HC Deb 18 June 1986 vol 99 cc1030-1
4. Mr. Foulkes

asked the Secretary of State for Trade and Industry what proposals he is now considering for the Troon yard of Ferguson Ailsa.

Mr. Peter Morrison

We have accepted British Shipbuilders' decision that the operations at the Troon yard of Ferguson Ailsa should cease once the present order hook is complete. I understand that British Shipbuilders is now seeking potential buyers.

Mr. Foulkes

Is the Minister aware that when the right hon. Member for Ayr (Mr. Younger). the Secretary of State for Defence, recently visited the Ailsa yard at Troon he made two specific promises: that the Government would examine what orders, and particularly Ministry of Defence orders, might be brought forward; and that the Government would consider the report of the consultants Planning Industrial and Economic Development Advisers and the possibilities in it for the Troon yard? Will the Minister confirm that the right hon. Member for Ayr was speaking on behalf of the Government when he made those two pledges? When will we have a report on the result of those two promises? How will discussions now be undertaken with British Shipbuilders to ensure that it is aware of the implications of the right hon. Gentleman's promises?

Mr. Morrison

As the hon. Gentleman takes a close interest in this matter, he will appreciate that my right hon. Friend the Secretary of State for Defence always speaks on behalf of the Government. The hon. Gentleman will also be aware that the remarks that I and my right hon. Friend made during the debate on shipbuilding were concurrent.

Mr. Lambie

Despite the Minister's original answer and British Shipbuilders' decision to close the Troon yard, if Ferguson Ailsa wins another order will the Minister lean heavily on British Shipbuilders to ensure that the order is built at the Troon yard so that both yards can be kept open?

Mr. Morrison

The hon. Gentleman has attended our shipbuilding debates and he will appreciate that such decisions are for British Shipbuilders to make. It is for it to decide in which yards to place orders. However, I listened carefully to the hon. Gentleman.

Mr. Sayeed

Though the difficulties of Troon are similar to those of other yards that are owned by British Shipbuilders, there being twice as many modern ships as there are cargoes to fill them, is there not a case for ensuring that ships and cargo rates are not dumped on the market by countries outside the EEC which are subsidising their shipbuilding and freight rates to such a great degree that British Shipbuilders and British shipping companies cannot compete?

Mr. Morrison

The simple answer to my hon. Friend is yes. That is precisely what we are discussing at the Council of Ministers for a successor to the fifth directive.