HC Deb 01 December 1975 vol 901 cc1237-9
10. Mr. Trotter

asked the Secretary of State for Industry what plans he has to assist the shipbuilding industry to secure future orders and ensure its continued prosperity following his recent discussions with both sides of the industry.

Mr. Varley

My discussions with the industry are still continuing. I am not yet in a position to make an announcement.

Mr. Trotter

Can the Minister explain to the House why, after two years in office, the Government still have no policy at all for the shipbuilding industry, apart from nationalising it? Is he aware that while he is obsessed with nationalisation the shipbuilding industry is sharing the problems of the rest of the Western European shipyards, and that the longer the tackling of those problems is put off the more difficult it will be for the industry? While the Government fiddle, our shipyards are operating in a vacuum.

Mr. Varley

Many of these issues will be discussed tomorrow, when we debate the Aircraft and Shipbuilding Industries Bill. I hope that we can get down to some detail during that debate, and certainly during the Committee stage, which we hope to start before Christmas. No doubt the hon. Gentleman will be a member of that Committee and will have a chance to develop his point there.

Mr. Blenkinsop

I welcome this Government's action and the action of previous Labour Governments concerning the shipbuilding and ship repairing industry, and point out the Conservative Party's complete neglect of those industries. Nevertheless, will my right hon. Friend especially bear in mind the importance of keeping in touch with the work force in the area and review the position about orders for new ships being placed abroad?

Mr. Varley

It is part of our discussions and considerations that we should discuss the prospects for British shipbuilders with British ship owners, because some of the problems of lack of orders within our shipyards could be overcome if British ship owners placed more orders here. That is certainly a point that we have in mind and that we shall be developing.

Mr. Teddy Taylor

One of the Minister's complaints about shipbuilding is the lack of investment. Is he aware that private firms in shipbuilding have invested £77 million over the past 10 years? Has he received an assurance of any sort from the Treasury that the cash outlined in the Bill will be available for investment in shipbuilding if, unfortunately, it is nationalised?

Mr. Varley

The cash will be available and in our judgment it will be adequate when the industry is publicly owned. However, the situation is extremely grave. I do not want to underestimate the difficulties. There are formidable problems in the shipbuilding industry. The world energy crisis has meant that there is a shortage of orders for tankers and the world recession has meant that orders for dry cargo ships are in short supply. We shall need the help of both sides of industry and the understanding and consideration of the House.

Mr. R. C. Mitchell

Will my right hon. Friend go a little further and tell us what discussions he is having with British ship owners? He is absolutely right when he says that if more British ship owners placed orders in British shipyards we should not be in half the difficulty that we are now.

Mr. Varley

I have not personally entered into discussions with British ship owners, but my officials are in touch with them and, if necessary, I shall get in touch with them direct.

Mr. Heseltine

I am sure that the Secretary of State realises that his promise of a detailed discussion is welcome. This is the first time since February 1974 that this Government have shown any interest whatever in the details of a policy for this industry. Will the Secretary of State confirm that in the new strategy that follows the nationalisation of the industry, the policy of specialising on three warship shipyards will not be changed?

Mr. Varley

I cannot anticipate the strategy which will be developed. The strategy for the industry in the first instance will be laid down by the organising committee in consultation with both sides of industry, but this will be a subject that will come under discussion during the Committee stage of the Bill.