British Shipbuilders

Part of the debate – in the House of Commons at 6:08 pm on 14 December 1988.

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Photo of Mr James Cran Mr James Cran , Beverley 6:08, 14 December 1988

I am delighted to hear that, Madam Deputy Speaker. British shipbuilding, in contradistinction to British Shipbuilders, certainly has a future. The United Kingdom should take a certain amount of pride—I certainly do—in the fact that we are in the lead in the restructuring of shipbuilding—[Laughter.] Opposition Members may laugh, but the chairman of British Shipbuilders told the Select Committee: The Koreans have recognised they bought a 17 per cent. world market share by selling below cost and they have now turned their attention to other industries … they are not interested in subsidising shipbuilding to the extent they have in the past.

The penny has at long last dropped in Korea, just as it has dropped in this country. The resources that we pour into British Shipbuilders could be far better spent in rejuvenating the economies of the regions. I am not prepared to take any lessons from Opposition Members about the need for vibrant regional economies in the United Kingdom. I have operated in the regions all my life and there was not one that I did not wish to leave in better condition than I found it. I am sure that that would be true of every hon. Member. It is instructive to study the figures for economic growth in the regions, because almost every index shows that the northern regions are doing rather better than the southern regions. There is no reason why that should not continue in the north-east, just as it is in Yorkshire and Humberside.

I realise that Opposition Members do not want to hear literate and economic truths, so they will not welcome my next remarks. The Government are taking three steps that will help the economy of the northern region. First, the Chancellor of the Duchy announced a £43 million package last week, and I pay tribute to him for that. I have taken the trouble to speak to my contacts in the north-east because I did not think it right to speak from hearsay.

In contradistinction to what has been said by some Opposition Members, that package is very much welcomed in the north-east. It recognises the fact that the Government were not prepared to pull the rug from under the north-east and not offer some hope of future economic growth. The Government should be applauded for that. [Interruption.] I have been here throughout the debate, and Opposition Members must listen to what I have to say.

Secondly, I did not hear any Opposition Member mention the Northern Development Company, the body that encourages inward investment. It now receives greater resources than almost any other such body in the English regions. It certainly receives more Government money than my region of Yorkshire and Humberside. I make no complaint about that, because it merits that support in present circumstances. That company is respected by all the other inward investment bodies for its level of success.

The third matter that the Opposition clearly do no want to hear, but will, relates to the Tyne and Wear development corporation. I do not hear much from them on that subject. I wonder how many other hon. Members took the trouble to consult a document that it has produced called, "Forward to 1991". Clearly, not many.

That document is extremely bullish about the future of the north-east, particularly Sunderland. I have three encouraging quotations to give the House. The first states: We discovered that the area already has a sound economic base"— the corporation says that, not me or the Government— with a skilled and adaptable workforce. Those are exactly the ingredients that will produce the sort of economic success that the north-east and Sunderland in particular need.

Secondly, the document states: it became clear to us that people do have confidence in the area. It appears that inward investors have confidence in that region, but Opposition Members have shown precious little confidence and they should be thoroughly ashamed. If I were to speak about my region I would speak with pride and confidence.

I realise that Opposition Members are growing impatient, but the third quote states: The result of our appraisal is a far more positive picture than we'd expected. And while clearly there are problem areas these are on a limited scale.

There is an inevitability about the debate, but no inevitability that Sunderland need decline in any way, shape or form. If in 10 years' time the figures for any index of economic development in Sunderland are not better than in the past 10 years, I shall regard that as a failure. I do not expect it to happen.