HC Deb 25 November 1986 vol 106 cc158-9W
Sir Edward du Cann

asked the Prime Minister what information she has about the tonnage by which the United Kingdom owned and registered merchant trading fleet has been reduced in the past 12 months; what assessment she has made of the adequacy of the remaining fleet to meet the United Kingdom's national defence requirements, including those for civil resupply; and if she will make a statement.

The Prime Minister

The tonnage of this fleet decreased by 5.4 million dwt in the year ending September 1986.

There are sufficient vessels to meet Ministry of Defence requirements. The ability of the fleet to meet those requirements is monitored closely by the Ministry of Defence and the Department of Transport. The availability of merchant shipping to meet civil supply needs has to be assessed in terms of the capability of NATO, since the Alliance has a long-standing agreement to pool its merchant shipping in war.

Sir Edward du Cann

asked the Prime Minister what information she has about the present level of investment in the British-owned merchant fleet; and what assessment Her Majesty's Government have made of the adequacy of this for the creation of a future merchant fleet of a size and composition to meet the requirements of national defence partners.

The Prime Minister

In 1985 capital expenditure by the United Kingdom shipping industry on new and secondhand ships was £346 million net of disposals. In the first and second quarters of 1986, the figures were £89 million and £38 million respectively. These figures do not cover investment in ships owned by overseas subsidiaries and associate companies of United Kingdom concerns. Details were given in articles published inBritish Business on 5 and 26 September this year, copies of which are in the Library.

The "Statement on the Defence Estimates" figures in 1986 reported that a study carried out by consultants last year of future trends for those parts of the merchant fleet for which there is a defence requirement, indicated that for the foreseeable future most of these requirements were likely to be met, and that the situation was being monitored closely. The requirements for civil supply have to be viewed in NATO terms, and take into account overall NATO demand and NATO supply including overseas registered shipping beneficially owned in NATO countries and other factors such as future investment and manning, NATO wide. We are pursuing these matters with our NATO allies.

Sir Edward du Cann

asked the Prime Minister what information she has about trends in the size of the merchant shipping fleets of other member countries of the North Atlantic Alliance; and when she next expects to have an opportunity to discuss the defence implications of these trends with the leaders of the United Kingdom's North Atlantic Treaty Organisation partners.

The Prime Minister

In 1985 the total tonnage of the merchant fleets of NATO members fell by 30.7 million dwt.

The NATO Planning Board for Ocean Shipping has drawn the attention of the North Atlantic Council to the implications for the Alliance of this trend, and indicated possible remedial measures. I anticipate an early discussion of the matter in the Council.

Sir Edward du Cann

asked the Prime Minister if she will list in the Official Report the Government Departments responsible for the policy issues arising from the decline of the United Kingdom-owned and registered merchant fleet; and whether she is satisfied with the co-ordination between them.

The Prime Minister

The Department of Transport takes the lead in co-ordinating policies in respect of the United Kingdom merchant fleet, while other Departments may have a primary role in related policy areas. There is full co-ordination between Departments.