§ Mr. Holt
To ask the Chancellor of the Duchy of Lancaster whether, pursuant to his statement on shipbuilding on 18 April,Official Report, column 554, he has anything further to add on the position of the Danish ferry contract with North East Shipbuilders Ltd.
§ Mr. Kenneth Clarke
There has been considerable difficulty with the Danish customer in recent months, arising mainly from the non-payment of instalments. Two weeks ago British Shipbuilders issued a formal demand that the outstanding payments be made by midnight on 20 April. That deadline passed with no payments having been made, and so BS has now cancelled contracts for five of the ferries. North East Shipbuilders will complete the vessels. The other contracts continue as normal.