§ Mr. Gordon Brown
asked the Secretary of State for Trade and Industry if he will publish the most recent information available to him of the support for shipbuilders in (a) Japan, (b) Taiwan, (c) Korea and (d) all individual countries of the European Economic Community.
§ Mr. Giles Shaw
[pursuant to his reply, 5 December 1986]: There is no direct support to shipbuilders in Japan or South Korea. I will write to the hon. Member about Taiwan about which I have no information to hand.
The following is the current information on support for shipbuilders in the European Community:
- (a) Up to 20.5 per cent. of contract price from the Intervention Fund and 2 per cent. Shipbuilders Relief. The maximum may be increased by 5 per cent. for vessels over 70,000 dwt built in Northern Ireland.
- (b) Loss compensation in public sector yards.
- (c) Shipbuilding redundancy payments scheme.
- (d) Regional development grants.
- (e) Enterprise Companies.
- (a) No production subsidies.
- (b) 10 year plan from 1982 to take over redundancy payments to workers 55 and over.
- (c) The Economic Expansion Law, 1970, provides credit facilities for investment.
- (d) The Economic Expansion Law, 1970, provides interest free credits for the development of prototypes, new products and new production processes.
- (a) No direct production subsidies.
- (b) Loans from National Bank for new building at official discount rate 1.5–2 per cent.
- (c) Guarantees covering mortgages for small ships.
- (a) Production aids for:
- (i) small yards 10 per cent.;
- (ii) large and medium yards 20 per cent.
- (b) Aid for closures and reconversion.