§ Mr. Shersby
asked the Secretary of State for Industry what financial assistance is available to British shipowners to enable them to have their ships built in British yards.
§ Mr. Butcher
The home shipbuilding credit guarantee scheme under section 10 of the Industry Act 1972 makes credit available to United Kingdom shipowners ordering in United Kingdom yards. The current terms provide for credit of 80 per cent. of contract price repayable over up to eight and a half years from delivery at a fixed interest rate of 7.5 per cent. United Kingdom shipowners ordering in United Kingdom yards benefit from the home shipbuilding credit guarantee scheme under which credit is made available at 80 per cent. of contract price repayable at maximum, over eight and a half years from delivery, at a fixed interest rate of 7.5 per cent. These terms match the most favourable terms available to United Kingdom owners ordering abroad under the OECD export credit Understanding for ships. Prices for ships quoted by the United Kingdom shipbuilding industry also take into account the availability of intervention fund assistance.