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C U M E N T IS THE P R O P E R T Y O F HER BRITANNIC MAJESTY'S G O V E R N M E N T
CP(77) 22
C O P Y NO
22 F e b r u a r y 1977
CABINET
A I R C R A F T A N D SHIPBUILDING INDUSTRIES B I L L
M e m o r a n d u m by the L o r d P r e s i d e n t of the Council
I.
F o l l o w i n g the d i s c u s s i o n i n Cabinet on 17 F e b r u a r y
(CM(77) 6th C o n c l u s i o n s , Minute 1, C o n c l u s i o n 2) a g r o u p of M i n i s t e r s h a s
m e t u n d e r m y c h a i r m a n s h i p to c o n s i d e r t h e i m p l i c a t i o n s of the r u l i n g by
the H o u s e of L o r d s E x a m i n e r s that the A i r c r a f t and Shipbuilding I n d u s t r i e s
B i l l i s h y b r i d i n r e s p e c t of the chip r e p a i r i n g c o m p a n i e s s c h e d u l e d for
n a t i o n a l i s a t i o n (a c o p y of t h e r u l i n g i s at A n n e x A ) .
2.
T h e Standing O r d e r s C o m m i t t e e of the H o u s e of L o r d s m e e t s on
23 F e b r u a r y to d e c i d e w h e t h e r to d i s p e n s e with the Standing O r d e r s on p r i o r
a d v e r t i s e m e n t of i n t r o d u c t i o n of a p r i v a t e B i l l etc w h i c h would n o r m a l l y
apply to a h y b r i d B i l l .
If the C o m m i t t e e should d e c i d e that t h e s e Standing
O r d e r s should not be d i s p e n s e d with the H o u s e of L o r d s would be u n a b l e to
P r o c e e d to a S e c o n d R e a d i n g of the B i l l and i t c o u l d i m m e d i a t e l y b e
s u b m i t t e d for R o y a l A s s e n t u n d e r t h e P a r l i a m e n t A c t s .
If, a s i s m o r e
l i k e l y , the C o m m i t t e e d e c i d e that t h i s Standing O r d e r about p r i o r n o t i c e
should be d i s p e n s e d with t h e B i l l w i l l go to S e c o n d R e a d i n g and if p a s s e d
would i n the n o r m a l way go to a S e l e c t C o m m i t t e e w h e r e o b j e c t o r s to i t s
p a s s a g e could p r e s e n t their c a s e .
T h e r e i s l i t t l e p r o s p e c t of g e t t i n g t h e
L o r d s to p a s s a Motion d i s p e n s i n g with t h e S e l e c t C o m m i t t e e p r o c e d u r e
without s o m e G o v e r n m e n t c o n c e s s i o n s and an a t t e m p t to do so c o u l d r e s u l t
in a h u m i l i a t i n g d e f e a t .
T h e e f f e c t i v e c h o i c e for the G o v e r n m e n t i s
between:­
a.
A l l o w i n g the B i l l to p r o c e e d t h r o u g h the S e l e c t C o m m i t t e e
p r o c e d u r e and p a s s i n g i t u n d e r the P a r l i a m e n t A c t s when i t
e m e r g e s , which p r o b a b l y m e a n s a t t h e end of the S e s s i o n .
b.
S e e k i n g a d e a l u n d e r w h i c h the G o v e r n m e n t would a g r e e to
d r o p f r o m the B i l l t h e ship r e p a i r i n g c o m p a n i e s (but not t h e ship
r e p a i r i n g i n t e r e s t s of t h e shipbuilding c o m p a n i e s ) i n r e t u r n for a
c l e a r c o m m i t m e n t f r o m the O p p o s i t i o n i n both H o u s e s that t h e y would
a l l o w t h e r e m a i n d e r of the B i l l to p r o c e e d i m m e d i a t e l y to R o y a l
A s s e n t without further d e l a y o r a m e n d m e n t .
1
C o u r s e b. would, if a l l g o e s s m o o t h l y and the L o r d s s p e e d up t h e i r u s u a l
p r o c e d u r e s , p r o b a b l y r e s u l t i n R o y a l A s s e n t by E a s t e r o r s o o n a f t e r ,
s a v i n g about s i x m o n t h s c o m p a r e d with c o u r s e a.
3.
The m a i n
factors affecting this choice a r e : ­
a.
I n d u s t r i a l c o n s e q u e n c e s of d e l a y .
The S e c r e t a r y of State
for I n d u s t r y ' s a s s e s s m e n t i s at A n n e x B .
T h e m a i n r i s k s of d e l a y
a r i s e i n the a i r c r a f t i n d u s t r y w h e r e t h e a b s e n c e of a s i n g l e body
a b l e to speak with a u t h o r i t y on behalf of both t h e B r i t i s h A i r c r a f t
C o r p o r a t i o n and Hawker S i d d e l e y c o u l d p r e j u d i c e the c o n c l u s i o n of
c o l l a b o r a t i v e a r r a n g e m e n t s with o v e r s e a s c o m p a n i e s p a r t i c u l a r l y
Boeing.
H o w e v e r , t h e r e i s no c e r t a i n t y that n e g o t i a t i o n s on the
c o l l a b o r a t i v e p r o j e c t s w i l l c o m e to a h e a d i n t h e n e x t s i x m o n t h s .
D e l a y would c a u s e s o m e l o n g - t e r m d a m a g e to the shipbuilding
i n d u s t r y but t h e p o l i c y d e c i s i o n s w h i c h C a b i n e t took on 17 F e b r u a r y
(CM(77) 6th C o n c l u s i o n s , Minute 3 ) and the e s t a b l i s h m e n t of the n e w
holding c o m p a n y for t h e G o v e r n m e n t s h a r e h o l d i n g s i n t h e i n d u s t r y
should a v o i d s e r i o u s and i m m e d i a t e d a m a g e .
