§ 14. Sir Albert Costainasked the Secretary of State for Industry how many shipbuilding orders have been obtained in the United Kingdom for Hong Kong companies in the last two years; and what is the tonnage involved.
§ Mr. WakehamIn 1980 and 1981 Hong Kong companies placed orders for 11 ships of around 103, 000 compensated gross registered tons.
§ Sir Albert CostainDoes my hon. Friend agree that that is a satisfactory situation? Has he noticed that more publicity is given to orders lost than to orders gained? People complain about imports from Hong Kong, but should we not also take account of orders coming from Hong Kong?
§ Mr. WakehamHong Kong shipowners represent a valuable and important market. They own almost as much tonnage as the entire United Kingdom merchant fleet. Their entrepreneurial qualities are well known.
§ Dr. John CunninghamWill the Under-Secretary think again about his right hon. Friend's response to the 584 P and O order? Is it not a great tragedy that the largest shipbuilding order for many years from one of the largest British shipping companies is not being carried out by a British shipyard? Is that not an indictment of the Government's shipping and shipbuilding policies? Will not many thousands of shipyard workers whose jobs are threatened note the Secretary of State's indifference to their plight?
§ Mr. WakehamThe hon. Gentleman misreads the situation. I regret that British Shipbuilders was not able to secure the order. It was not able to offer the delivery that P and O required because of its order book. That is a matter of credit rather than criticism. The House will know that last Monday Swan Hunter announced a £25 million order for a container ship for a United Kingdom company. In each of the past three years about one-third of United Kingdom fleet orders have gone to British Shipbuilders. The orders have provided between one-third and two-thirds of British Shipbuilders' new business. Its order book is about 600, 000 CGRT, which is much higher than last year, when it fell to around 400, 000 CGRT.
§ Sir Paul BryanIs my hon. Friend aware that Hong Kong is not only our best market for ships but our best market for power stations? We now export more to Hong Kong than we do even to Japan. Will he point out to our exporters that we have only 5 per cent. of that market and that great opportunities still exist?
§ Mr. WakehamIndeed, I will. Not only have Hong Kong companies placed 11 orders for ships, but we estimate that a further eight ships have been ordered for companies that are associated with, or subsidiary to, Hong Kong companies.
§ Mr. JayIf the Minister is right in saying that the P and O order was lost through a lack of capacity, does that not show the folly of cutting down our industrial capacity during a temporary recession?
§ Mr. WakehamBritish Shipbuilders wants to establish a long term viable base for its industry. Its decision has been made in relation to what it sees as its long-term viable base.