HC Deb 20 July 1989 vol 157 cc271-3W
Mr. Clay

To ask the Chancellor of the Duchy of Lancaster how many letters his Department(a) received from the Anglo-Greek bidders for NESL between 1 January and 30 June and (b) sent to the Anglo-Greek bidders for NESL between 1 January and 30 June.

Mr. Newton

One letter was sent and a reply received. The Department also received copies of certain correspondence between the bidders and British Shipbuilders.

Mr. Clay

To ask the Chancellor of the Duchy of Lancaster on how many occasions during(a) 1988 and (b) 1989 (i) the right hon. and learned Member for Rushcliffe (Mr. Clarke) and (ii) himself met representatives of interests bidding for NESL.

Mr. Newton

The only such meeting was between myself and one of the interests in bidding for the yards, at their request, on 11 May 1989.

Mr. Clay

To ask the Chancellor of the Duchy of Lancaster, pursuant to his reply to the hon. Member for Dagenham (Mr. Gould), 13 July,Official Report, column

(7) what is the total number of redundancies in the shipbuilding and ship repair industries in the county of Cleveland since 1 January 1984.

Mr. Atkins

The European Commission has stipulated that grants can be based on up to 3200 ecu for each qualifying job loss in shipbuilding or ship repair. At prevailing exchange rates this would amount to £13.25 million for Plymouth, £1.34 million for Gibraltar and £14.5 million for Strathclyde.

The information supplied by the Government in support of the applications related to the criteria for eligibility set out in the Renaval regulation, (EEC) No. 2506/8.

The information requested on unemployment rates and industrial employment is as follows:

1151, if he will specify (a) on what day in May a second shipbuilding bid was received for NESL and (b) whether this bid was in writing at that time.

Mr. Newton

British Shipbuilders received a formal offer in writing on 3 May.

Mr. Clay

To ask the Chancellor of the Duchy of Lancaster, pursuant to his reply to the hon. Member for Dagenham (Mr. Gould), 13 July,Official Report, column 1151, on what day an approach was made by officials of his Department to the Commission concerning a shipbuilding bid for NESL.

Mr. Newton

My officials saw Commission officials on 10 April following British Shipbuilders receipt of the first offer concerning shipbuilding on 6 April.

Mr. Clay

To ask the Chancellor of the Duchy of Lancaster what were(a) the terms of credit agreed by his Department for the contract for two vessels to be built at the Govan yard for the Cosco company of the People's Republic of China and (b) the terms of credit requested by Cuban shipping interests in connection with their inquiries for NESL for 10 SDIS King cargo ships.

Mr. Newton

The credit terms for the two ships presently being completed at Kvaerner Govan Ltd. on behalf of British Shipbuilders for Cosco are financed under the £300 million financial arrangement relating to development loans signed between Her Majesty's Government and the Government of China in May 1986. Under this arrangement 20 years' credit is available for the whole value of a transaction at an interest rate of 5 per cent. with a five-year moratorium. Acemex on behalf of Mambisa was looking for standard OECD shipping terms of 8 per cent. for 80 per cent. of the price of 10 ships with credit stretched from 8½ to 15 years. It was also looking for credit for the 20 per cent. deposit on the best terms available.