§ Dr. GodmanTo ask the Chancellor of the Duchy of Lancaster what information he has to what sum of compensation was paid by British Shipbuilders Ltd. to Caledonian MacBrayne for errors in the design and construction of, the MV Isle of Mull; and if he will make a statement.
§ Mr. Atkins[holding answer 18 April 1988]: No compensation has yet been paid to the Scottish Transport Group though the basis for claims, which are likely to prove considerable, has been agreed. The taxpayer will also have to bear British Shipbuilders' costs for essential modifications to the vessel. These will also be considerable.
§ Dr. GodmanTo ask the Chancellor of the Duchy of Lancaster if he has any plans to reduce the annual state subsidy paid to British Shipbuilders Ltd.; and if he will make a statement.
§ Mr. Atkins[holding answer 18 April 1988]: Although no new decisions have been taken since last autumn on the level of annual state subsidy paid to the corporation, my right hon. and learned Friend the Chancellor of the Duchy of Lancaster has made it quite clear to the House that the costs of British Shipbuilders are far too high.