§ Mr. Benceasked the Minister of Technology if shipbuilding credits can now be made available for home orders placed in British yards on the same terms as are available when these orders are placed in overseas yards.
§ Mr. BennThe Government have been considering the question of credit facilities for home orders for ships placed in British yards in the light of representations they have received from various quarters. We have decided that there is now a strong case for a credit scheme 131W for orders by British shipowners going beyond that recommended by the Geddes Committee but closely associated with measures for the reorganisation of the shipbuilding industry. The Shipbuilding Industry Bill which will be presented today will therefore include a provision enabling me, on the advice of the Shipbuilding Industry Board, to guarantee, in appropriate cases, loans to shipowners for the construction of ships in United Kingdom yards up to a total of £200 million at any one time. I am glad to say that my right hon. Friend the Chan- 132W cellor of the Exchequer has arranged for discussions to be held with the London Clearing and Scottish banks with a view to their agreeing to apply in such cases the same fixed lending rate, at present 5½ per cent., which they apply to medium term export credits enjoying the benefit of an E.C.G.D. guarantee. This will take the place of the more limited scheme recommended by the Geddes Committee.
This new scheme will both reinforce the reorganisation that is essential and give the shipbuilding industry a real opportunity to make itself competitive.