§ Lord Inglewoodasked Her Majesty's Government:
Whether, in the discussion with the European Commission about the possible extension of intervention funding, under the 5th Shipbuilding Directive, to "military" yards, any extension will embrace all such United Kingdom yards, and that VSEL at Barrow will be treated evenhandledly with all other yards in this category.
§ Viscount GoschenNegotiations with the European Commission have been under way since May of this year to attempt to obtain access to the Shipbuilding Intervention Fund for all warship builders. It has become clear that the Commission will not amend the 1985 agreement, which removed warshipbuilders's entitlement to support for all four companies involved.
As a result of a number of discussions with DGIV, agreement has been reached on a proposal for making SIF available for Swan Hunter, subject to certain conditions.
It is expected that this proposal will be considered by the Commission before Christmas.
I hope for a favourable decision.