55. Mr. Robert Hughesasked the Chancellor of the Duchy of Lancaster if he will now review the criteria for qualification for intervention fund support for merchant shipping orders.
§ Mr. Kenneth ClarkeOur policy towards yards privatised as naval yards is that intervention fund assistance for merchant orders will be considered only in exceptional circumstances based on the necessary maintenance of defence capacity. I am not persuaded that this policy should be modified in any way. The whole purpose of intervention fund assistance has been to ease the gradual reduction of excess capacity in merchant shipbuilding in this country. As the remaining merchant shipyards are still facing huge difficulties in finding new orders, I see no reason to subsidise an increase in capacity in the merchant sector.