Mr. W. E. Garrettasked the Secretary of State for Industry if he will make a statement about the report by British Shipbuilders required by Section 5(3) of the Aircraft and Shipbuilding Industries Act 1977.
§ Mr. VarleyA report on the review of the affairs of the corporation has been submitted by British Shipbuilders and I have today laid copies before each House of Parliament. The report shows that British Shipbuilders have adopted the principle of the largest degree of decentralised management and decision taking compatible with public accountability and the need to enhance the competitiveness of the corporation which is operating in a severe world wide shipbuilding recession.
The report also shows that British Shipbuilders attach great importance to 243W their duty to promote industrial democracy. They see the starting place as the development of suitable procedures within each profit centre in accordance with overall guidelines to be established by the corporation in consultation with the relevant trade unions.
I have been encouraged to learn that the corporation and the CSEU have determined an objective of reaching agreement on the overall guidelines and framework of industrial democracy in the next month or so. I am anxious that progress should be made quickly and I have asked British Shipbuilders to let me have a further report on the promotion of industrial democracy by 1st July, which will also be laid before each House of Parliament. British Shipbuilders will also keep closely in touch with my Department on the development of their thinking on organisation.