§ Mr. Skeetasked the Secretary of State for Industry what methods of support, aid or grants are available to the shipbuilding industry in the United Kingdom which are compatible with EEC and GATT obligations.
§ Mr. Les HuckfieldThe United Kingdom shipbuilding industry has access to cost escalation insurance and credit facilities for both home and export orders; and benefits from shipbuilders' relief which is a rebate of indirect taxes. In addition, the industry is eligible for assistance under the Industry Act 1972. In particular the Government announced on 24th February the introduction of a £65 million fund under Part II of the Industry 31W Act 1972 to assist the yards in Britain to obtain orders. All these measures are considered to be compatible with our international obligations.
§ Mr. Skeetasked the Secretary of State for Industry what he assesses to be the total volume of orders likely to be available on the world market for the construction of merchant ships in the foreseeable future.
§ Mr. Les HuckfieldThe volume of new orders placed world-wide in 1975 and 1976 has been of the order of 13 to 14 million gross tons annually. The level of ordering is not expected to increase significantly before the end of the decade.
§ Mr. Skeetasked the Secretary of State for Industry (1) what he considers to be a realistic capacity for the shipbuilding industry constructing merchant shipping in the context of world market conditions on national requirements; and whether he sees any reason to depart from the assessments made in the Booz Allen Report of 1974;
(2) how he proposes to reduce the British shipbuilding industry to a viable size bearing in mind current over-capacity and diminished international orders.
§ Mr. Les HuckfieldThe Government's aim is to maintain the maximum capacity in the British shipbuilding industry compatible with market prospects. The Booz Allen report was based on information available in 1972 which is now considerably outdated.
§ Mr. Skeetasked the Secretary of State for Industry whether it is the intention of the Government to invest State moneys more heavily in the profitable shipbuilding companies in the United Kingdom or in those companies which have failed to secure orders; or whether it is their policy to aid all the recently acquired companies indiscriminately or subject to performance criteria.
§ Mr. Les HuckfieldAny Government assistance to shipbuilding companies will be made on a selective basis and will take into account performance and profitability.
§ Mr. Trotterasked the Secretary of State for Industry when the steering committee for the nationalised shipbuilding 32W industry was set up; and what has delayed the decision as to the location of the future headquarters for the industry.
§ Mr. Les HuckfieldI refer the hon. Member to my replies on 18th January and 6th April.
§ Mr. Skeetasked the Secretary of State for Industry what will be the effect of the recent defence cuts upon the ordering of ships in British yards; and how many of the United Kingdom yards are predominantly enaged on defence contracts.
§ Mr. DuffyI have been asked to reply.
At present the Royal Navy has two ASW cruisers, three nuclear powered submarines, seven Type 42 destroyers, three Type 21 and three Type 22 frigates and two mine countermeasures vessels under construction in United Kingdom shipyards in addition to a number of smaller vessels. This programme remains unaffected by the recent public expenditure cuts. As regards the future warship building programme, I have nothing to add to the Statement on the Defence Estimates for 1977 (Command 6735). Three United Kingdom ship yards are predominantly engaged in the warship building programme: the three specialist yards of Vosper Thornycroft, Yarrows and Vickers. In addition a substantial proportion of Swan Hunters current work is for the Royal Navy.
§ Mr. Skeetasked the Secretary of State for Industry what is the output of British shipbuilding yards per annum for naval vessels including those required to satisfy orders from overseas buyers.
§ Mr. DuffyI have been asked to reply.
Completed warships accepted by the Royal Navy or for export from 1971–76 were as follows:
The figures for warships completed for export in 1976–77 are not yet available. The Royal Navy accepted three vessels.
1971–72 5 1972–73 5 1973–74 7 1974–75 5 1975–76 3 It would be difficult to arrive at an average figure for annual output, as warships take longer than a year to complete, the number of export orders in particular 33W is variable, and warship-building is not confined to the specialist war shipbuilding yards.