would help to rationalise the position? Would he further accept that the elimination of shipbuilding subsidies by Governments would be the best solution ultimately?

Mr. Davies

As I said, the Government will keep very closely in touch with those British shipbuilding concerns which are having discussions currently with their European opposite numbers. Concerning the abatement of support to the shipbuilding industry, my hon. Friend is aware that this matter is currently under discussion and negotiation in the OECD.

Mr. Millan

Would it not give a considerable fillip to the British shipbuilding industry if the Government made a decision on representations made to them by the Chamber of Shipping and the British Shipbuilders Federation about a scheme of incentives to British ship-owners to place orders in British shipyards? When shall we have an announcement about that?

Mr. Davies

This matter is under careful consideration, but the proposals put forward by the shipping industry, in concert with the shipbuilding industry, clearly present problems. Great help has been given and is being given to the shipbuilding industry, as the hon. Gentleman knows. Therefore, any further assistance has to be seen in the context of what general assistance can be given. But I am very interested in the proposals made to me and I shall certainly respond to them shortly.

Dame Irene Ward

Will my right hon. Friend make a statement today in answer to Question No. 30? Is he aware that all of us concerned about shipbuilding and shipping have an interest in what he will say? As it has taken a very long time to approach Question No. 30, will my right hon. Friend make a statement? During the Committee stage of the Industry Bill recently, my right hon. Friend's junior Ministers did not seem to be as interested in helping shipbuilding and shipping as most of us who represent the affected areas would like. Will my right hon. Friend make a statement on Question No. 30 at the end of Question time?

Mr. Davies

Hesitant as I am, and fearful to engage in controversy with my hon. Friend—

Dame Irene Ward

I like controversy.

Mr. Davies

—I consider that my right hon. Friend, on the contrary, has shown throughout the utmost concern in trying to support shipping and the shipbuilding industry. I could not, on that account, undertake to make a separate statement on the question, when the originator of the Question—if my eyes do not fail me—is not present in the Chamber