HC Deb 01 May 1991 vol 190 cc297-8
1. Dr. Godman

To ask the Secretary of State for Trade and Industry if he will detail the vessels which are being constructed in United Kingdom shipyards with financial assistance provided by way of the European Community's seventh directive on the shipbuilding intervention fund; and if he will make a statement.

The Parliamentary Under-Secretary of State for Industry and Consumer Affairs (Mr. Edward Leigh)

On 31 March 1991, 42 vessels were being constructed in United Kingdom shipyards with support from the shipbuilders intervention fund in England and Scotland and from intervention grant aid in Northern Ireland. This represents a total tonnage of 586,971 tonnes and a total value of £654.7 million. Assistance contributes £116.4 million or 17.8 per cent.

Dr. Godman

May I thank the Minister for his generous efforts on behalf of Scott Lithgow in attempting to have that shipyard redesignated for intervention subsidy? I am angry and deeply disappointed about the miserly reaction of Sir Leon Brittan. That conceited Commissioner should be told that United Kingdom shipyards deserve the same sympathy as is shown to the shipyards of other nations. Will the Minister use his good offices, and those of his colleagues in the Department of Energy, to ensure that Scott Lithgow obtains some of the offshore work? That must be better than such work going outside the United Kingdom.

Mr. Leigh

I am grateful to the hon. Gentleman for his plaudits. He is right that we approached Sir Leon Brittan, who told me when he came to see me last month that he was unable to compromise on the matter and that shipbuiding intervention funds would not be available to Scott Lithgow under article 7 of the seventh directive until 1994. I shall certainly approach my right hon. and hon. Friends in the Department of Energy on behalf of the hon. Gentleman.

The hon. Gentleman may have been a bit harsh on Sir Leon Brittan, who faces demands from the rest of the Community for increases in shipbuilding subsidy. There is also a problem in the German shipyards as the German Government have decided to give no subsidy whatever to any shipyards in what was West Germany.

Miss Emma Nicholson

I congratulate the Minister and ask him to confirm that the restructuring of British shipbuilding means that it is imperative that other European nations continue to reduce their subsidies so that we have a level playing field. He knows my deep interest in Appledore shipyard. Will he confirm that his Department is doing everything that it can to help that small shipyard on which so much employment regeneration rests?

Mr. Leigh

I know that my hon. Friend, who has come to see me on the matter, speaks up strongly on behalf of Appledore yard in her constituency.

Mr. Morgan

What is the Minister going to do about it?

Mr. Leigh

I shall tell the House what I am going to do about it. Appledore is in receipt of shipbuilding intervention funds and if it were to apply for the home credit guarantees schemes, we would consider that. My hon. Friend is right. The figures that I read out show that we subsidise shipbuilding to the maximum extent allowed by the European Commission. Given the problems of the former warship yards, particularly Swan Hunter and Cammell Laird—I see the hon. Member for Birkenhead (Mr. Field) in his place—it is clearly in the interests of those yards that we end subsidies as quickly as possible.

Mr. Frank Field

On behalf of the stewards at Lairds, may I thank the Minister for his efforts in trying to secure intervention funding? The stewards have asked me to ask the Minister whether they are right in assuming that the British Government pay the intervention funding, not the European Commission. The stewards wish to know what would happen if the British Government decided to pay the intervention funding without the approval of the Commission.

Mr. Leigh

It is indeed the British Government who pay the intervention funding. The hon. Gentleman has asked me to do something difficult which we have not considered doing before—to go against the explicit direction of the European Commission. For such a communautaire Government as we are, that would be an inappropriate and wrong thing to do.