§ Mr. Mellorasked the Secretary of State for Transport what immediate steps he proposes to deal with the urgent financial problems of the Port of London Authority and the Mersey Docks and Harbour Company.
§ Mr. FowlerBoth authorities are engaged on urgent studies of the steps needed both in the short and longer86W term to restore these ports to economic viability, and of the financial resources required to secure this in each case. This work is being done with the help of accountants appointed by me and I expect to receive the further proposals by the beginning of March.
In the meantime, both port authorities have made it clear that a large part of their current operating losses arises from the costs of employing people for whom there is no work now, and unlikely to be work in the future. Substantial numbers of severances are an urgent necessity in both ports if PLA and MDHC are to return to viability.
The two port authorities have concluded that it would be right for registered dock workers in the two ports to be offered for a limited period a special supplement to the severance payments currently available under the industry's national voluntary severance scheme.
These special supplements, up to £5,500 per man, will be available for a maximum of two months and will be financed separately from the NVSS. In recognition of the special financial and structural problems of these two ports, I have agreed, as a once-and-for-all measure, to provide sufficient funds for this purpose.
I shall be introducing legislation to authorise the necessary expenditure as soon as possible. The Government will not be taking any further decisions affecting the two port authorities until after I have received and considered their further plans and proposals.