Shipbuilding

HC Deb 09 July 1973 vol 859 cc1021-2

26. Mr. Willey

asked the Secretary of State for Trade and Industry whether he will make a statement on Government aid for the shipbuilding industry.

Mr. Peter Walker

Aid to the shipbuilding industry is available under different sections of the Industry Act 1972, and totalled £21.2 million in the financial year 1972–73.

Mr. Willey

Does the right hon. Gentleman appreciate that we are awaiting the Booz-Allen Report? Would he at least say whether the Government accept its main contention, namely, that to be fully competitive the British shipbuilding industry must have a high level of capital support? He has spoken of the Industry Act 1972, but does he not realise that that is not sufficiently specific to give the industry confidence?

Mr. Walker

As the right hon. Gentleman knows, my right hon. Friend the Minster for Industrial Development made a statement on this subject when he pointed out that already a substantial number of the figures in the Booz-Allen Report had been shown not to apply in the short term because of the big increases in orders. We are now discussing the report with the unions and with the industry itself to ascertain what would be a sensible policy for the future.

Dame Irene Ward

Is my right hon. Friend now able to say when the Government will have made up their minds about the Booz-Allen Report? Will he remember that the shipbuilders will want a debate in the House before any decisions are implemented by his Department? May we have that pledge, which is important?

Mr. Walker

A debate is a subject for my right hon. Friend the Leader of the House.

We asked for written observations on the report and these have all now been received. A range of talks is now taking place; for example, we met the unions last week. I expect soon to be in a position to give our observations on the report.

Mr. James Johnson

Would the right hon. Gentleman confirm that the two main items of the Booz-Allen Report were the lateness of deliveries and, even more significant, the inefficiency of the industry's management?

Mr. Walker

I am pleased to say that there has been a substantial improvement in both management and industrial relations in a number of major yards. The order books for almost every major yard are incredibly better than they have been for years, but it is vital that these ships should be delivered on time.