HC Deb 09 February 1976 vol 905 cc3-6
2. Mrs. Knight

asked the Secretary of State for Trade if he is satisfied that subsidised freight slashing by Eastern bloc shipping lines does not constitute dumping.

9. Mr. Shersby

asked the Secretary of State for Trade what assessment he has made of the extent and effect of subsidised freight rate slashing by Eastern bloc countries on British shipowners.

17 Mr. Tim Renton

asked the Secretary of State for Trade if he is satisfied that existing anti-dumping legislation is adequate to prevent the offering by foreign concerns of services, such as shipping, at less than cost.

24. Mr. Peter Morrison

asked the Secretary of State for Trade whether he is satisfied that Eastern bloc shipping lines are competing for cargo on a fair basis.

The Under-Secretary of State for Trade (Mr. Clinton Davis)

We have received representations which are being studied urgently and we are consulting with interested parties both at home and abroad. In any event, dumping, as defined by our legislation, applies only to goods and not to services.

Mrs. Knight

Will the Minister confirm that British shipowners are not the only ones to be affected by these practices and that representations have been made to the inter-departmental consultative shipping group by national shipowners' associations from Belgium, Denmark, Finland, France, Germany, Greece, Italy, Japan, Netherlands, Norway, Sweden and the United Kingdom?

Mr. Speaker

Order. I am always sorry to interrupt a lady, but if the preamble could be dealt with and the Question put quicker it would assist us all.

Mrs. Knight

I accept your rebuke, Mr. Speaker. I merely ask the Minister whether it is true that there is worldwide concern about this matter.

Mr. Davis

Yes; widespread anxiety is felt by shipowners and, indeed, Governments. However, it is right that we should carry out a careful assessment of the position and seek, as far as we can, a co-ordinated approach in order to resolve the problem.

Mr. R. C. Mitchell

Will my right hon. Friend consider this problem most seriously? Is he aware that there is plenty of evidence that in certain cases rates are being undercut by as much as 25 per cent. and that the jobs of many British seamen will be threatened if this continues?

Mr. Davis

Yes, we are very concerned. Indeed, it is for that reason that my Department and I are concerned to carry out a careful assessment of the position. As I indicated to the hon. Member for Birmingham, Edgbaston (Mrs. Knight), it is right that as far as possible there should be a joint approach on these matters rather than simply a bilateral exchange.

Mr. Shersby

Will the Minister try to deal with the difficult problem of flag discrimination by making certain that British and other Western shipowners have access to Russian liner cargoes, in the same way as the Russians have access to ours?

Mr. Davis

That, of course, is more easily said than done. In this matter we also have to take into account the views of our exporters. We should not jump into making a rash judgment. I hope the House will consider that what I have already outlined as the Department's policy is a correct and sensible one.

Mr. Ford

Will my hon. Friend take into account the fact that these subsidies apply not only to shipping but to electronics, leather goods, textiles, electrical engineering and many other items, all of which, as a sum total, seem to represent a conspiracy to destroy Western economies? Will he take this matter very seriously and, if necessary, consult other Governments?

Mr. Davis

I think that it is all too easy to rush into a widespread denunciation. One has to examine each practice on its own merits or demerits, as the case may be—and that, of course, is what my Department does. On aspects other than shipping, I have no doubt that my hon. Friend has already made, or will be making, representations to my right hon. Friend.

Mr. Renton

Will the hon. Gentleman confirm that he has strong reserve powers under Part III of the Merchant Shipping Act 1974 by means of which he can even prevent foreign vessels calling at British ports? In accepting the need for joint action, is the hon. Gentleman consulting other Western nations which have similar powers?

Mr. Davis

We are having consultations with other Western nations which may be affected by this threat. Whether all of them have reserve powers similar to ours I would not like to hazard a guess. As was outlined by the hon. Member for Henley (Mr. Heseltine), who was then in charge of the Department, there can be no doubt that our reserve powers were intended by the Conservative Government as a policy of last resort. That has to be taken into account, because they are very Draconian powers.

Mr. Flannery

Will my hon. Friend accept from me that we on the Government side deplore dumping from wherever it comes? At the same time, when there is talk of distortion of Western economies taking place, as though in a conspiracy, will my hon. Friend also accept from me that I, with many of my hon. Friends in Sheffield, have been approached by shop stewards' committees and factories about the dumping of Japanese steel, which distorts the economy of that steel city? Will he also take that into account?

Mr. Davis

As a matter of general principle, dumping is to be deplored. My right hon. Friend has constantly given the Government's policy on the subject. I do not want to enter into a philosophical discussion about the demerits of certain conspiracies, because I think that it would take more than Question Time to get through it.

Mr. Morrison

Has the hon. Gentleman considered what is the motivation behind the slashing of shipping rates by the Eastern bloc? Is he happy that its actions are within the spirit of the Helsinki détente?

Mr. Davis

If I were happy about the situation I would not be engaged in the discussions which I have already outlined. It is, of course, a matter for concern. I would not like to think that anyone was complacent about a matter in respect of which the shipowners feel very strongly and have made representations to a large number of hon. Members.