HL Deb 13 October 1986 vol 480 cc521-2

2.50 p.m.

Lord Underhill

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

The Question was as follows:

To ask Her Majesty's Government what are their views on the future of Britain's sea ferry services.

Lord Brabazon of Tara

My Lords, the United Kingdom international passenger and freight ferries have for a long time been in a generally expanding market. There are good prospects for further growth, and while the Channel Tunnel would be expected to capture a substantial share on the shortest crossings once it becomes operational in the 1990s, a significant role for the ferries will remain and can be expected to expand over the longer term.

Lord Underhill

My Lords, while I appreciate the Minister's reply on the longer-term position, is it not the case that the unions concerned, including the officers' union, have said that the recent dispute in which 500 men were sacked without the slightest notice and without any consultation is a disgraceful situation which we should not be facing today? Is it not also the case that this dispute has spread into other ports and could spread even further? Have not the Government therefore a duty and responsibility to do something about it? Does it not confound all the statements that were made when we discussed the 1981 Act which gave powers of disposal of the Sealink operation to private interests?

Lord Brabazon of Tara

My Lords, I agree that the Sealink situation is a serious one at the moment. but I am glad to know that talks are still continuing. It would be wrong of me at this moment while talks are going ahead to make any firm statement on that matter. I hope that it will be resolved as soon as possible. I do not accept that the sale of Sealink was wrong. These decisions would have had to be made even if the company had remained in the hands of British Rail.

The Earl of Lauderdale

My Lords, has my noble friend any information to add to the reports that Sea Containers, the proprietor of Sealink, has suspended dividend payments?

Lord Brabazon of Tara

My Lords, I am aware of those reports, but I have no information other than what my noble friend has mentioned.

Lord Cledwyn of Penrhos

My Lords, in view of the reserve powers of the noble Lord's right honourable friend the Secretary of State for Transport under the 1981 Act, can he say whether this arbitrary and damaging decision by Sealink at Weymouth was reported to his right honourable friend? In view of the appallingly low morale in the ferry ports of Britain at the present time can he say what action his right honourable friend is taking?

Lord Brabazon of Tara

My Lords, as I understand it, my right honourable friend's power for taking action is not very great in this matter. He holds a golden share in Sealink, but that would come into play only if Sea Containers were to try to sell Sealink.

Lord Underhill

My Lords, it would seem from the Minister's reply that the Government are relying solely on the successful outcome of negotiations. At what stage do the Government think it essential to intervene to ensure the immediate future of our ferry services?

Lord Brabazon of Tara

My Lords, there is a good future for our ferry services. Sealink operates on nearly all its routes in intense competition with other companies; so the future of the ferry services is not in doubt.