§ Mr. John Robertsonasked the Minister of Technology if he will make a statement on the Paymaster General's official visit to Glasgow on Monday, 13th April.
§ Mr. Harold Lever:I went to Glasgow to meet representatives of the men employed in U.C.S. Limited, and to give them the Government's views on recent developments in the shipbuilding industry on the Upper Clyde. I also discussed the position with representatives of the Scottish Trades Union Congress. I said that the Government were determined that employment in shipbuilding on the Upper Clyde should be maintained at the highest possible level.
The U.C.S. management had made two decisions. First, they had reaffirmed their decision announced last summer that their labour force would have to be reduced, though to an extent which went somewhat beyond what was then announced. The second decision was to seek to sell their controlling interest in the Yarrow naval yard to another shipbuilding company.
The first decision was a consequence of their intention to base their merchant ship production on the building of bulk carriers and standard cargo ships. This decision is a sound one in the light of the prospective world demand for these types of ship. I deeply regret that this 12W production programme would not provide jobs for all those at present employed in merchant ship building on the Upper Clyde, but there seems no practicable alternative. The Government is considering in consultation with the other Ministers concerned what steps might be taken to help deal with any unemployment which might arise.
The decision to separate the Yarrow naval yard from the Upper Clyde group and merge it in another shipbuilding group would in the Government's view also improve the prospects for shipbuilding on the Upper Clyde, by enabling U.C.S. to concentrate their resources on making a success of their merchant shipbuilding programme and helping the Yarrow yard to obtain financial support outside the group.
Shipbuilding will continue to employ some 10,500 on the Upper Clyde. The U.C.S. management have told me that they will put the whole of their resources behind a vigorous programme of development of merchant shipbuilding in their remaining yards. They have booked substantial orders recently and have others in prospect. They are confident that given the full co-operation of the men they can make a success of this merchant shipbuilding programme and thus offer the best prospects in the long term for stable and secure employment at the highest possible level on the Upper Clyde.