Shipbuilding (Hansard, 12 May 2000)

§ Mr. Sarwar
To ask the Secretary of State for Trade and Industry if he will ensure that Shipbuilding Intervention Fund money will remain available to UK shipbuilders for the remainder of this year. [121470]

§ Mr. Alan Johnson
I announced on 25 January 2000,Official Report, column 199W that I had decided to extend the availability of the Shipbuilding Intervention Fund to 31 December 2000. I am pleased to confirm that that remains the position.

§ Mr. Sarwar
To ask the Secretary of State for Trade and Industry if he will make a statement on(a) perceptions of the effectiveness of the home shipbuilding credit guarantee scheme and (b) the plans the Government have to alter the scheme. [121469]

§ Mr. Alan Johnson
I believe that the scheme has played an important role in helping UK yards win new orders since its inception in the 1960s, and continues to do so. The scheme has supported some 1,200 vessels to the value of more than £4.5 billion. It currently supports UK built ships to the tune of £200 million.
The Department runs the scheme on a comparable basis to similar schemes in our main competitor countries and we believe that its current terms facilities are competitive. To this end, and in response to recommendations from our partnership with the industry in the Shipbuilding Forum in 1999, we delivered significant improvements to the scheme by making loans available in euros and US dollars, and by making guarantees only facilities available too. This makes the scheme one of the few to offer guarantees only, and to offer finance of up to 12 years.
Following the introduction of these improvements, there is now a high level of inquiry for finance under the scheme involving potential orders for eligible ships at virtually all the UK yards.
In line with our general approach we remain ready to consider constructive suggestions for ways that the scheme might be strengthened in the future.

§ Mr. Sarwar
To ask the Secretary of State for Trade and Industry if he will make a statement on his Department's support for shipbuilding(a) on the River Clyde and (b) in the United Kingdom as a whole. [121315]

§ Mr. Alan Johnson
My Department's strategy is to support and promote all parts of the UK shipbuilding industry equally, irrespective of their location. In particular, the policy is to assist the industry to improve its competitiveness. In July 1998 my Department established the Shipbuilding Forum whose membership comprises representatives of the shipbuilding and ship repair 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 are to consider the current situation of the shipbuilding and ship repair industry and how to improve its competitiveness so as to increase its share of the European market, leading to increased output, profitability and employment.