HL Deb 26 June 1974 vol 352 cc1493-5

3.54 p.m.

LORD BESWICK

My Lords, with permission I will now repeat a Statement which is being made in another place by my right honourable friend the Secretary of State for Industry:

" As the House will know Court Line, which owns shipyards and Clark-sons and Horizon Tours, have approached the Government for assistance to deal with financial difficulties which might have threatened employment in the shipyards and the order book for ships, and the many hundreds Of thousand of people now booked to go no holiday tours this summer.

"The Government are ready to acquire the entire shipbuilding and ship-repairing interests of Court Shipbuilders and consider that this should release sufficient cash flow to safeguard the remainder of Court Line's interests, including the holidays booked for this summer. Further details are being worked out and I will make a fuller statement as soon as possible ".

LORD STRATHCONA AND MOUNT ROYAL

My Lords, we thank the noble Lord for repeating this Statement, and we welcome the undertaking to keep the House informed as the details emerge in time. Meanwhile, I should like to ask him one question. I should like to ask whether or not these assets are currently profit-earning.

LORD BYERS

My Lords, I have only two questions to ask the noble Lord. First, when does he think he will be in a position to make a further Statement? Secondly, in respect of those people who arc going on holiday immediately, is some bridging arrangement being made in order to provide the cash which may be necessary in the very short-term?

LORD BESWICK

My Lords, the answer to the question from the noble Lord, Lord Strathcona and Mount Royal, is that so far as the shipbuilding and ship-repairing side of Court Line's activities are concerned, I understand they are profitable. In reply to the noble Lord, Lord Byers, I would say that, on the understanding that the Government are prepared to take over this side of the business and make this money available, I gather that provision is being made by the banks to meet the situation.

LORD BLYTON

My Lords, is the Minister aware that Court Line's shares have now dropped down to 13p, that their shipyards are profitable and that the losses are occurring on the other subsidiaries? Is it not right, if we have to hail out private enterprise, that we ought to have some control over what we give wealth to?

LORD BESWICK

My Lords, my noble friend probably did not hear exactly what I said. What I said was that the Government are prepared to acquire the entire shipbuilding and ship-repairing interests; that is to say, they would own these interests.

LORD SHINWELL

My Lords, is my noble friend aware that the take-over of the Court Line shipbuilding firm is really a momentous announcement? May I ask him whether there has been any protest against this decision by the Government from the Confederation of British Industry; and, if not, why not?

LORD BESWICK

My Lords, as my noble friend said, this is quite an important step to take, and because it is so important the Confederation of British Industry and the T.U.C. were invited to comment as to the propriety and suitability of this operation. The T.U.C. were concerned about the security of the jobs involved, and approved the idea. The C.B.I. said they were not in a position to make any comment.

LORD DAVIES OF LEEK

My Lords, is my noble friend aware that the kind of problem which is illustrated by his answer is not a problem of any specific philosophy of politics, either communism or capitalism, but is a problem, which is now universal, of industrialism? Consequently, is it not time that all sides, politically speaking, got down to the modern problem of industrialism, because what is happening now is that the taxpayer is socialising all the losses and industry is allowed to privatise the profits.

LORD BESWICK

My Lords, I think my noble friend is right in saying that there is a basic problem here which extends beyond this particular company, and it would be useful if the public debate on this issue of public ownership was conducted with that in mind.