HC Deb 11 June 1973 vol 857 cc980-2
17. Mr. Wingfield Digby

asked the Secretary of State for Trade and Industry what steps he is taking with other EEC countries to counter United States flag discrimination in the context of the forthcoming GATT negotiations.

34. Mr. Moate

asked the Secretary of State for Trade and Industry what steps he is taking to counter flag discrimination in the context of the forthcoming GATT negotiations.

The Minister for Trade and Consumer Affairs (Sir Geoffrey Howe)

Which, if any, shipping problems should be brought into the forthcoming multilateral trade negotiations will require very careful consideration. There will of course be discussions within the Community on the matters to be raised in these negotiations.

Mr. Wingfield Digby

Will my right hon. and learned Friend say whether this matter was raised in the GATT council at the end of May? Will he give an undertaking that he will urge upon our European partners that we should put up a united front concerning serious discrimination?

Sir G. Howe

I can assure my hon. Friend that we regard it as a matter which we should urge upon a number of different people in a number of different forums. It was raised at the GATT council meeting last month but not dealt with successfully. It has been deferred to the council meeting in June.

Mr. Douglas

Will the Minister accept that there is a feeling in the United Kingdom shipbuilding industry that the Americans are unduly subsidising certain categories of ships, particularly liquefied natural gas carriers, sometimes to the tune of 25 per cent.? In the light of the Booz-Allen Report on the shipbuilding industry showing an extensive market for this category of ship, will the right hon. and learned Gentleman consider having discussions between the United States and the United Kingdom Governments to see what can be done to ensure that some share of this type of shipbuilding goes to United Kingdom yards?

Sir G. Howe

Where matters of this kind are likely to result in any significant damage to the interests of this country or to producers in this country, we take the matter up with the Government concerned. I will certainly take account of the point raised by the hon. Gentleman.

Mr. Moate

Is my right hon. and learned Friend aware of the report that at one stage the Common Market Commission had approved a condition restricting to Common Market ships the export of certain surplus butter? Is he satisfied that the Common Market Commission, as distinct from the member countries, is totally opposed to flag discrimination?

Sir G. Howe

The point raised by my hon. Friend is a different question, but our views on the practices to which he refers have been made known to the European Community and to the Commission. Further discussion of them has, as I say, been deferred until the next meeting of the GATT council.

Mr. Benn

Are we to take it from what the Minister has said that there will be discussion with the Common Market authorities before the Government make clear their attitude to the recommendations, or implied recommendations, of the Booz-Allen Report?

Sir G. Howe

No. The right hon. Gentleman is seeking to enlarge one aspect of the matter raised by his hon. Friend. The Booz-Allen Report deals with a much wider range of matters. It has already been the subject of discussion and Questions in this House. The question raised by my hon. Friend is a narrow one and different from that.

Mr. Marten

Is there a Common Market shipping policy? If not, may we have an assurance that if the Common Market moves towards such a policy there will be no discrimination against countries like Norway, which has a great shipping fleet, and others of our old EFTA friends?

Sir G. Howe

The evolution of a Common Market shipping policy has not yet taken place. We will bear in mind my hon. Friend's concern with the possibility of discrimination against Norway in this as in other matters.

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