D e l a y could
p r e c i p i t a t e t h e c l o s u r e of s o m e ship r e p a i r e r s ; but so c o u l d t h e i r
exclusion from the B i l l .
b.
I m p l i c a t i o n s of the Hybridity R u l i n g .
The E x a m i n e r s have
gone w e l l beyond t h e i r t a s k of s a y i n g w h e t h e r the Standing O r d e r s
a p p l i c a b l e to p r i v a t e B i l l s should apply t o t h e A i r c r a f t and
Shipbuilding I n d u s t r i e s B i l l .
C e r t a i n a s p e c t s of t h e i r r u l i n g ­
n o t a b l y t h e i r v i e w that to define w h i c h c o m p a n i e s a r e to be n a t i o n a l i s e d
by r e f e r e n c e to t h e i r t o t a l t u r n o v e r , i n c l u d i n g t u r n o v e r o u t s i d e ship
r e p a i r i n g , i n i t s e l f c a u s e s h y b r i d i t y - could h a v e s e r i o u s
i m p l i c a t i o n s for future l e g i s l a t i o n ( p a r t i c u l a r l y n a t i o n a l i s a t i o n B i l l s ) .
T h e E x a m i n e r s ' r u l i n g i s on the r e c o r d ; but i f w e d e c i d e to s e e k a
d e a l i t s h o u l d be p o s s i b l e to p r e s e n t our d e c i s i o n a s r e c o g n i s i n g that
the E x a m i n e r s ' r u l i n g i s d e c i s i v e in t h i s c a s e without n e c e s s a r i l y
a c c e p t i n g t h e a r g u m e n t s on w h i c h that r u l i n g i s b a s e d .
c.
Parliament Act.
Annex C d e s c r i b e s the position under the
Parliament Acts.
T h e m a i n q u e s t i o n i s w h e t h e r , if w e d e c i d e to
p r o c e e d u n d e r t h o s e A c t s , w e could, s h o u l d w e h a v e l o s t our
C o m m o n s m a j o r i t y b e f o r e t h e end of the S e s s i o n , s u b m i t the B i l l for
R o y a l A s s e n t without f u r t h e r v o t e s i n the C o m m o n s .
T h e r e i s no
r e q u i r e m e n t u n d e r the P a r l i a m e n t A c t s for the C o m m o n s to c o n s i d e r
a n y a m e n d m e n t s which the H o u s e of L o r d s n o w m a k e to t h e B i l l and
i t c o u l d be s u b m i t t e d for R o y a l A s s e n t a t the end of the S e s s i o n
without s u c h c o n s i d e r a t i o n .
It i s p o s s i b l e for the C o m m o n s t o d i r e c t
that the P a r l i a m e n t A c t s should not b e i n v o k e d but t h e r e i s no
o b l i g a t i o n on the G o v e r n m e n t to p r o v i d e t i m e for s u c h a Motion and
t h e o f f i c i a l s of t h e H o u s e of C o m m o n s h a v e a d v i s e d i n f o r m a l l y that
s u c h a Motion would not be i n o r d e r on a Supply d a y .
However the
2
p o s s i b i l i t y of further v o t e s i n t h e C o m m o n s cannot be e n t i r e l y
e x c l u d e d ; and i t c o u l d be p o l i t i c a l l y e m b a r r a s s i n g to s u b m i t the
B i l l for R o y a l A s s e n t without t h e C o m m o n s having v o t e d on any
(It would a l w a y s b e o p e n to the O p p o s i t i o n
Lords amendments.
to t a b l e a Motion of c e n s u r e ; but d e f e a t of the G o v e r n m e n t on that
would h a v e i m p l i c a t i o n s going beyond the A i r c r a f t and Shipbuilding
Industries Bill).
1
d.
Political factors.
Many m e m b e r s of the P a r l i a m e n t a r y
Labour P a r t y and of t h e Labour P a r t y i n the c o u n t r y a r e l i k e l y t o
r e a c t s t r o n g l y a g a i n s t a d e c i s i o n to drop the ship r e p a i r i n g
c o m p a n i e s f r o m the B i l l .
T h e y would s e e i t a s a s u r r e n d e r to the
H o u s e of L o r d s and to B a i l e y ' s c a m p a i g n .
T h e C o n f e d e r a t i o n of
Shipbuilding and E n g i n e e r i n g U n i o n s h a v e t o l d the P r i m e M i n i s t e r
that t h e y would r e l u c t a n t l y a c q u i e s c e in the dropping of the ship
r e p a i r i n g c o m p a n i e s if the G o v e r n m e n t d e c i d e d that w a s n e c e s s a r y
to s e c u r e a s p e e d y p a s s a g e for the r e s t of the B i l l .
To continue
u n d e r the P a r l i a m e n t A c t and then l o s e t h e B i l l at t h e end of the
S e s s i o n would of c o u r s e be a s t i l l m o r e d a m a g i n g p o l i t i c a l d e f e a t .
CONCLUSIONS
4.
T h e m a j o r i t y of the Group v e r y r e l u c t a n t l y took the v i e w that t h e
i n d u s t r i a l c o n s e q u e n c e s of d e l a y and t h e p o l i t i c a l r i s k s of p r o c e e d i n g u n d e r
the P a r l i a m e n t A c t s m a d e i t n e c e s s a r y to t r y and do a d e a l with t h e
O p p o s i t i o n on the l i n e s s u g g e s t e d i n p a r a g r a p h 2b. T h e r e w a s no c e r t a i n t y
that t h e O p p o s i t i o n would be r e a d y for such a d e a l - t h e d e c i s i o n would be
taken by the Shadow C a b i n e t a s a w h o l e .
