§ "With your permission, Mr. Speaker, and with that of the House, I wish to make a Statement on Harland and Wolff, on behalf of my right honourable Friend the Secretary of State, who is at this moment in Northern Ireland, where he will be speaking to representatives of the firm's management and labour. The firm is facing increasingly serious financial difficulties.
§ "The right honourable Member for Cambridgeshire informed tie House on December 21, 1973, before the completion of detailed discussions with Harland and Wolff, about proposals to provide further financial support to the company. My right honourable Friend investigated the matter in March, 1974. Subsequent discussions revealed the company's continuing inability to meet its production targets and the inadequacy of the previous proposals for providing it with further assistance. Revised figures were received on July 5. The financial consequences of these are quite clear. If the company is to continue trading, further Government financial support is required urgently. The amount involved, which cannot yet be calculated precisely, is likely to be very substantially in excess of that considered necessary last December. The proposal then was that £10 million of debt owed to the Government should be replaced by the issue to the Government of shares; and that the Government should provide guarantee facilities for up to £10 million as needed up to the end of 1976.
§ "Harland and Wolff occupies a unique place in the Northern Ireland economy. It is the largest single manufacturing employer, providing between 5 per cent. and 6 per cent. of all jobs in the manufacturing sector. Since 1966 the Company has received financial assistance totalling £68 million from both the United Kingdom and former Northern Ireland Governments, by way of standard and special grants, loan and equity participation.
§ "It is against the special Northern Ireland background that the Government's proposals for dealing with the present situation should be viewed.
§ "The Northern Ireland Department of Commerce already holds 47.6 per cent. of the company's equity. With a view to providing additional finance and in order to bring about 1440 the changes which the Government believes to be necessary, we have decided to extend that holding. This will be achieved, subject to the approval of the shareholders, by the acquisition of additional shares in the company to give the Government a substantial majority in an expanded equity; this will be effected under Section 7 of the Industry Act 1972. It is not envisaged that this will involve the acquisition of shares from existing private shareholders. The Industrial Development Advisory Board has been informed of the general situation. Because of the urgency of the matter we are adopting this relatively simple course; but the possibility of proceeding to full public ownership in Northern Ireland at a later date is not precluded. Meanwhile, we shall have a large enough stage to ensure control. Initially the additional equity will need to be held by Her Majesty's Government, but it is clearly most desirable that, in the longer term, the responsibility for this Northern Ireland registered company, which is such a prominent feature of the Ulster economy, should rest completely in Northern Ireland. The detailed arrangements are being worked out in consultation with the company and its advisers and I would hope to report further to the House in due course.
§ "The Government intend that there shall be a comprehensive review of Harland's management structure and resources, a full examination of the order book, a temporary moratorium on any new ship-building orders, strenuous action to reduce overheads and the implementation of realistic manpower policies and training arrangements capable of securing any necessary increase in the labour force in a manner compatible with the manpower needs of the rest of industry in Northern Ireland and with the untapped resources of the Northern Ireland labour market. For example, it will be important to increase greatly the volume of apprentice training in order to ensure a succession of skill in the yard and spread the opportunity for the acquisition of skill more widely within the community.
§ "To achieve these changes and improvements we need to advance towards genuine worker participation in all the decision making processes of the company. I have already talked at length to management and unions, and it is my intention, in consultation with the management of the company, the shop stewards in the yard, the Northern Ireland trades unions and the T.U.C. to consider full participation in management by representatives of all employed in the firm. I shall begin the detailed discussions to-morrow in meetings with the 200 or more shop stewards in the yard and with a similar number of men from the middle management of the company. I am convinced that if we can achieve this participation in management, along with a return to full collective bargaining, we shall be laying a solid foundation for the introduction of whatever measures are needed to obtain the increases in productivity which are essential to the company's survival. Comprehensive machinery will be instituted to monitor progress in implementing all these developments.
1441§ "This is a rescue operation. The consequences for Belfast and Northern Ireland of allowing the yard to close, as it would have to do if the Government did not intervene, would be disastrous. Nevertheless, this must not be regarded by those working for the company as an open-ended Government subvention. This is being done for the sake of Northern Ireland and the only way it can be done is by finding, to the extent necessary, compensating off-setting savings in public expenditure from within the Province. These will be achieved without departing from parity in the cash social services and without detriment to the Government's social and economic objectives for the areas of especially severe unemployment.
§ "While earlier expectations in regard to the performance of Harland and Wolff have not been fulfilled, the modernisation and re-equipment programme has proceeded apace and the shipyard is now one of the best equipped in Europe. It remains to harness the skill, pride and latent enthusiasm of all those employed in the firm to achieve the immense potential of the undertaking."