§ Mr. Skeetasked the Secretary of State for Trade and Industry if he will set out in the OFFICIAL REPORT details of the new European Economic Community directive concerning assistance to shipbuilders in the European Economic Community and the steps that have been and are being taken to harmonise aid in the interests of fair competition within the industry; and what is the policy of Her Majesty's Government in relation to these matters.
§ Sir J. EdenAs is well known, the Government's general policy is to support efforts to reach international agreement on proposals for dealing with factors distorting competition in the shipbuilding market.
The Community has under consideration a new draft directive on shipbuilding aids on which we are being consulted. In brief, under this draft directive, Community countries would be asked to continue to adhere to the O.E.C.D. Export Credit Understanding for Ships; to limit aids directly affecting shipbuilding costs to specified proportions of the contract price; and to refrain from instituting any measures stipulating that shipbuilding or manufacture of products incorporated in ships must be effected within their national territory.