HC Deb 05 March 1990 vol 168 cc417-8W
Mr. Clay

To ask the Secretary of State for Trade and Industry on which dates his Department became aware that the following definitions of a permanent and irreversible closure in the European Commission sixth directive on shipbuilding of(a) a withdrawal of intervention fund by the relevant member state for a period of five years, (b) the cessation of vessel construction for a period of five years and (c) plans predicted on a resumption of vessel construction after a period of five years were not shared by the European Commission.

Mr. Douglas Hogg

[holding answer 27 February 1990]: Sir Leon Brittan's letter of 12 July 1989 to my right hon. Friend the Member for Braintree (Mr. Newton) made clear that the Commission required yards which have been closed as counterpart for aid to remain closed to the building of ships for five years, irrespective of the provision or otherwise of intervention fund grant subsidy. Sir Leon's letter to me of 15 February 1990 made it plain that he would not approve now a notification where the proposal was predicated on a return to shipbuilding after the expiry of the five-year period.

Mr. Clay

To ask the Secretary of State for Trade and Industry, pursuant to his reply to the hon. Member for Sunderland, South (Mr. Mullin) of 20 February,Official Report, column 783, if he will list how many jobs he expects will have been created in the Southwick area of the proposed Sunderland enterprise zone by (a) 31 December 1990, (b) 30 June 1991, (c) 31 December 1991, (d) 30 June 1992, (e) 31 December 1992, (f) 30 June 1993 and (g) 31 December 1993.

Mr. Douglas Hogg

[holding answer 27 February 1990]: It is not practicable to give a detailed breakdown of the timing of the jobs expected to be created within the Sunderland enterprise zone. This will depend on, among other things, the timetable on progress on the clearance, reclamation, and development of the sites concerned and on the plans and decisions of individual firms setting up within the zone.

Mr. Clay

To ask the Secretary of State for Trade and Industry what advice was given by officials of his Department to directors of NESL who wished to know, in May 1988, whether his Department might be sympathetic to a management buy-out of NESL.

Mr. Douglas Hogg

[holding answer 27 February 1990]: As a general principle, the Government would certainly not have been averse to any proposals for a management buy-out of North-East Shipbuilders Ltd. A number of other British Shipbuilders' facilities have indeed been sold on this basis. I am, however, not aware that any formal proposals were actually made by the management of NESL for such a buy-out in respect of that company.

Mr. Clay

To ask the Secretary of State for Trade and Industry what discussions his Department held with Mr. John Parker following the receipt of information that Mr. Parker was interested in assisting North South Bridge Consortium's proposals to acquire NESL in November 1988.

Mr. Douglas Hogg

[holding answer 27 February 1990]: None.

Mr. Clay

To ask the Secretary of State for Trade and Industry what information he has as to whether the letter of advice sent by the previous chairman to the right hon. Member for Braintree (Mr. Newton) on 3 July 1989 was read and agreed by the other executive board members of British Shipbuilders.

Mr. Douglas Hogg

[holding answer 27 February 1990]: That is a matter for British Shipbuilders.

Mr. Clay

To ask the Secretary of State for Trade and Industry (1) whether all relevant and significant matters discussed between officials of his Department and officials of the European Commission concerning the future of NESL between the statement to the House by the right hon. Member for Braintree (Mr. Newton) on 7 December and the right hon. Member for Braintree's meeting with Sir Leon Brittan on 27 June 1989 were drawn to the attention of Ministers of his Department;

(2) whether all relevant and significant matters discussed between officials of his Department and officials of the European Commission prior to the December 1988 agreement to close North East Shipbuilders Ltd were drawn to the attention of ministers of his Department prior to the finalisation of that agreement.

Mr. Douglas Hogg

[holding answer 27 February 1990]: Yes.

Mr. Clay

To ask the Secretary of State for Trade and Industry whether he will seek an assurance from Sir Leon Brittan that the interpretation which Sir Leon places on a declaration to the minutes of the Industry Council referred to in Sir Leon Brittan's letter to the hon. Member far Grantham (Mr. Hogg) of 15 February 1990 will be applied to any other member state of the European Community who contemplate the reopening of shipbuilding facilities.

Mr. Douglas Hogg

[holding answer 27 February 1990]: The EC's sixth directive on aid to shipbuilding is designed to ensure fair and equitable treatment throughout the Community in all aspects of shipbuilding support. I am sure, therefore, that the Commission will seek uniformity of treatment in respect of closed shipbuilding facilities within EC member states. We will certainly encourage it to do so.

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