§ 2.45 p.m.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether they are taking any steps to encourage shipowners to place orders while there is so much unemployment in the shipyards.]
§ THE PARLIAMENTARY SECRETARY, MINISTRY OF TRANSPORT (LORD CHESHAM)My Lords, a principal cause of the present lack of orders throughout the world is that there are too many ships already. This is an international commercial problem, and my right honourable friend welcomes the initiative that has been taken by deep-sea tramp and independent tanker owners to start international discussions to try to find ways to overcome it. In the meantime, the 40 per cent. investment allowance on new ships, combined with the increased depreciation allowances 538 announced by the Chancellor of the Exchequer last month, must constitute an encouragement to British shipowners to place orders.
LORD HAWKEMy Lords, while thanking my noble friend for his reply, and welcoming the fact that some steps are being taken to deal with this problem, I would ask this further question. Would he not agree that the relief of taxation does not have an enormous impact when, as is the case at the moment, owners are unable to run their ships at a profit? Will he press forward with any schemes that can be suggested for the streamlining of shipyards for scrapping and building by shipowners, so that when war or disaster creates the inevitable shipping boom in the future our Maritime Marine will be the most modern and up to date in the world?
§ LORD CHESHAMMy Lords, of course I was aware that such allowances are not much help where the owners are not making any profit. But if shipowners are unable to make a profit, some of them certainly find it difficult to visualise building more ships when world circumstances of shipping trade are adverse. I should like your Lordships to know that the Shipping Advisory Panel set up by my right honourable friend has brought the ship-owning industry and my right honourable friend much closer together than ever before, and I am quite sure that such matters as my noble friend suggested will not be overlooked by them in their discussions.
§ EARL HOWEMy Lords, would it not help if a few more orders were forthcoming for ships for the Royal Navy?
§ LORD CHESHAMMy Lords, of course if there were further orders it would no doubt help; but that is something which my two right honourable friends are constantly discussing.
§ LORD OGMOREMy Lords, in order to get the matter in perspective, is it not the fact that, while shipbuilding is doing badly, ship repairing is doing very well?
§ LORD CHESHAMMy Lords, I understand that that is so, and that While world conditions for shipping are not good, they are not as completely impossible as is sometimes suggested. Most certainly the ships that are actively employed require repairing as much as ever.
VISCOUNT ALEXANDER OF HILLS BOROUGHMy Lords, the Minister will be aware that we are all glad that ship repairing is doing fairly well; but the greatest part of that work is being done in yards which are almost exclusively devoted to ship repairing the whale time, such as Middle Dock, on the Tyne, and other places that I know well. I hope that they will not lead to our halting at all about providing new construction.
§ LORD CHESHAMMy Lords, one certainly hopes not. I do not see Why it should, because the hope of new construction would surely avoid the danger of switching over from constructional use to repair work, which would create a surplus of repair facilities.