§ Mr. David PorterTo ask the Secretary of State for Scotland how much money his office is putting into the St. Helena ferry project for the Overseas Development Administration following the collapse of Hall Russell, Aberdeen; and if he will make a statement on his policy for subsidising Scottish shipyards.
§ Mr. Lang[holding answer 20 February 1989]: Hall Russell won the order for the St. Helena ship in open competition after full evaluation of the competing bids. When confirming the placing of the contract the Government were aware that Hall Russell could face financial difficulties if additional orders were not secured. In order for the contract to proceed in Aberdeen the Scottish Office agreed to make a contribution to the overseas aid programme in the event of additional costs above an agreed level being incurred. Additional costs will now inevitably arise because of receivership at Hall Russell, but the amount of any Scottish Office contribution has still to be determined.