HC Deb 16 July 1986 vol 101 cc1000-2
17. Mr. Frank Cook

asked the Secretary of State for Trade and Industry what representations he has received about the current state of the shipbuilding industry; and if he will make a statement.

Mr. Peter Morrison

My right hon. Friend and I have received a number of delegations and much correspondence about the shipbuilding industry in recent months.

Mr. Cook

The Minister will be well aware of anxiety about naval shipbuilding capacity in Britain, but is he aware that there are no major projects for merchant shipbuilding ahead for next year? What will the Government do about that lack of work? Are they content to see this once great maritime nation become bereft of any merchant shipbuilding capacity and dependent for its supplies of such vessels on countries overseas?

Mr. Morrison

The hon. Gentleman will know that my right hon Friend accepted the proposals that British Shipbuilders put to us for a reduction in capacity. My right hon. Friend said at the time that there will be sufficient capacity for the orders that we hope to get. I assure the hon. Gentleman that every effort is being made to secure such orders.

Mr. Holt

Does my hon. Friend agree that, although he has had representations from a wide range of people in the Cleveland area, especially about the closure of Smith's dock, it is a little difficult to explain to them how a shipbuilding yard in Tasmania is successfully tendering for the Isle of Wight ferry?

Mr. Morrison

I am well aware of the delegations that I have received, and my hon. Friend has been in touch ceaselessly about the future of Smith's dock. I appreciate the difficulties in which he and those who work there find themselves. Difficult decisions have to be made when one has over-capacity.

Mr.Clay

Is the Minister aware that, in May this year, Japanese shipyards received orders for 40 cargo ships foreign to Japan, representing 295,000 gross registered tonnes, which is 50,000 tonnes more than British Shipbuilders says will be required in a whole year for it to stop all the proposed closures and redundancies? If Japan can get that many overseas orders in one month, which was a bad month for them, how on earth is it that the Government cannot enable British Shipbuilders to get the same amount in one year?

Mr. Morrison

I can neither confirm nor deny the hon. Gentleman's figures about Japanese shipyards. He will appreciate — he has been to see me as part of a delegation —that every effort is being made. Every effort will continue to be made.

Mr. Hill

Will my hon. Friend tell the true story about the evolution of shipbuilding throughout the world? We have been outclassed, outworked, underpriced, unprepared to deliver ships on time, we have had deplorable labour relations and the trade union movement has been out of control. Will my hon. Friend make it clear once and for all that these chickens are now coming home to roost?

Mr. Morrison

As I have persistently said, British Shipbuilders will get orders only if, as my hon. Friend the Member for Southampton, Test (Mr. Hill) forcefully points out, it is competitive. That is very necessary. It is fair to add that whether one is talking about the Japanese or European shipyards or anywhere else, there is surplus capacity of ships and shipbuilding.

Mr. Williams

I am astonished that a local Member would sell out his own shipyard and workers in the way in which the hon. Member for Southampton, Test (Mr. Hill) just did. May I ask the Minister whether he realises that there is now deep gloom in the Swan Hunter yard and Vosper Thornycroft as a result of the placing of a recent frigate order? Does he realise that that means that one of those yards is likely to close? As for the level of protection that one of the yards is receiving, we can guess which one it might be. Can the Minister tell us what plans he has to help those yards, since clearly one local Member has no intention of doing so?

Mr. Morrison

If the right hon. Gentleman were to inquire at Swan Hunter, he would quickly discover that it has a close relationship with my Department and myself. That relationship inevitably means that the sort of communication that it wants with the Government is properly put.

Later—

Mr. Hill

On a point of order, Mr. Speaker. You will remember that only a few minutes ago the right hon. Member for Swansea, West (Mr. Williams), speaking on behalf of the Opposition, made a slanderous attack on me by suggesting that I was speaking against the shipbuilding industry of Southampton. I want to put the record straight. There is no shipbuilding industry in my constituency, although the industry is ably supported by my hon. Friend the Member for Eastleigh (Sir D. Price) —

Mr. Speaker

Order. We frequently hear things in this House that we do not like and with which we disagree. I cannot allow the hon. Gentleman to have a second opportunity to answer the point.

Mr. Hill

rose—

Mr. Speaker

Order. I cannot allow the hon. Gentleman to continue. He will have to find other ways to put his case.