An i m p o r t a n t m i n o r i t y of the
Group, h o w e v e r , had r e s e r v a t i o n s about t h i s c o u r s e .
5.
Cabinet a r e a s k e d to d e c i d e whether to a u t h o r i s e an e x p l o r a t i o n
of the p o s s i b i l i t i e s of a d e a l with the O p p o s i t i o n u n d e r which the ship
r e p a i r i n g c o m p a n i e s would be d e l e t e d f r o m the A i r c r a f t and Shipbuilding
I n d u s t r i e s B i l l in r e t u r n for c l e a r c o m m i t m e n t s f r o m the O p p o s i t i o n in both
H o u s e s to a l l o w t h e r e m a i n d e r of the B i l l to p a s s q u i c k l y .
If Cabinet d e c i d e
in favour of s u c h e x p l o r a t i o n s the t a c t i c s of t h e a p p r o a c h to the O p p o s i t i o n
w i l l n e e d to be c a r e f u l l y c o n s i d e r e d by the m a n a g e r s of G o v e r n m e n t
b u s i n e s s in both H o u s e s i n c o n s u l t a t i o n with the S e c r e t a r y of State for
Industry.
M F
P r i v y Council Office
22 F e b r u a r y 1977
3
AIRCRAFT
We
by
Mr.
Act
h a v e
S p e a k e r
b a s e d
t h a t
P u b l i c
p r i v a t e
t h e
This
d e f i n i t i o n ,
have
b e e n
an
s h o u l d
S i l l
the
w i l l
some
means
h y b r i d
on
the
B i l l
3ILL
w e l l - k n o w n
f o r
by
a
B i l l
a f f e c t
d e f e n c e
d e f e n c e
w i l l
t h e
s t a t e m e n t
London
Government
e a c h
P u b l i c
h i s
him.
a g a i n s t
a g a i n s t
d o c t r i n e
of
f o r
a
the
Crown.
d e f e n c e
has
been
o f
a d v e r s e
was
m i g h t
h y b r i d i t y
C o m m i t t e e
d e s i g n e d
and
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t h a t
i t
an
t r e a t m e n t
p r o v i s i o n s
l e g i s l a t u r e ;
a g a i n s t
w h a t
P a r l i a m e n t
S e l e c t
t h o s e
d o c t r i n e
the
i n d i c a t e s
t h e
t o
o r
c l a s s . "
House
c a u s e
The
o r
B i l l
as
from
p e r s o n s
v a l u e ,
t h a t
d e f i n e d
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d i f f e r e n t
o t h e r
f a c e
be
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manner
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of
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t h e
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to
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a
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t h a t ,
i t
n o t h i n g .
s
Y e t
f l i n g s ,
t h e
Mr. *S p e a k e r
K l i n e s ,
i
t h i s
f i r s t
P p l y i n g
£very
b o d i e s
t h e
o r
I s
-bc-dies.
h y b r i d
s
yc-Ur
" e
c
r i g h t
o r
body
b o d i e s
a
member
o n
t h e
o r
Mr.
i s
and
T h e r e f o r e ,
of
t o
and
t h e
R u l i n g .
c a l l
H y l t o n - F o s t e r
c a t e g o r y
t h a t
b e f o r e ,
e r o d e d
by
two
s e c o n d
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g i v e n
a f t e r ,
d i s c u s s i n g
t h e s e
c
p e r s o n
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g i v e n
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i s
a
on
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t a k e n
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l
INDUSTRIES
i n q u i r y
w h i c h
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o f
t h o u g h t
a
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SHIPBUILDING
1 9 6 3 :
"I
I s
AND
o f
a
d e f i n i t i o n
member
e v e r y
a
the
a t t e n t i o n
w i d e r
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t o
the
any
or
o r
on
o r
of
c l a s s
t h e
B i l l ,
c l a s s
o f
p e r s o n s
o f
p e r s o n s
w h e t h e r
d e p e n d s
we
o f
p a r t i c u l a r
q u e s t i o n
R u l i n g s
C l i f t o n - B r o w n
d i f f i c u l t y
c l a s s
d e f i n i t i o n
two
t h e
c a t e g o r y
c a t e g o r y
a n s w e r
The
t o
a
c a t e g o r y
H y l t o n - F o s t e r
c l a s s .
of
t o
h a v e
B i l l
on
a
w h e r e
r e f e r r e d
f o r
t h e
or
or
B i l l
y o u - e r a
t o
I r o n
and
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A c t
t h e
I r o n
t h e
c a t e g o r y
t h e
P r o m o t e r s
and
1949
and
t h a t
S t e e l
Act
1 9 6 7 .
o r
o f
s u b j e c t
a g a i n s t
d r a w i n g
a
v i c t i m s
and
t h e
f r o m
i n h e r e n t l y
o f
t h o s e
- s e c u r i t i e s
s u c h
O f f i c e r s
of
h y b r i d ,
t o
s a y
t h e
d i f f e r e n t
c o m p a n i e s
and
a r e
named
t h e
i n
n o t
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i s
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t h e
t o
t h a t
of
and
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a n s w e r
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I
t h e
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us
t o
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the
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s e t
o u t
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o f
c a t e g o r y
or
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w i t h i n
I
t h a t
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i n
Part
I I
h y b r i d .
