§ Ms PerhamTo ask the Secretary of State for Trade and Industry if he will make a statement about the availability of Shipbuilding Intervention Fund grants for 2000. [107148]
§ Mr. Alan JohnsonI have decided to extend the Shipbuilding Intervention Fund for currently eligible shipbuilding yards until 31 December 2000. Last year's rates were the highest possible within the EU' s Shipbuilding Regulation for new-build orders—and the Government will be keeping those rates for this year in a bid to help UK shipbuilders win more contracts and compete overseas.
The rates of support will be unchanged from those in 1999, namely 9 per cent. for large ships and 4 per cent. for small ships. Both rates are inclusive of Shipbuilders' Relief of 2 per cent. I will also be extending the Shipbuilding Intervention Fund for conversion contracts at 2.25 per cent.