HC Deb 22 March 1990 vol 169 cc696-8W
Mr. Clay

To ask the Secretary of State for Trade and Industry how many of the 250 jobs referred to in the reply by the hon. Member for Darwen and Rossendale (Mr. Trippier) to the hon. Member for Sunderland, North, 20 July 1989,Official Report, column 346, arise from ship repair or ship conversion activities.

Mr. Douglas Hogg

[holding answer 14 March 1990]: Of the 250 jobs referred to, approximately 10 people were employed by a company which was primarily engaged in ship repair business.

Mr. Clay

To ask the Secretary of State for Trade and Industry if he will list the dates and purposes of visits to Norway during 1988 and 1989 by(a) Ministers of his Department and (b) civil servants of grade 5 or above.

Mr. Douglas Hogg

[holding answer 14 March 1990]: My right hon. Friend the Member for Braintree (Mr. Newton) visited Norway as Chancellor of the Duchy of Lancaster from 29 October to 1 November 1988 to discuss investment in the United Kingdom by Kvaerner Industrier and other Norwegian companies. He also announced that Kvaerner Govan Ltd. had placed orders with Clark Kincaid Ltd. for the engines for the first two gas ships to be built on the Clyde for their Norwegian clients. A number of other visits were made by DTI officials in the course of 1988 and 1989 for general discussions on bilateral issues and for discussions with Norwegian interests concerning the acquisition of United Kingdom shipbuilding capacity and ship and marine engine orders.

Mr. Clay

To ask the Secretary of State for Trade and Industry if he will set out the specific proposals of the Tyne and Wear development corporation for the redevelopment of the Southwick shipyard site in Sunderland.

Mr. Douglas Hogg

[holding answer 14 March 1990]: Detailed proposals depend on the outcome of negotiations with relevant parties. It is, however, the current intention of the development corporation to redevelop the Southwick shipyard site in Sunderland for general industrial uses.

Mr. Clay

To ask the Secretary of State for Trade and Industry if he will set out the various elements of state aid agreed by his Department in the disposal of the private sector of the British Shipbuilders facilities at(a) Govan, (b) Appledore, (c) Ailsa Ferguson (Troon), (d) Ferguson and (e) Clark Kincaid.

Mr. Douglas Hogg

[holding answer 14 March 1990]: The detailed terms of sale of the individual British Shipbuilders' companies are commercially confidential. Following is a summary of the net costs of disposal after taking account of the considerations paid in each case: (a) Govan Up to £25 million, including redundancy payments in respect of surplus staff, and a contribution to a programme of capital investment at the yard. (b) Appledore £3.4 million, including redundancy payments and costs arising from completion of existing work. (c) Ferguson-Ailsa (Troon) The assets of the Ailsa yard were sold on commerical terms, following closure of the company by British Shipbuilders. (d) Ferguson Net cost of disposal to British Shipbuilders was £3.8 million, primarily relating to the costs of redundancies at the yard. (e) Clark Kincaid £3.2 million, including redundancy payments, costs arising from completion of existing work, and a contribution to capital investment at the yard.

Mr. Clay

To ask the Secretary of State for Trade and Industry if he will update the estimate of the commercial costs to British Shipbuilders of closing North East Shipbuilders Ltd.

Mr. Douglas Hogg

[holding answer 14 March 1990]: A provision for an estimated extraordinary loss of £53.7 million relating to the closure of North East Shipbuilders Ltd. was made in the NESL accounts for 1987–88. A release of some of these provisions in the 1988–89 accounts has brought the estimated costs of closure down to £51 million. There may be further slight amendments in the 1989–90 accounts when published.

Mr. Clay

To ask the Secretary of State for Trade and Industry which riverside areas along the River Wear are affected by the advice of Sir Leon Brittan that a recommencement of shipbuilding would lead the European Commission to reconsider its agreement to the notification made by the British Government in December 1988.

Mr. Douglas Hogg

[holding answer 14 March 1990]: There is no specific delineation by the Commission of the European Communities of land on the River Wear on which it would regard a recommencement of shipbuilding as prompting a reopening of the December 1988 notification. The Commission has, however, indicated that a restart of shipbuilding in Sunderland in general terms, even on land outside the confines of North East Shipbuilders Limited, would lead it to look again at the overall package. This view is taken on the grounds that the remedial measures programme for Sunderland was approved on the basis of the loss of shipbuilding jobs in the town.