HC Deb 02 July 1971 vol 820 cc222-3W
Mr. Douglas

asked the Secretary of State for Trade and Industry whether any new company acquiring the assets of Upper Clyde Shipbuilders will be entitled to the full range of incentives offered by the special development area of West Central Scotland.

Mr. John Davies

Such a company would be eligible to apply for appropriate assistance under the Local Employment Acts. As the hon. Member knows, however, the present range of special development area incentives were designed to meet the particular needs of new incoming industry.

Mr. Douglas

asked the Secretary of State for Trade and Industry if he will publish the communication between his Department and the Shipbuilding Industry Board's director on Upper Clyde Shipbuilders on 14th October, 1970.

Mr. John Davies

The Shipbuilding Industry Board Director discussed the position of the company with officials of my Department on 14th October. In the course of that discussion, he expressed doubts about whether the company should continue trading. No written communication passed between Mr. Mackenzie and the Department.

Mr. Douglas

asked the Secretary of State for Trade and Industry if he will state the progress which had been made in the capital reconstruction for Upper Clyde Shipbuilders before 3rd February, 1971.

Mr. John Davies

As I told the House on 11th February, the company was proposing a capital reconstruction to reflect the realities of its balance sheet but the precise details remained to be worked out. It did not prove possible to carry out this reconstruction before the company petitioned for liquidation. The capital reconstruction proposed did not involve the provision of new public funds to the company.

Mr. Douglas

asked the Secretary of State for Trade and Industry if the five shipowners involved in the hold up of recent guarantees relating to Upper Clyde Shipbuilders were directly informed.

Mr. John Davies

As I told the House on 15th June, I met representatives of the ship-owner customers of U.C.S. at the time when efforts were being made to strengthen U.C.S.'s position. I made clear to them then the Government's position on credit guarantees.

Mr. Douglas

asked the Secretary of State for Trade and Industry what sums have been paid to Upper Clyde Shipbuilders with respect to the guarantees held up between October, 1970, and February, 1971.

Mr. John Davies

Guarantees are given in respect of loans to shipowners. I cannot disclose what payments have been made by such owners to U.C.S.