British Shipping: Government Support (Hansard, 25 April 1991)

§ Lord Cavendish of Furness
My Lords, in recent years the Government have introduced a range of measures to support and improve British shipping. On the one hand, we regulate the industry to ensure that it operates to the highest standards of safety, efficiency and working conditions; on the other hand, we take every opportunity to encourage the removal of restrictions to healthy competition both at home and abroad. It is a continuing process carried out in close consultation with interested parties.

§ Lord Jay
My Lords, despite that, does the Minister realise that the British merchant fleet has declined disturbingly close to total extinction? That situation is serious nationally from both a defence and economic point of view, and the industry requires more substantial fiscal support than the Government have yet provided.

§ Lord Cavendish of Furness
My Lords, I accept that the shipping industry has declined. The mid-1980s was a period of deep depression for most of the world's shipping industry. The previous Budget introduced changes that were designed to help the shipping industry and other recent measures have been taken. The joint working party was established by the Government and the British shipping industry in May 1990 and was chaired by the then Secretary of State and Sir Jeffrey Sterling (as he then was). He is now a Member of your Lordships' House. Its report concluded that: British shipping is lean and fit. It is a vital national asset. The industry is well placed to take advantage of growth and world trade in the right conditions".

§ Baroness Fisher of Rednal
My Lords, did the Minister hear the noble Lord, Lord Sterling, speak on television? The noble Lord, Lord Sterling, said that he was amazed to find that the fleet was down to only 64 ships, and that the majority of our exports are being carried in ships sailing under flags of convenience.

§ Lord Cavendish of Furness
My Lords, according to my figures, we are not down to 64 ships. We come halfway in the league table of trading nations.

§ Lord Clinton-Davis
My Lords, the Minister is right in saying that the British fleet is lean. However, it is far from fit. Is it not a fact that during the past decade the fleet has declined more rapidly than any of its major competitors? Is it not also a fact that, apart from one issue, the Government have totally ignored the recommendations contained in the joint working party's report? Is that not aiding and abetting the further decline of this precious industry?

§ Lord Cavendish of Furness
My Lords, I am sorry that the noble Lord takes issue with that distinguished working group. Every recommendation is being pursued.

§ Lord Clinton-Davis
My Lords, will the Minister indicate in what way they are being pursued? Did the Budget not present a perfectly adequate opportunity to act? The General Council of British Shipping made earnest entreaties to the Government to take urgent action. However, is it not a fact that, apart from accepting one recommendation, the Government in their Budget did nothing to honour the demands being made in the joint working party's report?

§ Lord Cavendish of Furness
My Lords, the Government believe that subsidies distort economic decisions and are not the way to encourage a healthy and competitive industry. We are working hard in Europe to encourage the reduction of subsidies elsewhere. Other recommendations accepted include the provision of assistance for the costs of Merchant Navy officer training. The scheme was introduced in 1989 under the Merchant Shipping Act 1988 and as a result cadet recruitment has tripled. Assistance was given to the cost of transporting UK crews to vessels in deep sea waters. There has been the simplification of technical registration requirements and surveyor guidelines. Other changes have been made which were part of the recommendations.

§ Lord Stoddart of Swindon
My Lords, is it correct that if once again the Falkland Islands were invaded by a Fascist dictator we could not mount a proper and successful rescue operation due to the huge reduction in the number of ships?

§ Lord Cavendish of Furness
My Lords, I am pleased to be able to reassure the noble Lord that in such an unhappy event we should be able to mount that operation.

§ Baroness Strange
My Lords, does the Minister agree that since the days of King Alfred we have been a maritime nation, that we are proud of our Merchant Navy and we hope that the Government will do all they can to support it?

§ Lord Cavendish of Furness
My Lords, I accept my noble friend's remarks. We continue to attach great importance to an important national asset.

§ Lord Molloy
My Lords, the Question asked by my noble friend Lady Fisher referred to the fact that some 372 industrialists are taking advantage of flags of convenience. That method undermines the British commercial fleet. Is anything being done about that activity? Is it necessary? If not, why are some industrialists showing such lack of faith in a British industry?

§ Lord Cavendish of Furness
My Lords, I agree that moves towards flags of convenience are regrettable and reduce standards. Indications show that as some of those flags of convenience become more responsible, they are declining in numbers.

§ Lord Jay
My Lords, is it not clear that great anxiety is felt about this issue by many Members of your Lordships' House? Will the Minister represent those anxieties to his senior colleagues?

§ Lord Cavendish of Furness
My Lords, I well understand the anxiety and I shall be pleased to do as the noble Lord asks.

§ Lord Greenway
My Lords, despite his recent reply, does the Minister agree that among the serious problems besetting our Merchant Navy is the increasingly important question of manning? Bearing in mind the recent regrettable decision to flag-out four of our container ships to the Bahamas, and to crew them with Filipinos with only the master and chief engineer being British, will the Government consider following in the footsteps of other countries such as Norway and Japan in setting up a training establishment in the Philippines or elsewhere in order to ensure that those crews are trained to the requisite standards?

§ Lord Cavendish of Furness
My Lords, I understand that steps have been taken to try to sort out the problem. I shall draw that interesting suggestion to the attention of my right honourable friend.