HC Deb 25 June 1973 vol 858 cc1121-3
16. Mr. Willey

asked the Secretary of State for Trade and Industry what observations on the Booz-Allen Report he has now received from representatives of the shipbuilding industry.

27. Mr. James Johnson

asked the Secretary of State for Trade and Industry what discussions he has had with leaders of the shipbuilding industry concerning the Booz-Allen Report; and if he will make a statement.

The Under-Secretary of State for Trade and Industry (Mr. Anthony Grant)

A number of observations on the Booz-Allen Report have now been received. A meeting has already been held with the Shipbuilders and Repairers National Association and meetings, as necessary, with other interested parties will follow prior to the formulation of our long-term policy.

Mr. Willey

Bearing in mind the fact that the Government have now received the observations of both sides of the industry, will the Minister do his utmost to get a speedy Government decision? The present favourable circumstances will not obtain for ever, and it is very important to ensure that shipbuilders now go all out for orders on the world market. Does the hon. Gentleman have any information about the progress in the talks between Austin Pickersgill and Doxford?

Mr. Grant

The latter point is still under consideration in my Department. It is necessary to come to a conclusion as soon as possible. That we shall do. We gave a deadline of 15th June for the observations, and the CSEU asked for an extension of time. We have given that extension and we have only just received its observations.

Mr. Edward Taylor

Although there are certainly problems that need to be resolved in the shipyards, does not my hon. Friend agree that the general impression of the industry is that it appears that the order book is as full as it has been at any time since the war and that there are very few yards which can now give quotations for 1975 or the early part of 1976?

Mr. Grant

Yes, I agree with my hon. Friend. The present order book position is very healthy, and more healthy than for very many years.

Mr. Douglas

Will the hon. Gentleman not be unduly complacent but recognise that the industry needs massive capital investment if it is to maintain its place in the world and, in particular, to ensure employment prospects in a growth industry which have the utmost impact on regional economic problems?

Mr. Grant

Yes, indeed, and it is considerations such as those which we shall take carefully into consideration in formulating long-term policy.

Mr. Marten

I share the view expressed by the hon. Member for East Stirling-shire (Mr. Douglas) about not being complacent. Would not my hon. Friend agree that we are, perhaps, at the end of a cycle in which other yards in the rest of the world are very full and that we should not be complacent?

Mr. Grant

I never sought to give any impression that we were complacent. My hon. Friend the Member for Glasgow, Cathcart (Mr. Edward Taylor) rightly said that the order book situation was more healthy than it has been for a number of years. We can be pleased about this, without being in any way complacent and taking into account the needs for investment in regard to long-term policy.

Mr. Benn

In view of the records of Governments from both sides of the House in putting public money into this industry, as it is now constructed, without achieving the capital investment required to compete with the Japanese and other foreign shipbuilders, will the Government think carefully about alternative ways of expanding investment, namely, an extension of public ownership?

Mr. Grant

The latter suggestion is probably one of the least attractive to the public or the industry. We are certainly taking into consideration the long-term needs. We hope to avoid the errors that have been made in the past, as the right hon. Gentleman acknowledges.