§ LORD SHEPHERDMy Lords, I will now repeat the Statement which has just been made by my right honourable friend. It is as follows:
§ " With your permission, Mr. Speaker, and that of the House, I should like to make a further statement about the Fairfield Shipbuilding and Engineering Company, Limited.
§ " On November 4 my right honourable friend, the Chancellor of the Exchequer, announced to the House that the Government had agreed to guarantee an advance by the Bank of England of a sum not exceeding £1 million to enable this shipyard to continue in operation.
§ " In view of the leading part which shipbuilding plays in the Scottish economy, the fact that the Fairfield yard is an important and recently modernised part of this industry, and that the livelihood of many thousands 416 is involved, the Government have been consulting with a number of interested parties to ascertain whether it is possible to establish the yard on a more permanent and satisfactory basis. These consultations are still continuing with some hope of success; but the Government have not yet taken any decision. The House will of course be informed as soon as a decision has been reached."
§ THE EARL OF DUNDEEMy Lords, I am grateful to the noble Lord for repeating this Statement on a subject which is of great importance both to the economy of Scotland and also, I should imagine, to our balance of payments. However, I imagine the only reason for making the Statement now is to assure us that the Government have not forgotten all about the subject. A month ago we were told that a guarantee of £1 million would be offered, and all we are told in this Statement is that the consultations with interested parties are going on, that there is some hope of success and that the Government have not yet made any decision. Can the noble Lord say anything more about the conditions which are attached to this guarantee of £1 million, and can he say whether these consultations are taking longer than the Government expected?
LORD REAMy Lords, may I ask the noble Lord whether the Government's concern is limited to Fairfield's shipyard; and, if so, why? After all, there are other shipyards who are in an equally anxious position, and it would be interesting to know whether there is any chance of their benefiting in the same way. But I think that at this point I should declare an interest in the subject.
§ LORD BOOTHBYMy Lords, before the noble Lord replies, may I ask him to bear in mind that it is absolutely vital to the economic interests of Scotland that these negotiations should be brought to a rapid and successful conclusion.
§ LORD SHEPHERDMy Lords, as the noble Lord, Lord Boothby, says, a rapid and successful conclusion is wanted. But I am sure that the noble Lord and the noble Earl will understand that in this particular matter there are many complex and legal matters on which there must be consultation; and, of course, agreements have to be arrived at.
417 I was surprised that the noble Earl should try to suggest that there has been any delay in this matter. Perhaps I may remind the noble Earl that it was on October 15 that the Bank of Scotland appointed a receiver and manager in view of the financial difficulties of this company. It was on October 29 that the Chancellor was informed that the funds that were available to the receiver were not sufficient for the yard to continue, and within a matter of a few days the Government had come to a decision, which was announced on November 4. The Government are very much aware of the situation and of the importance of Fairfield's not only in terms of the balance of payments, but also in terms of the 5,000 men who work there and the other industries which are dependent upon Fairfield's. We hope for a satisfactory conclusion.
In regard to the point that was made by the noble Lord, Lord Rea, he is aware of the appointment of the Committee under the noble Lord, Lord Geddes of Epsom. I am not yet aware when the Committee's Report will be received, but no doubt it will be of very great importance and consequence to the whole shipbuilding industry of the country. I have nothing further to add to what was said by the Chancellor of the Exchequer about the terms of the loan made through the Bank of England, except that I understand that of the £1 million that was made available, slightly less than half has been utilised.
§ THE EARL OF DUNDEEMy Lords, may I assure the noble Lord that I was not suggesting that there had been any undue delay, or that things were not proceeding as expeditiously as could be hoped. I only wondered why a Statement was made to-day which added nothing to what we had already been told a month ago. I thought I would give the noble Lord an opportunity to explain, if he wished to do so, why that was so.
§ LORD SHEPHERDMy Lords, I assumed that the noble Earl had been reading to-day's papers, in which I believe the matter of Fairfield's was quite prominently described.
§ THE EARL OF DUNDEEYes, my Lords, but we wondered about the situation. We only wanted to know why the Government were making this additional 418 statement. But I am very glad to hear that there is some hope of success.