HC Deb 24 January 1983 vol 35 cc644-5
2. Mr. Colvin

asked the Minister for Trade if he will meet the General Council of British Shipping to discuss the draft European Community competition regulation on loyalty arrangements.

Mr. Sproat

Yes, Sir. I am writing to both the general council and to the British Shippers Council to invite them to discuss further the Government's proposals regarding the regulation.

Mr. Colvin

Has my hon. Friend seen the report in today's Financial Times that shipping faces its toughest year for 50 years? Does he agree that to proceed with a scheme to reduce the loyalty arrangements from 100 per cent. to only 70 per cent. at the present time is likely to deprive conference lines particularly of their high value cargoes, leading in the end to a further reduction in our Merchant Navy, to the detriment of both our trade and the defence of the nation?

Mr. Sproat

My hon. Friend does well to draw attention to the extremely difficult times through which our Merchant Navy is passing. However, I remind him that there is no compulsion on shippers to reduce their loyalty arrangements to 70 per cent. If shipowners give good value for money they can certainly keep the 100 per cent. arrangement.

Mr. Woolmer

What will the Minister tell the GCBS about the state of British shipping and what the Government intend to do about it? What other country is standing by and doing nothing to protect or help its merchant fleet? Our fleet was once the pride of the nation. What will the Minister do to stem the job losses and the outflow of shipping orders?

Mr. Sproat

I shall tell the hon. Gentleman what I am doing, not merely what I am going to do. Last week I saw the GCBS to discuss the matter and I also saw the National Union of Seamen. Tomorrow I shall be seeing the Merchant Navy and Airline Officers Association and I shall see the radio operators later this week. When we have had a chance to consider all their views we shall put together our own views on what should be done about an extremely difficult situation, which does not affect only the British fleet, but is a result of the world wide recession.

Mr. Higgins

Is my hon. Friend aware that those of us who have made a lifetime study of the shipping industry and have always felt that the advantages of competition are very strong believe, nevertheless, that the EC's doctrinaire attitude on the issue is misguided and that the conference system and loyalty arrangements have much to be said for them, from the point of view not only of the industry, but, in the long term, of the consumer? Will my hon. Friend take the toughest possible line with the EC?

Mr. Sproat

My hon. Friend states a widely held view. It is shared by the shipowners, but the shippers have a different view and it is in an attempt to reconcile the two views that I am calling a meeting with both groups.

Mr. Woolmer

Does not the Minister recognise that his "hands off" approach is not satisfying even his right hon. and hon. Friends who are ideologically committed to competition? When will the Minister tell the shipping industry that he will stop talking and start acting?

Mr. Sproat

A useful prerequisite of action is a discussion of the present situation. I do not think that anyone could do more than I am doing by consulting all the seafaring unions and the GCBS.