HC Deb 09 March 1978 vol 945 cc726-8W
Mr. Skeet

asked the Secretary of State for Industry (1) whether he has authorised or proposes to authorise British Shipbuilders under Section 3 (1) (b) of the Aircraft and Shipbuilding Industries Act 1977 to manufacture in the United Kingdom under licence medium-speed diesel engines of foreign design as distinct from slow-speed engines for marine propulsion;

(2) on the presumption that there is world over-capacity in the building of medium-speed diesel engines and that 80 per cent. of the United Kingdom industry's output is exported, whether he will take into account the existing capacity in the United Kingdom to manufacture such engines for supplying the domestic market before permitting or authorising British Shipbuilders or any of its subsidiaries to manufacture such engines or foreign engines under licence;

(3) whether any of the companies recently nationalised under the Aircraft and Shipbuilding Industries Act 1977, and set out in the second schedule to the Act, manufactured medium-speed diesel engines at the date they vested in British Shipbuilders;

(4) whether British Shipbuilders will notify him if it or any of its subsidiaries extend its or their sphere of operations into the manufacture of medium-speed diesel engines under foreign licence.

Mr. Les Huckfield

British Shipbuilders advises me that at vesting day certain of its wholly-owned subsidiaries were carrying on activities relating to medium-speed diesel engines, and that it does not consider that it requires consent under Section 3(1)(b) of the Aircraft and Shipbuilding Industries Act 1977 to engage in that business. British Shipbuilders' corporate plan will cover its activities in this field, and in considering it my right hon. Friend will take account of the effect of its operations on existing private sector manufacturers.

Mr. Skeet

asked the Secretary of State for Industry whether either Harland and Wolff Ltd. or Doxford Engines Ltd., which was excluded from the Aircraft and Shipbuilding Industries Act 1977, manufactured medium-speed diesel engines at the time the several shipbuilding companies listed in Schedule 2 to the Act vested in British Shipbuilders.

Mr. Les Huckfield

My right hon. Friend the Secretary of State for Northern Ireland is responsible for Harland and Wolff. Doxford Engines Ltd., which came into the ownership of British Shipbuilders under the Aircraft and Shipbuilding Industries Act 1977 as a subsidiary of Sunderland Shipbuilders Ltd., was at that time carrying on certain activities relating to medium-speed diesel engines.

Mr. Skeet

asked the Secretary of State for Industry, on the assumption that Hawthorn Leslie Engineering Ltd., G. Clark and NEM Ltd., Doxford Engines Ltd. and Harland and Wolff Ltd. manufacture medium-speed diesel engines, what is his estimate of the effect of their decision upon employment in existing manufacturers of such engines in the private sector.

Mr. Les Huckfield

My right hon. Friend the Secretary of State for Northern Ireland is responsible for Harland and Wolff. British Shipbuilders informs me that the main reason for production of medium-speed diesel engines by its subsidiaries is to meet customer requirements for foreign designs of engine which would otherwise be supplied from overseas. If that happened, no United Kingdom manufacturer of marine engines would benefit.