HC Deb 13 November 1978 vol 958 cc5-7
7. Mr. David Hunt

asked the Secretary of State for Industry whether he has received a draft corporate plan for British Shipbuilders.

Mr. Kaufman

No, Sir.

Mr. Hunt

In view of the Minister's lack of response earlier today may I ask whether he is aware of the real fears of those working in the shipbuilding industry which have been caused by rumours, several of which have been reported this morning? Will he arrange for a detailed statement to be made explaining the extent of the cut-backs which will be necessary? Does he now understand why so many people are drawing the inference that nationalisation has been an unmitigated disaster for the shipbuilding industry?

Mr. Kaufman

The hon. Gentleman has obviously not spoken to any shipyard workers lately. The British merchant shipbuilding industry today would not exist if it had not been for nationalisation. Thousands of workers in the North-East, on Clydeside and in other shipbuilding areas, who have reason for nothing but scorn for the Conservative Party and the Scottish National Party for what they did about shipbuilding, are grateful for what the Government have done to save their jobs.

Mr. Buchan

Will my right hon. Friend ensure that any plan for British shipbuilding also includes a continuing role for the dry dock on the lower reaches of the Clyde? Has he heard the point of view expressed by many workers that a joint management and workers' committee should be established to investigate past costing and the future use of the dry dock for both new shipping and repairing, thereby avoiding redundancies?

Mr. Kaufman

I discussed with workers' representatives of Scott Lithgow last week the Scott Lithgow dry dock. I explained the view of British Shipbuilders that the dry dock could be helpful in shipbuilding work. I have pursued with the chief executive of British Shipbuilders, whom I met last week, the possibility of a continuing role for ship repair in that dry dock.

Mr. Michael Marshall

Will the Minister confirm that the corporate plan is due to be laid before his Department by 31st December? Will he take the opportunity of saying whether the profit from British Shipbuilders is still continuing to decline from previous estimates of £40 million? Will he think very carefully and confirm that the House will have a [...]hance to see that corporate plan?

Mr. Kaufman

I cannot confirm that the House will see the corporate plan, because it contains details about the commercial prospects of a large number of companies which are extremely competitive in a worldwide shipbuilding disaster. We shall, however, see what information we can make available to the House. The accounts will be laid before the House shortly.

Mr. Kilroy-Silk

Is my right hon. Friend aware that the workers at Western Shiprepairers welcome the positive steps that he has so far taken to safeguard their jobs but that neither they nor anyone else on Merseyside will be satisfied until those jobs have been secured? Will he use whatever influence he has with British Shipbuilders to insist that Western Shiprepairers is taken into the nationalised industry? Will he also indicate when he is likely to receive a decision from British Shipbuilders?

Mr. Kaufman

We do not have the statutory powers to insist that British Shipbuilders take over Western Shiprepairers. However, I have always made clear to British Shipbuilders that I should like helpful steps to be taken. Western Shiprepairers applied to British Shipbuilders to be taken over when it was losing a great deal of money. It is important for British Shipbuilders not to be hampered by large loss-makers in the present serious situation.

Mr. Norman Lamont

Has the Minister of State seen the comments by the managing director of Austin & Pickersgill Ltd. to the effect that since nationalisation productivity has fallen sharply? How does that square with the Minister's claim when the legislation was introduced that he was creating a modern, competitive industry?

Mr. Kaufman

I have seen what that gentleman said about the situation at Austin & Pickersgill Ltd. I have also had a letter from my right hon Friend the Member for Sunderland, North (Mr. Willey) giving the workers' views about that situation. Their views vary seriously from those of Mr. Kimber.