of
t h e
T h i s
i s
w h e t h e r
o f
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o u t - f r o m
(b)
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i t s
i f
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a
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c o m p a n i e s
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c a t e g o r y
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own
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c l a s s
named
or
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members
I
t o
t h e
t h a t
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the
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are
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i s
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n o t
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b e c a u s e
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I
but
i s
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I I ,
i t
c l a s s ;
named
w i t h i n
o u t s i d e
i s
s i n g l e ^
c l a s s
d e f i n e "
and
c a t e g o r y
n o t
a r e
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i n
t h e
n e v e r t h e l e s s
named
i n
d e f i n e d
c a t e g o r y
company
i s
c
d e s c r i b e d
t ­
( a )
h
w h o s e
n o t
b u t
two
i n
s e l e c t i o n
p r o h i b i t e d ,
Commons,
S p e a k e r
c a n n o t
a
p r o h i b i t e d
I n d u s t r i e s
c o m p a n i e s
i t s e l f
a r e
o f
as
I f
t h a t
p u b l i c
a r e
House
of
s a y
i t
o p e n
c o n g r u e n t ,
t u r n e d
S h i p b u i l d i n g
c l a s s
i n t o
s t i l l
I .
be
C l i f t o n - B r o w n
i n c o n v e n i e n t
i n
any
i s
d e f e n c e s
e f f e c t i v e l y
t h a t
t h e
c a t e g o r y
w h e t h e r
named
o f
i s
can
for
s e l e c t e d
o u r s e l v e s
t a k e n
House
a c c o r d i n g
w i t h i n
be
d o c t r i n e s
I t
h y b r i d
f i n d
l e a s t ,
t h e
them
c o n c e i v e
c o m p a n i e s .
S p e a k e r s
w o r d s ,
one
B i l l
e l s e .
A i r c r a f t
t h e
t h e
o f
him
t h e
o f
b o t h
t h e
c o m p r i s e s
t h a t
t h e
i s
on
t h a t
S p e a k e r
o f
o t h e r
King
o f
i l l - t r e a t m e n t
c l a s s
p a r t i c u l a r i t y
c l a s s
I n
Mr.
t o
e f f e c t
r e l e v a n t
o f
a r e
S p e a k e r
The
B i l l .
t h e r e f o r e
R u l i n g s
Mr.
i s
s e l e c t i v e
R u l i n g s
is
w i d e r
t h e
n o b o d y
f i n d i n g
w i t h
t h a t
c a t e g o r y - o r
We
by
c l a s s
o f
i n
a
s u b j e c t e d
CONFIDENTIAL
o r
P a r t
I ,
c a t e g o r y
t o
t h e
o r
c l a s s
n a t i o n a l ! z a t i
0
1
1
,
We
d e a l
l a t e r
o r
c l a s s
to
t h e
w i t h
o t h e r
l i s t
t h e
a i r c r a f t
T h i s
i s
f a r
to
" c e r t a i n
as
t h e
t h e
t h e
t w e l v e
s h i p r e p a i r i n g
a r e
on
B i l l
c o m p a n i e s ,
l i s t
f u l f i l
If5
t h e r e f o r e ,
we
b u t
t h e
w i t h o u t
s h o u l d
be
Or
as
It
was
o n l y
t h a t
t h e
t h a t
c l a s s
t h e
by
1
i s
c a n
the
of
a p p r o p r i a t e
K i n g ' s
h y b r i d ,
i n
I I
a s
of
hope
t o
by
s t u d y
"group
a
of
o f
t o
Second
t o
t h e
B i l l ,
t r e a t
t h e
i n
l o n g
t i t l e
i n d u s t r y .
S c h e d u l e
to
i n
t h e
How
B i l l
t i g h t
p a r a g r a p h s
and
s
we
d e s c r i b e d
h y b r i d i t y .
c o m p a n i e s "
t h e
e n g a g e d
i n
t h o s e
c o m p a n i e s .
a c c o u n t ,
w e r e
t h a t
c o m p a n i e s
c o m p a n i e s
by
s h i p r e p a i r i n g
o f
a s
H y l t o n - F o s t e r '
" c o m p a n i e s
a v o i d
n i n e t y
p u b l i c
s u c h
i n t o
we
as
f a r
t h e
i n t o
p r o p o s e d
R u l i n g
t i g h t
t h e
t h e
S c h e d u l e
S p e a k e r
m e n t i o n e d
t h e
i s
s h i p b u i l d i n g
w h e t h e r
the.
so
s h i p r e p a i r i n g
n a t i o n a l i z a t i o n
c l a s s
s e e n
Mr.
r e f e r s
and,
t h a t
b r i n g
a p p r o p r i a t e
a p p l y
i n d u s t r y .
B i l l
Out
Second
o f
n a t i o n a l i z e
e x c l u s i v e l y
w o u l d
more
S c h e d u l e
e n g a g e d
P a r t
of
s i x
t o
t h e
and
a l m o s t
t h e
i n d u s t r i e s "
a
o f
s e l e c t i v e .
i n
c o m p r i s i n g
i s
i n d u s t r i e s ,
B i l l
about
t o
i t
c o u l d
be
o f
b e f o r e
h y b r i d
. i ( b )
c a t e g o r y
and
" s u b s i d i a r y "
i n
5 6 ( 1 ) .
a p p e a r e d
many
3
Government
One
i s
as
d e v i s i n g
d e f i n i t i o n s
C l a u s e
f i n d
t h o s e
and
i s
a
s h i p b u i l d i n g
t i t l e
b e e n
t h e
S p e a k e r
a l l i e d
c o m p r i s i n g
P a r a g r a p h s
of
t o
and
t h a t
B i l l
c o n c e r n e d ,
c r i t e r i a
f r e e
Mr.
