HL Deb 25 January 1971 vol 314 cc705-7
LORD SHINWELL

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether it is intended to continue the credit and other financial facilities to the shipbuilding industry which have been in operation for several years.]

THE MINISTER WITHOUT PORT-FOLIO (LORD DRUMALBYN)

My Lords, the Government are reviewing the situation, but meantime, as announced on July 24, have stated their intention to raise to £600 million the limit on credit guarantees to United Kingdom yards. I cannot say more than this in advance of the completion of the Government's review.

LORD SHINWELL

My Lords, the noble Lord will recognise that that Answer goes some way in my direction and in the direction of providing some assistance to the shipbuilding industry of the country. But does he also recognise that although the shipbuilding yards have a substantial number of orders at the present time they are very much concerned about the severity of competition which faces them from those other countries where shipbuilding receives facilities of a credit character, and also a vast amount of subsidy? Will the noble Lord take that into consideration?

LORD DRUMALBYN

Yes, my Lords; I am sure the Government will take this into consideration in the review which they are making.

LORD SHINWELL

My Lords, may I put this further supplementary question? Is anything being done about the position of Upper Clyde Shipbuilders and the position on the North-East coast, where they are faced with unprofitability because of fixed charges when tendering for orders?

LORD DRUMALBYN

My Lords, Her Majesty's Government are in touch with the Upper Clyde Shipbuiders' position at the present time.

LORD SLATER

My Lords, in view of the supplementary question from my noble friend Lord Shinwell, will the noble Lord not forget that if it had not been for the support that was given by the previous Government in regard to the Furness Shipyard between 2,000 and 3,000 people would have been unemployed at that particular time but were taken over by the shipbuilding organisation?

LORD DRUMALBYN

My Lords, I am sure that this is one of the considerations which will be in the mind of the Government in making their review.

Forward to