HC Deb 26 February 1990 vol 168 cc4-5
7. Mr. Kennedy

To ask the Secretary of State for Energy if he will assess the potential for expanding the size of the United Kingdom fabrication capacity; and if he will make a statement.

Mr. Peter Morrison

Consideration of the potential for expansion of capacity in the fabrication industry is a matter for the private sector, and will depend on the commercial judgment of individual yard owners.

Mr. Kennedy

I thank the Minister for that opaque answer. There has been some discussion, at least in Scotland —as the Minister will know—about the number of fabrication yards and whether there is any possibility of expanding them. I am thinking in particular of the former Kishorn site in Wester Ross which went into receivership; there has been talk about its future.

Will the Minister bear it in mind that the private sector is, rightly, still concerned about the European Community draft directive on procurement, and about the knock-on effect that it could have on the oil-related sector in Scotland? Can he give us any idea of the Department's thinking on either subject?

Mr. Morrison

As the hon. Gentleman will remember, it was only two years ago that he and other hon. Members who represent yards in the north and north-east of Scotland were coming to me and asking —understandably —where the work would come from. Now we are in a different position, with different challenges. It may be opaque to the hon. Gentleman, but it will be the market place that decides.

As for the directive, as I have said several times it is important that we continue to play on a level field, and we shall do all that we can to ensure that.