HC Deb 27 February 1978 vol 945 cc23-5
14. Mr. Montgomery

asked the Secretary of State for Industry when he next expects to meet the chairman of British Shipbuilders Limited.

Mr. Kaufman

My right hon. Friend and I meet the chairman frequently, but a meeting is not scheduled at present.

Mr. Montgomery

When the Minister meets the chairman, will he pass on to him the bitter resentment felt by many people at the enormous handouts to Swan Hunter shipyard workers who have brought about their own redundancy through continual strike action? Will this benevolent Government give any help to the small shopkeepers in the area around the yard whose businesses will be adversely affected? Or is it the Government's policy to help those who are not prepared to help themselves but to do nothing for those who try hard to help themselves?

Mr. Kaufman

The hon. Gentleman has anticipated whatever payouts take place when the scheme comes into operation, which will not be for some little time because the order still has to be formulated. It is not possible at this stage to say what the average payment will be to Swan Hunter workers who will be declared redundant. These workers automatically qualify for redundancy payments under the Redundancy Payments Act, legislation which prevailed when the Conservative Party was last in office.

Mr. Conlan

Will my hon. Friend meet the Chairman of British Shipbuilders and explain that, despite the regrettable events recently at Swan Hunter, that shipyard has an outstanding record for building ships, especially naval vessels, and that therefore the intention should be to resolve the existing problems in the yard and to ensure that there is no further recrimination?

Mr. Kaufman

My hon. Friend is absolutely right. Swan Hunter is a first-rate shipyard. That is one reason why it is so regrettable that the circumstances arose in which its share of the Polish order had to be reallocated. Swan Hunter has benefited in the past and, indeed, it is benefiting now from naval orders. We very much hope that circumstances will make it possible for that policy to continue.

Mr. Emery

Will the Minister and the chairman make it clear to buyers of British ships exactly what subsidisation will be made by the Government, so that perhaps Commonwealth countries could benefit to a much greater extent than Communist countries when they are placing orders?

Mr. Kaufman

Of course, we prefer not to subsidise at all. We subsidise where it is necessary. I note what the hon. Gentleman says, and I assume, therefore, that if we decide to subsidise an order from India it will have his full support.

Mrs. Bain

When the Minister meets representatives of British Shipbuilders, will he be discussing the possibility of extending the Intervention Fund which has been provided for preserving jobs in areas such as the West of Scotland? Will he accept that an early announcement on this matter is needed?

Mr. Kaufman

I greatly appreciate what the hon. Lady has said. The Intervention Fund has been of exceptional importance in maintaining jobs in both England and Scotland. The hon. Lady will know that today there are workers in pretty well every shipyard in Scotland who are at work on ships which have been provided as a result of the Intervention Fund and who would otherwise have been on the dole. It is our wish that if it can be arranged the fund will continue.