HC Deb 28 July 1988 vol 138 cc538-9
13. Mr. Madden

To ask the Secretary of State for Northern Ireland what is the expected level of Government subsidy to be provided for any potential purchaser of Harland and Wolff shipyards; what is the present level of subsidy; and if he will make a statement.

Mr. Viggers

The terms of any sale would be a matter of negotiation. Any proposal would be carefully scrutinised to take account of European Community requirements. Harland and Wolff received £58 million of Government funding in 1987–88.

Mr. Madden

In view of the persistent high unemployment in Northern Ireland and the fragile nature of the economy, why do the Government persistently push their doctrinaire and dogmatic plans for privatisation in an economy and country where those plans are most unwelcome?

Mr. Viggers

First, the amount of public money that has been spent with Harland and Wolff and with Shorts in recent years has been large. Secondly, those organisations stand to benefit from private sector disciplines and opportunities. On the question of Harland and Wolff, we have had intimations of interest from parties other than Mr. Tikkoo and, as I have previously made clear, we welcome such approaches and will consider carefully any proposals that are put to us.

Dr. Godman

As the sale of Harland and Wolff has a significance that extends far beyond Northern Ireland, especially if EC shipbuilding intervention fund money is used by the Government on Mr. Tikkoo's plans, will the Minister give an assurance that if that shipbuilding intervention fund money is used, the engines and other major items of equipment will be purchased from British companies and not from companies outwith the European Community?

Mr. Viggers

I cannot give the hon. Gentleman the assurance that he requires, although if he wishes to table a specific question I shall, of course, address that.

Rev. Martin Smyth

Will the Minister estimate the proportion of subsidies for Harlands and Shorts which are actually going to subsidise employment in Scotland and England?

Mr. Viggers

The hon. Gentleman makes a fair point. There is certainly some benefit that flows to parts of the United Kingdom other than Northern Ireland through those subsidies.

Mr. McNamara

The disciplines of the private market have generally meant capital reconstruction and large falls in the number of people employed. Will the Minister give an assurance that there will be no capital reconstruction and no sell-off of Harlands and Shorts on the cheap to the private sector, and a guarantee that whoever buys the companies will maintain present employment levels?

Mr. Viggers

If the hon. Gentleman were to look at the balance sheets of Harlands and Shorts he would agree that some form of capital reconstruction is required and could be beneficial. It would be for the future owners to decide on future employment levels.