c l a s s "
s h i p b u i l d i n g
I I
t h e
t h o s e
has
t h a t
t h e
were
t a k i n g
or
i s
named
and
i n
and
n o t a b l y
s h i p r e p a i r i n g
f o r c e d
" c a t e g o r y
i s
t h e
l o n g
i n
c o m p a n i e s ,
p r e s u m a b l y
t o
e n g a g e d
i n d u s t r y
and
r u l i n g
P a r t
t h a t
The
c o m p a n i e s
t h e
i n
industr-y
e x a m i n a t i o n
s h i p r e p a i r i n g
w h i c h
s u p p o s e d
t r u t h .
c o m p a n i e s "
our
s u g g e s t i o n
I.
w i d e l y
from
w i t h ,
o w n e r s h i p
d e s c r i b e d
m a n u f a c t u r i n g
t h a t
c o n c e r n e d
s o
P a r t
i s
G o v e r n m e n t ' s
t h a t
s h i p r e p a i r i n g
i n d u s t r y
o r
t h a n
i n
I t
t h e
(whom
the
main
us
i n
we
s h a l l
s u p p o r t
s h i p o w n i n g
c o m p a n i e s
o f
of
P a r t
c r i t e r i a "
c o m p a n i e s ,
i n
I I
i n
t h e
of
r e f e r
3
of
the
t o
f i t t e d
S c h e d u l e
p a r a g r a p h
t h a t
a r g u m e n t s
a d v a n c e d
p r o p o s i t i o n
a s " t h e
t h e
as
d e s c r i p t i o n
P a r t
the^OEMBDSNJJAiinong
t h o s e
t h a t
who
t h e
M e m o r i a l i s t s " )
c o m p a n i e s
t h a t
by
t h a t
as
o t h e r
i n
B i l l
was
t h a t
p a r a g r a p h
" f u l f i l l e d '
s h i p r e p a i r i n g
c r i t e r i a ,
that
of being engaged on the 31st July, 1974, in the business of
repairing, refitting or maintaining ships in spite of the fact
that the ships were their own
resisted this contention-
The Government has all along
In his answer of 14th October 1976,
to a question asked by Lord Colville of Culross, Lord Peart
said:
"The Government are satisfied that a person who
does repair or other work only for himself, such
as a shipowner carrying out his own repairs or
maintaining his own ships, is not 'engaged in
the business of repairing, refitting or maintaining
ships . A good analogy would be a hotel company
which launders its own linen; no-one would say
this would make the company into a company
engaged in the. laundry business."
1
It was pointed out to us that the hotel analogy would have been
better had it said "would make the company into a company
engaged in the business of laundering linen."
We are thus invited to find that the Bill is hybrid
because, although the shipowning companies are for the most p a
r t
not within the list of shiprepairing companies contained in
Part I of the Second Schedule they fulfil the conditions in
Part II of that Schedule.
This issue, above all, shows the
unreality and artificiality of what we have been enquiring i n t
0.
We are aware that Mr. Speaker King, in ruling that the Bill
o r
f
the Iron and Steel Act 1967 was not hybrid, declined to specula
on the reason why the class devised for that Bill was selecteo,
but in the case before us there was no occasion to speculate
because both Mr. Gamon, the Government Agent, and Mr. McDonaldj
whom he called as a witness from the Department of Indus try,
It abundantly clear that from the beginning the Government wa
aiming, not at the shiprepairing industry, but at a. careful
selected list of companies engaged in that industry.
The £
of Hybridity was, therefore, immediately apparent, and we a
entitled to assume that Parliamentary Counsel endeavoured to
draft Part II of the Second Schedule so as to enable the
Government to avoid hybridity by availing itself of Mr. S p
rr\
KicincMTi a i
Ccl
*
K i n g ' s
i n t o
R u l i n g ,
w h i c h
e x c e p t
The
t h a t
t h e
t h o s e
was
t h e
p a s t ;
b e c a u s e
t h e
r i g h t
o f
b e f o r e
t h e
r i g h t s
C o u n s e l
i n
e x a c t l y
t h e
t h a t
P a r t
B i l l ,
a
q u a l i f i c a t i o n ,
p u r p o s e s
a r e
n o t
named
q u e s t i o n
we
a r t i f i c i a l
t h e i r
P a r t
own
I I
o f
s t r o n g l y
framed
t h o s e
who
t h e
S c h e d u l e
by
r e f e r e n c e
l ^ b )
o f
f i n d
t h a t
I
f u l f i l
m o s t
t o
P a r t
t o
o f
many
the
as
B i l l
by
the
t i t l e
t h e
o r
l i s t
t o
o f
w h i c h
b u s i n e s s "
o f
To
of
r e p a i r e d
s h i p s
t h a t
t h e y
n o t
r e g a r d
t o
Sugar
L i n e
w e r e
t h e
L t d . ,
c a s e
i s
own
an
t h e
Clyde
wSONWSXG^TSM
f o r
t h o s e
t h a t
i s
a n s w e r
n o t
i s
r e p a i r
3 ( l ) ( a )
o f
Mr.
o f
t h o s e
w i l l
i n
d i d
Gamon
who
i n t e n t i o n
l a n g u a g e
c o m p a n i e s
t h e
t h e
s h i p o w n i n g
B i l l
t h e
c o m p a n i e s
w h i c h
The
t h e
t h e
of
c o m p a n i e s
a c h i e v e
o f
n o t
p a r a g r a p h
P a r t
I.
r e p a i r
We
t h e i r
\
own
-
t h i s
t h a t
s h i p s
t h e
w e r e
e v e n l y
s o " e n g a g e d
of
w h e t h e r
i n t e n t i o n
c o m p a n i e s
from
t h e i r
r e p a i r i n g
f i n d
"having
f o l l o w s
t u r n o v e r
c o m p a n i e s .
e x c l u d e
o r i g i n a l
c o m p a n i e s .
p a r a g r a p h
c o u r s e ,
e v i d e n c e
t h e
t h e
c o m p a n i e s
nowhere".
