§ Mr. Gordon Brown
asked the Secretary of State for Trade and Industry under what circumstances shipbuilding intervention fund support is now available to private sector yards; and what are his proposals for the future.
§ Mr. Giles Shaw
[pursuant to his reply, 5 December 1986]: Under the fifth directive, shipbuilding intervention fund support for merchant shipbuilders could be given only in return for restructuring of the industry, which faced considerable excess capacity. Therefore, the yards that were privatised or are now being returned to the private sector by British Shipbuilders are regarded as being taken out of the sector eligible for intervention fund support. The only circumstances in which the Commission agreed that it would consider cases for intervention fund support for the privatised yards was for reasons related to the maintenance of defence capacity. Other private sector yards are eligible. We expect the position on eligibility to continue under the sixth directive.