HC Deb 05 July 1971 vol 820 cc233-7W
13. Mr. Sillars

asked the Secretary of State for Trade and Industry what representations he has received about the liquidation of Upper Clyde Shipbuilders Limited; and what replies he has sent.

56. Mr. Dempsey

asked the Secretary of State for Trade and Industry what is the nature of the representations he has received so far regarding the liquidation of Upper Clyde Shipbuilders Limited; what is the nature of his replies; and if he will make a statement.

Mr. Ridley

Besides the meetings with trade union representatives listed in the reply to the hon. Member for Glasgow, Bridgeton (Mr. James Bennett) on 28th June, my right hon. Friend was with the Prime Minister when he met the Lord Provost of Glasgow on 24th June. We have also received over 75 letters or telegrams relating to the liquidation of Upper Clyde Shipbuilders Ltd. Replies to individual letters have depended on the subject matter but in general we have explained the Government's aims in relation to shipbuilding on the Upper Clyde and the action which the Government have taken.

22. Mr. Buchanan

asked the Secretary of State for Trade and Industry if he will give an estimate of the redundancies at Upper Clyde Shipbuilders Limited after the forthcoming reorganisation.

Mr. John Davies

At this stage it is not possible to forecast the position after reconstruction.

26. Dr. Miller

asked the Secretary of State for Trade and Industry what arrangements he made between 1st November, 1970, and 14th June, 1971, to be kept informed about the affairs of Upper Clyde Shipbuilders Limited.

Mr. John Davies

I have nothing to add to my replies to the hon. Member for Glasgow, Craigton (Mr. Millan), to the hon. Member for Clackmannan and East Stirlingshire (Mr. Douglas) and other hon. Members on 28th June.

42. Mr. John Smith

asked the Secretary of State for Trade and Industry what expert advice was available to him in dealing with the affairs of Upper Clyde Shipbuilders Limited before its liquidation.

Mr. Ridley

Technical, financial and legal advice was available to me from within the resources of the Department and of the Government generally, and also from the Shipbuilding Industry Board.

68. Mr. Millan

asked the Secretary of State for Trade and Industry what official discussions he has had with the provisional liquidator of Upper Clyde Shipbuilders Limited.

Mr. John Davies

When 1 met the provisional liquidator on 17th June he agreed, subject to his responsibilities to the company's creditors, to co-operate in the arrangements the Government were making. My Department remains in close touch with him, and I shall be meeting him again in due course.

73. Mr. Douglas

asked the Secretary of State for Trade and Industry if he will make a statement on the steps taken by his Department to achieve a capital reconstruction of Upper Clyde Ship builders Limited.

Mr. Ridley

Discussions over the period November, 1970, to January, 1971, led to our being prepared to participate in a capital reconstruction of U.C.S. It was for the company to translate this into action; but this was not achieved before it petitioned for liquidation.

74. Mr. Buchan

asked the Secretary of State for Trade and Industry if he will make a statement about employment prospects at Upper Clyde Shipbuilders Limited.

Mr. Ridley

I would refer the hon. Member to the answer given today to the hon. Member for Glasgow, Springburn (Mr. Buchanan).

75. Mr. Dalyell

asked the Secretary of State for Trade and Industry what action he is taking to improve the machinery whereby he gets advance warning of situations, such as Upper Clyde Ship builders Limited, in which the Government have a substantial proportion of the shares.

Mr. Ridley

We are satisfied with the detailed arrangements for obtaining information which, in relation to U.C.S. Ltd. were set out in my right hon. Friend's answer to the hon. Member for Glasgow, Craigton (Mr. Millan) on 28th June, 1971.

Mr. Millan

asked the Secretary of State for Trade and Industry on what dates since 1st October, 1970,. Mr. Mackenzie, the Shipbuilding Industry Board Director of Upper Clyde Shipbuilders Limited, has had meetings with Ministers or officials of his Department; and what matters were discussed.

Mr. John Davies

Meetings at which both. Mr. Mackenzie and Ministers or officials of my Department were present took place on 14th and 27th October, 19th and 26th November and 23rd December, 1970, and 5th and 14th January, 23rd March, 14th April, 5th May and 8th June, 1971. At all of these meetings the position and progress of the company were discussed.

Mr. Buchan

asked the Secretary of State for Trade and Industry what reply he has sent to the request by the Presbytery of Greenock that there should be a full-scale inquiry into the liquidation of the Upper Clyde Shipbuilders Limited.

Mr. John Davies

I have told the Prestbytery of Greenock that I do not consider that a public inquiry would add significantly to the information already made public.

Mr. Douglas

asked the Secretary of State for Trade and Industry if he will publish the terms of reference of the Shipbuilding Industry Board's director on Upper Clyde Shipbuilders.

Mr. John Davies

The director nominated to the Board of Upper Clyde Shipbuilders Ltd. by the Shipbuilding Industry Board had the same formal responsibilities as any other director of the Company. In addition, he was expected to keep the Shipbuilding Industry Board generally informed of the affairs of Upper Clyde Shipbuilders Ltd., and did so.

Mr. Douglas

asked the Secretary of State for Trade and Industry (1) if he will state the information available to his Department regarding the Upper Clyde Shipbuilders which enabled the shipbuilding guarantees to be resumed on 3rd February, 1971;

(2) what information was supplied to him by the Shipbuilding Industry Board's director on the Upper Clyde Shipbuilders' Board which enabled the shipowners' credits to be resumed on 3rd February, 1971.

Mr. John Davies

I had a copy of the survey made by the company of its financial position on 18th November, 1970. which included cash flow forecasts, profit and loss projections and net assets projections. The company subsequently informed me of its success in negotiating increased prices from shipowners, and, as I announced to the House on 11th February, was confident of its ability to achieve a viable future.