..
c o m p a n i e s
t o
us
o f
on
But
h a v e
i n
had
o f
b e c a u s e
l e a d s
t o
we
c o v e r
II
c o m p a n i e s
t h e
was
I
s t a g e
t o
s h i p o w n i n g
i t
and
r e g a r d
s h i p s .
W h e t h e r
P a r t s
q u e s t i o n
s h i p r e p a i r i n g
t h i s ,
l o n g
b u t
c r i t e r i a
i t s
P a r l i a m e n t a r y
S c h e d u l e .
s h i p o w n i n g
p l e a d
o f
and
"No"
we
t o
r e m a r k a b l e ,
s u c c e s s
i n d i v i d u a l
i s
i f
Government
c o n s i d e r a t i o n
i n d e e d
t h e
o t h e r s
any
B i l l
t o
What
t h i s
and
o f
and
c l a s s
n o
o t h e r
on
s h i p r e p a i r i n g
t h e
Have
t h e
I I ,
t h a t
o r
c o m p a n i e s .
t a c t i c s
n o t
t h e
d r a f t
a n s w e r
t h e
b u t
them;
on
t u r n
a l s o
t h e
s h i p s
o r
the
we
w h e t h e r
B i l l ;
d e p e n d s ,
b u t
a s
c o m p a n i e s
e x c l u d e
o r
q u e s t i o n
u s
t w e l v e
S c h e d u l e
a n s w e r .
framed
of
the
t o
u r g e d
t h e
s u c h
admit
P a r t
h a v e
of
e f f e c t
t h i s ,
q u a l i f i c a t i o n
B i l l ,
i n
do
d r y - d o c k
a r e
b u t
t o
i n
c o m p a n i e s
f i t t e d ,
e n t i t l e d
c o m p a n i e s ;
when
t h e
be
c a t e g o r y
s h i p b u i l d i n g
t h e
M o r e o v e r ,
o f
c o u l d
a
of
of
a l t e r e d
t o
d e v i s i n g
l i s t
s u b j e c t ,
t w e l v e
t h e
by
Committee
d r a f t i n g
on
s h i p o w n i n g
any
the
was
t h e
the
S e l e c t
same
II
b o t h
but
of
s o
i n
f u l l y
of
s a y ,
c o m p a n i e s
i n c l u d e d
i n
c a u s e
t o
t w e l v e
Government
h a v e
i s
end
" e n g a g e d
b a l a n c e d
i n v o l v e s
Wharf
s h i p o w n i n g
of
March
t h e
q u e s t i o n .
some
L i m i t e d ,
i n
a
1 9 7 3
a b s u r d i t y
s u b s i d i a r y
w a s
r e p a i r i n g
C l y d e
s h i p s
Wharf
s e c t i o n
b e l o n g i n g
c e a s e d
t o
Sugar
t o
u s e d
Wharf
c e r t a i n l y
Can
w a s
I n
t r a n s f e r
Sugar
i t s
b u s i n e s s
m a i n
f i n d
t h a t ,
c o n n o t e s
in
t h e
M a i l
L i n e r s
t h e
r u l e
or
s m a l l
The
f i v e
t o
s u g g e s t e d
in
t h e
c a s e
/yll
b e
to
f i v e
t h e i r
own
a
A t h e l ,
i n c l u d e d
s h i p o w n e r
m a n a g e m e n t ,
demands
w i t h
i t s
t u r n o v e r
t h e
t o
t h e y
manager
in
t h e
b u s i n e s s
o f
Is
t h e
m a n a g i n g
company
b u s i n e s s
in
t h e
of
m a i n t a i n i n g ?
as
of
W i t h
them
r
s
and
s h i p s
m a n a g i n g
some
can
and
i t
the
d i f f i c u l t y ,
n o t
and
and,
be
s e a
i s
because?
i n
t h e
Do
Dry
"ships
t h u s
a
as
an
as
e l e m e n t
i s
"engaS
i n
s h i p
be
b u s i n e s s
o f
r e p a i r i n g
t o
5
t h e
t o
come
ot.
o c c a s i o n
e n g a g e d
CONFIDENTIAL
w i t h
t h a t . c o n t r a c t s
m a i n t a i n i n g
have
c 1 l , c S
s t r o n g
s a i d
we
to
c o m p a n i e s ,
e q u i p m e n t
or
a
s u b m i t t e d
managed
them
1
b e c a u s e
M a n c h e s t e r
i s
As
a t
b u t
was
and,
r e p a i r
maintai
s h i p r e p a i r e r s .
L t d . ,
n e v e r t h e l e s s
o r
t o
s h i p .
B i l l ,
company
r e f i t t i n g
t h e n
by
i t
There
w o r k f o r c e
t h e
S
n
a
e m p l o y e e s
t h e i r
s h i p s ,
m a n a g i
t h a t
s h i p r e p a i r i n g
r e p a i r e d
r e p a i r i n g ,
m a n a g i n g
b u s i n e s s
B i l l
h i s
s
T
L t d . ,
w e r e
m a n a g e r
t h e
r e q u i r e d
a
L i n e
t o l d
out:
have
e v i d e n t
M a n c h e s t e r
w e r e
( S h i p b u i l d e r s )
t h a t
more
w h i c h
w o u l d ,
e q u i p m e n t .
p r o f i t .
r e l e v a n t ,
i n
a f t e r
b u s i n e s s
A t h e l
r e p a i r
a r e
be
i n
i s
t h e
c a r r i e d
t u r n o v e r
p r o p o s i t i o n
m a n a g e r
Ltd.
