BRITISH SHIPBUILDERS: WARSHIP SHIPYARDS (Hansard, 30 July 1980)

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

§ The MINISTER of STATE, DEPARTMENT of INDUSTRY (Viscount Trenchard
My Lords, as is well known, the Government are studying possible options for introducing private capital into British Shipbuilders. It is hoped to make a Statement before the Recess.

§ Lord BIRDWOOD
My Lords, I thank my noble friend for his prudent reply. Is he aware how much damage is being done to export prospects by the current uncertainty surrounding this industry?—and I refer in particular to the uncertainty surrounding British Shipbuilders as a commercial entity. I should also like to ask my noble friend whether any assurances were given to employee representatives of British Shipbuilders at the last pay settlement, that the group would be maintained intact.

§ Viscount TRENCHARD
My Lords, I am afraid that I shall not be helpful to my noble friend or to any other noble Lord. There was to have been the release of a Statement today on the financial position of British Shipbuilders, but it has been delayed by the congestion of parliamentary business. However, a Statement in some form will be released to Parliament before the Recess and, as I said in my original Answer, we very much hope to be able to make a Statement on privatisation and related matters.
Yes, I understand that uncertainty is never a good thing, but a proper foundation for the future of British Shipbuilders is important, and we intend to reach that situation. At the moment I cannot recall the detail of the assurances given to employees in relation to British Shipbuilders. We have all been in some doubt as to whether their advised tonnage in their preferred plan of 430,000 tonnes would prove realistic. I therefore believe that no absolute statement or guarantee was given to them. Their voluntary redundancy programme is a little behind-hand, but is otherwise going according to plan.

§ Lord SHINWELL
My Lords, I am sorry to trouble the House again, but this is a subject in which I have taken a profound interest for many years. Is the noble Viscount aware that, although I recognise that at the last election the Government were given a mandate which enabled them to dispose of certain nationalised and perhaps profitable interests, to dispose of these three shipyards, which for many years have been primarily associated with building war vessels, will have an adverse effect on the National Shipbuilding Corporation? If the Government proceed with this disposal, 876 we may as well abandon the National Shipbuilding Corporation and make up our minds that British shipbuilding has come to a dead end.

§ Viscount TRENCHARD
My Lords, I would not accept what the noble Lord has said. We do, of course, accept that in certain yards and in the warship area profits are being made. Should any move—and that decision has not been taken—be made towards privatisation of those profitable parts of British shipbuilding, account will, of course, be taken of that in relation to the plans and the targets for the very important remainder of British shipbuilding—and here we disagree with the noble Lord; we believe that a viable British shipbuilding industry is a possibility in those areas.

Lord BRUCE of DONINGTON
My Lords, as the noble Viscount is already on record as saying that mere changes of ownership have very little economic effect, will he ensure that when a Statement, which might conceivably provide for what he calls "privatisation", is made, the Statement will at the same time also contain particulars of the advantages that might conceivably accrue to both productivity and employment as a result of any change that might be thought necessary?

§ Viscount TRENCHARD
My Lords, we shall, as usual, give the reasons for any decisions we make when we release them.

§ Lord HANKEY
My Lords, would the Government bear in mind that, if they were to lay on further orders for warships, this would not only require the production of more steel and keep in existence steelyards which we shall certainly need if there is more international tension, but would also give more employment and strengthen an arm in which this country is at present dangerously weak?

§ Viscount TRENCHARD
My Lords, the importance of the public sector orders to British shipbuilders is well understood and is given every consideration.

§ Lord BIRDWOOD
My Lords, does my noble friend believe that his last answers are calculated to reassure would-be customers of British Shipbuilders?

§ Viscount TRENCHARD
My Lords, I think it well might reassure some. It depends upon your view of the past history of British Shipbuilders, and your confidence in this Administration to help British Shipbuilders improve their competitive position, which is what we are trying to do: many important factors have to be carefully weighed.