§ 10. Mr. HuttonTo ask the President of the Board of Trade if he will make a statement about the future prospects for the shipbuilding industry. [18697]
§ Mr. PageI am pleased that United Kingdom shipyards are continuing to improve their competitiveness and win orders in the face of very difficult international market conditions.
§ Mr. HuttonWhat action will the Government be taking to ensure that British shipbuilders, such as VSEL in my constituency, will not be disadvantaged by hidden or indirect subsidies paid by foreign Governments to their shipbuilding industries? Will the hon. Gentleman join me in congratulating VSEL on recently winning two new orders to build merchant ships in the United Kingdom?
§ Mr. PageAs I said earlier, there is an OECD agreement to abolish direct support schemes. It will come into force on 15 July, assuming that Japan and the United States both ratify it. If the hon. Gentleman or any company has any evidence of unfair subsidies, the DTI would be only too eager to investigate those allegations. The order for two merchant vessels is a tribute to VSEL. It shows that, subsidy or not, that company has not been prevented from gaining orders.
§ Sir Donald ThompsonWhen considering shipbuilding. will my hon. Friend ensure that he does not forget the large boat and yacht building industry in the United Kingdom, the products of which employ many thousands of British men and women throughout the world?
§ Mr. PageMy hon. Friend makes a valid point. When UK yards concentrate on vessels for ownership and use in north-west Europe, where they do not face competition from Japanese and Korean yards, they do extremely well. The boat building industry is a valuable contributor to the UK economy.