s h i p s .
n e v e r t h e l e s s ,
t r a d i n g
m a n a g e r
above
s o m e t i m e s
m a i n t a i n
the
are
the
and
the
We,
L t d . ,
t o
C l y d e
b u s i n e s s ' b e c a u s e
as
We
him
by
w o u l d
i n
t o
s u c h
s h o u l d
R i c h a r d s
w o r k f o r c e
f o r
done
a
and
r e p a i r i n g
e n g a g e d
r e q u i r e s
r e q u i r e s
of
p r o f i t
c o m p a n i e s .
m e n t i o n e d
c o m p a n i e s
a r g u m e n t
w i t h
o f
be
& A l b i o n
r e p a i r s
t h a t
t o
make,
p l a n t
i m m e d i a t e l y
s h i p s ?
1973,
s h i p r e p a i r i n g
t r a n s f e r
t h a t
B r o t h e r s
i n v a r i a b l y
a r e
r e q u i r e d
t h e i r
L t d . j
S a v i l l
l a r g e r
w a s
c a s e s ,
H o u l d e r
g e n e r a l l y
i n
t r a d i n g
of
i t s
t h e
of
t o
March
w o r k f o r c e ,
t h a t
companies
o t h e r
c o m p a n i e s
h a v e
of
Shaw
- it
us,
e l e m e n t
r e p a i r s
p o r t ;
in
a t t e m p t i n g
c o n t r a c t
and
owning
3 1 s t
b u s i n e s s
engaged
p a r l a n c e ,
L t d . ,
b e l o n g i n g
s h i p
the
c a s e
L i n e s
management
h e l d
t h e
L t d . , a n d
s h i p s
be
or
a n a l o g o u s
R o y a l
r e a s o n a b l y
n o t
the
B e f o r e
the
o r d i n a r y
But
w i t h
i n
was
On
t r a n s f e r r e d
s e c t i o n .
was
making,
L i n e .
e n g a g e d
L i n e
in
and
t o g e t h e r
t h a t
t h e r e f o r e
it
Sugar
t r a d e
Line,
m a c h i n e r y
t o
t
e n g a g e d
t h e
o
t
1
c o n c l u s i o n
t h a t
manager
t h e b u s i n e s s
I n
w a s
I t
Company,
was
t h o u g h
e n g a g e d
n o t
of
I I
o n l y
o t h e r
g e n e r a l
i n
t h e
i t s
S c h e d u l e
own s h i p s
c o m p a n i e s .
m a n a g e r
t h e s e
t e r m s
H a r b o u r
You
h a v e
F o r
many
t o
r e g u l a r l y
i n
n o t
w e
be
o f
some
owned
s h i p s
w e
i n
i t
o f
o r
3 ( l ) ( a )
o f
7 : e p a i r i n g
b u t
company
a l s o
w r o t e
P r e s t o n
M e r s e y
m a i n t a i n
a t
s h i p s
t o
t h e
A u t h o r i t y
Docks
a n d
D r y d o c k s .
o u r o w n
Bromborough
v i r t u a l l y
v e s s e l s
a n d
on
o f
t o
h a v e
make
b e e n
o u t
u t i l i s a t i o n ,
N o . 3
d o c k ,
h i r i n g
t h e i r
maximum
f o r
t h i s
a l l o w
y o u r
u s e
u s
t o
d o c k
r e p a i r s ,
o f
r e a s o n
v e s s e l s
t h e
own
o u r
we
q u o t e
a r e
f o r
w h i c h
d r y d o c k
L i v e r p o o l .
t h i n k
a l s o
u s i n g
c a p a c i t y .
c a r r y
i s
m o n o p o l i s e d
a n d t h i s
v e s s e l s
y o u w o u l d
h a v e
t h a t ,
a p a r t
a n d p a r t s
a c c u m u l a t e d
a n d hope
k n o w l e d g e ,
from
o u r
( p e c u l i a r
a
g r e a t
t o
d e a l
t h e r e f o r e
.we m a y
a s s i s t a n c e . "
from
J u n e
o r
c h a r t e r e d
s h i p s
t o
I t
l i k e
t h e
b e t w e e n
o f
l i k e
P o r t
a t
b e l o n g i n g
d i s p u t e
number
w a s
o
o f- m a t e r i a l s
s p e c i a l i s e d
t h e
s p a r e
w h o a l s o
t h e
w o u l d
have
707
a n d r e p a i r s
o f
" c e r t a i n l y
P o r t
from
May 1 9 7 2 we
a l s o
s t o c k s
Company
1 9 7 2 , t h e
b o t h
p a r t y
a b o u t
a s k i f
d r e d g e r s ) ,
The
p a r a g r a p h
b y
D r e d g i n g
S c h e d u l e ,
r e f i t t i n g
c h a r t e r e d
t h a t
w e
f a c i l i t i e s .
d r y d o c k i n g
We
S e c o n d
w a s e n g a g e d
own own v e s s e l s
t h i r d
1 s t
w o u l d
w o r k s h o p
l a r g e
o f
t h e
s h i p s .
t h e W e s t m i n s t e r
t h e
t h e
d r y d o c k s .
