§ Mr. SumbergTo ask the President of the Board of Trade what changes he proposes to make to the rules governing the shipbuilding intervention fund.
§ Mr. SainsburyAs a result of representations made by the Shipbuilders and Shiprepairers Association, I have examined the rules of the shipbuilding intervention fund. Since the inception of the scheme in 1977, shipbuilders have not been allowed to make a profit on such contracts, which had to be taken at break-even prices. However, where a shipbuilder could show that he had made a profit as a result of an improvement in efficiency, he was allowed to retain 50 per cent. of the profit, the remainder being clawed back by the Department. I have now decided that it is desirable that shipbuilders should benefit from any profit they make, and the rules of the scheme have been simplified to allow grant from the fund to be paid at the maximum permitted level for the size of ship, less 2 per cent. for shipbuilders relief. based on the actual final cost, provided that the sum does not exceed the amount specified in the offer letter. The change took effect on 1 April.