§ Mr. CummingsTo ask the Secretary of State for Trade and Industry what measures he is taking to promote ship building and repair in the UK; and if he will make a statement. [99208]
§ Mr. Alan JohnsonTo support and promote the UK shipbuilding industry, in July 1998 the Department established the Shipbuilding Forum whose membership comprises representatives of the shipbuilding and shiprepair industry, trades unions, equipment suppliers and customers, both private and public sector. Also involved are the National Training Organisation for the marine sector and relevant Government Departments. The Forum's terms of reference were to consider the current situation of the shipbuilding and shiprepair industry and how to improve its competitiveness so as to increase its share of the European market, leading to increased output, 21W profitability and employment. The Forum produced a Report (a copy of which was placed in the Library in May 1999) and a subsequent Implementation Plan containing Recommendations—more than 40—addressed to all the participants, not just to Government. The Forum believes that these Recommendations will go a long way towards improving the fortunes of the UK shipbuilding and shiprepair industry.
The Department has already implemented most of the Recommendations addressed to it, most of which related to improvements to the Shipbuilding Intervention Fund (SIF) and the Home Shipbuilding Credit Guarantee Scheme (HSCGS). The Department has agreed to include an element of profit in SIF calculation; has extended SIF to conversion contracts; and has extended access to SIF to a number of previously excluded yards. The HSCGS has been improved by allowing contacts offering "pure cover" and by allowing US dollar and euro financing. In addition my Department has supported financially two projects being undertaken by the Shipbuilders and Shiprepairers Association aimed at improving productivity in shipyards, both new building and repair/conversion.
As well as these measures we are working in the EU and the OECD to find effective international trade disciplines to tackle unfair trade practices, such as low pricing from Korea. The Industry Council achieved a positive conclusion on this issue at its meeting on 9 November, making clear the EU' s determination to deal with Korean unfair pricing and agreeing further actions to this end, including re-engaging Korea in bilateral consultations and pursuing possible actions under the World Trade Organisation.