§ 3. Dr. GodmanTo ask the President of the Board of Trade how many merchant vessels of 500 gross registered tonnes or more were constructed in United Kingdom shipyards in each of the past four years. [38651]
§ The Parliamentary Under-Secretary of State for Trade and Industry (Mr. Ian Taylor)The number of merchant ships of 500 gross registered tonnes or more completed by United Kingdom yards between 1990 and 1994 was 18, 17, 14, nine and 11 respectively. The total tonnage of the completed ships almost doubled over the period.
§ Dr. GodmanThe Minister knows that, on the Clyde, we have witnessed a decline from 32 shipyards to three. Even though Kvaerner Govan won a tidy little order recently, those three shipyards are in a perilous condition. Will the Minister seek a reappraisal of the decision to end the seventh directive of the shipbuilding intervention fund? Should he refuse to do so, will he urge upon the European Commission the need for fair competition in the Italian and Spanish yards, against which our yards bid for European contracts?
§ Mr. TaylorThe hon. Gentleman slightly underplays the small order to which he referred, because Kvaerner Govan has won a £60 million contract to launch communication satellites from a platform in the Pacific. I am sure that he welcomed that order in his constituency, so I hope that he will also welcome it in the House.
The agreement within the European Union on the OECD shipbuilding agreement effectively means the end of the shipbuilding intervention fund. The hon. Gentleman must know that. That will, however, benefit his yards and others, in the sense that there will be a fairer basis of international competition. At the moment, we compete against highly subsidised yards elsewhere. It is in Britain's interest that that agreement should come into effect as soon as possible, and that we should continue to improve the competitiveness of ships carrying the red ensign.
§ Mr. James HillMay I congratulate my hon. Friend on his roving commission along the south coast? We were pleased to see him in Southampton. As he roves along the south coast, he will find many small shipbuilding yards that would appreciate orders. Some years ago, there was a scrap and build scheme operated by the European Union, but I am afraid that we did not take it up. When my hon. Friend is in Brussels, he may have reason to raise that scheme. Any more support for our small shipyards would be welcome.
§ Mr. TaylorI understand my hon. Friend's concern for the yards along the south coast. I am delighted to be the sponsor Minister for those south coast towns. I have recently visited Southampton, Portsmouth and Hastings, and I am aware of the local difficulties. I shall look at my hon. Friend's proposal, but there is no substitute for our competing with the rest of the world for contracts. I therefore welcome the fact that other countries are having to abandon their subsidies.