Harland and Wolff

HC Deb 07 December 1978 vol 959 cc1608-10

12. Mr. Craig

asked the Secretary of State for Northern Ireland if he will make a statement on the present and future prospects of Harland and Wolff.

19. Mr. Faulds

asked the Secretary of State for Northern Ireland, whether any progress has been made in obtaining orders for Harland and Wolff.

Mr. Concannon

Harland and Wolff Limited has secured orders for three new ships—a bulk carrier and two ferries—so far this year. This means that the yard currently has eight ships on its order book, for delivery between the beginning of 1979 and the end of 1980.

Harland and Wolff cannot escape the effects of the present world recession in shipbuilding, in which no significant improvement is expected before the mid-1980s, and the size of the work force must continue to adjust to these circumstances. However, I am determined to do all in my power to help the company secure new orders where possible. I am also encouraging the company to diversify its activities into new fields, such as offshore oil-related work, to help offset the effects of the depression in shipbuilding.

Mr. Craig

Does the right hon. Gentleman appreciate the importance of Harland and Wolff to the economy of Northern Ireland in terms of the people employed within the company and the many industries that service the yard? Is he satisfied that sufficient steps are being taken to make the yard competitive in the difficult circumstances that prevail? If so, what does it mean in terms of the labour force to be employed?

Mr. Concannon

As I have said, much depends on whether we are fortunate with new orders, bearing in mind the depressed state of the industry. The size of the work force will continue to adjust to those factors. Progress will be steady and controlled on the basis of full consultations and understanding among all concerned. Much will depend upon the relative performance of the shipyard and success in securing new orders and so maintaining a full work load.

Mr. Faulds

I understand the problems of the shipbuilding recession throughout the world, but is my right hon. Friend satisfied that his efforts to encourage diversification are proving successful?

Mr. Concannon

We have had some success in diversification at Harland and Wolff and the company is seeking work in new areas. One such new area is the signed agreement that we have with MAN of West Germany for the manufacturing in Belfast of medium-speed diesel engines. We have also taken orders for offshore oil-related work. We have attempted to enter the structural steel work sector. A range of motor and cycle accessories is already being produced. These diversifications make a valuable contribution to the company's work load, but I do not think that they will ever provide a complete solution to the problems caused by the world shipbuilding depression.

Mr. Neave

Arising from the right hon. Gentleman's answer about diversification, will he indicate how many jobs have been preserved as a result of the progress in diversification? We welcome the new orders, but will he tell the House why no defence contracts have been awarded to Harland and Wolff? Will he approach his right hon. Friend the Secretary of State for Defence about that?

Mr. Concannon

I can assure the hon. Gentleman that we have followed up the lack of defence contracts. However, there are not many defence contracts going around any of the shipyards. That is one of the problems. The agreement that we have with MAN will safeguard about 400 jobs in the engine workshops with the construction of the medium-speed diesel engines. I think that the hon. Gentleman will know that the engine works are suffering from a serious shortage of orders. I have to say that the number of people employed in that sector is bound to decrease.