HC Deb 10 April 1978 vol 947 cc963-4
16. Mr. Arnold

asked the Secretary of State for Industry whether he will make a further statement on the Government's proposal for support for the British shipbuilding industry.

Mr. Les Huckfield

Proposals for an extension of the Shipbuilding Intervention Fund are currently under consideration, and my right hon. Friend expects to make a statement as soon as the necessary consultations have been completed.

Mr. Arnold

Is it not the case that most major world shipbuilders are now engaged in a competitive subsidy race which, if allowed to continue, can only result in the prolongation of over-capacity in world shipping? How can the Government justify the use of taxpayers' money to subsidise overseas ship owners to compete with the British merchant fleet?

Mr. Huckfield

I hope that the hon. Gentleman realises that if British Shipbuilders did not build the ships some other country would, and they would still compete against our own ship owners. But I am glad that the hon. Member has recognised that Belgium has a home credits scheme, that Denmark has a temporary interest subsidy, that France has a construction subsidy, that Germany subsidises ship owners, that Ireland helps construction losses and that many other Governments do much the same. The most significant feature is that this country did not contribute to the over-capacity.

Mr. Heffer

Will my hon. Friend ask the Minister of State to reconsider his answer about Western Ship Repairers in view of the fact that this will lead to a further increase in unemployment on Merseyside, which is already a very serious problem? Will he ask my hon. Friend, before he meets me and a delegation on Thursday morning, to consider further the idea of again pressing British Shipbuilders to take over this company, since it was promised at an earlier stage that this would be done if it could be done?

Mr. Huckfield

My hon. Friend is right to press his case, and I understand that he is seeing my hon. Friend the Minister of State very shortly. But I hope also that he and his hon. Friends will press their case inside the House and outside it, because I would hope that if we had in the Act the nationalisation of ship repairers we would not have been in this position.