y e a r s
w i t h
S i n c e
w r i t i n g
o f
i n v o l v e
N o . l a n d N o . 3 B i r k e n h e a d
know
f o r
w i t h
u s
w e
i t
n o t
r e p a i r i n g
r e p a i r i n g ,
becaxise
b o t h
s h i p r e p a i r e r s
b u t
o r
o f
t h e m e a n i n g
n o w l e a s e d
t h e
d r y d o c k
l e a v e s
I
o f
o u r w o r k s h o p s
t o
t o g e t h e r
P a r t
d o e s
:
u t i l i s i n g
N o . l
t h a t
a n d s h i p s
p r o b a b l y
a d j a c e n t ,
i n
u s
On 7 t h June
Company
w i l l
t o
a n d e n g i n e e r
"We
t o
l i s t e d
w i t h i n
"of s h i p s
m a i n t a i n i n g
t h e b u s i n e s s
s h i p s
o f
o f
s u b m i t t e d
n o t
i n
m a i n t a i n i n g
P a r t
t h e management
e n d o f
t o
t h e
1 9 7 2 u n t i l
J u l y
o r
a b o u t
May 1 9 7 5 , a n d
1 9 7 4 , r e p a i r i n g
managed
P r e s t o n
b y
P o r t
t h e M e m o r i a l i s t s
and
t h e
s h i p s
company
A u t h o r i t y .
t h e
repaired^jCjfiUtsiders
t h a t
i n c l u d i n g
T h e r e
Government
d u r i n g
w e r e
t h i s
i s
some
a b o u t
p e r i o d .
t h e
We
a
f i n d
t h a t
s m a l l
p o r t i o n
o f
d r e d g i n g
i n
t h e
and
t o
f r o m
e i g h t .
e n d e d
work
t o
t h e
u n d e r t a k e n
December
for-
1975
of
1 9 7 4 ,
company
was
c o n s i s t s
t h e
was
s o
o u t s i d e
work
w h i c h
t u r n o v e r
December
of
r e p a i r
b u s i n e s s ,
The
3 1 s t
t u r n o v e r
T h i s
t o t a l
r e c l a m a t i o n .
t h e
1972
o r
c o m p a n y ' s
y e a r
r e p a i r
May
s e v e n
t h e
l a n d
w h e r e a s
r e l a t e d
w e r e
o f
f i n a n c i a l
m i l l i o n ,
was
t h e r e
company
£ 2 1
f a r
a s
i t
c o m p a n i e s
i n c l u s i v e
n o t
more
t h a n
£ 4 7 , 3 0 5 .
-
*
I t
Company
t o
L t d . ,
the
. P a r t
o f
o n e
of
w a s
n o t
S c h e d u l e .
a
t i m e
i n
s e l e c t
t h e
o f
p a r e n t
d i r e c t o r s
t h a t
i s o l a t i o n
a p p e a r e d
p a r a g r a p h
3
had
no
d o u b t
c o m p a n i e s
t h o s e
i n
w i t h
i n
t h e
P a r t
t e n u o u s
t h e
A
and
I ;
b u t
o f
and
e n t i r e l y
a
t h a t
I I
o f
same
t h e
g r o u p
t h e
d e p e n d e d
s u b c o n t r a c t e d
n o t e
m e e t i n g
d i r e c t o r s
c o n t r a c t s ;
on
by
Mr.
1 0 t h
s u g g e s t s
b u t
we
the
engaged
t o
Walker
i t
was
of
A p r i l
London
the
t h e r e
h a v e
no
may
t h e
p a r e n t
w i t h
Dock
D e p a r t m e n t
t h e
h a v e
t h e i r
CONFIDENTIAL
0
Government
House
company
i n
t n e
was
w h i c h
V
R e p a i r s
I n d u s t r y
o t h e r
i^-^'
t h e
s h i p s
D e p a r t m e n t
b e e n
a b o u t
of
e
Govc^ntf
f u l f
t h e
S h i p
t h
t h e
company
T r i n i t y
G r a v i n g
e v i d e n c e
and
p a r e n t
m a i n t a i n i n g
1 9 7 5 . b e t w e e n
t h a t
l i s t
of
1
i n
b e t w e e n
by
n
i n
b u f - t h e
c o m p a n i e s
o
whethc
v i e w
s p e c i f i e d
d e c i d e d
t h e
o r
d o u b t
s h i p r e p a i r i n g
t o
c o n t r a c t
of
i n
t h e
Government
s u b s i d i a r y
n e g o t i a t i o n s
d i r e c t o r s
a
two
w h i c h
of'
t h e
the
S c h e d u l e ;
of
n a t i o n a l ! z a t i
s e r i o u s
was
3
i n
m o s t
f o r
I t
i t s
S c h e d u l e
S h i p
b o t h
i n
c r i t e r i a
r e f i t t i n g
cn
f o r
Dock
company,
Dock
when
n o r
y e a r
h o l d i n g
h a s
w e r e
S e c o n d
t h e
a
G r a v i n g
p a r a g r a p h
G r a v i n g
Second
i n v o l v e m e n t
r e p a i r i n g ,
a s
1975
p r o l o n g e d
t h e
o f
Government
of
the
d i r e c t o r s ,
o f
t h e
p a r e n t
t h e
t h e
i n
company
t o g e t h e r
A f t e r
o f
s u b s i d i a r y .
f u l f i l
London
c r i t e r i a
c o m p a n i e s
t h e
taken
a p p r o v a l
b u s i n e s s
I'td.
P a r t
c r i t e r i a .
Government
t o
by
i t s
I
London
s p r i n g
o r
n e i t h e r
o f
w a s
the
P a r t
p u r e l y
p a r e n t
t h e
t h e
company
a c t i n g
t h e
t h a t
the
That
s e l e c t e d
the- d i r e c t o r s
t o
was
Though
one
u s
i n
f u l f i l
s u b s i d i a r i e s
t h e
to
i n c l u d e d
f e l l
L t d .
b e e n
t h e r e
and
1 9 7 4
w h o s e
R e p a i r s
t i m e
. d i d
t h a t
J u l y
s u b m i t t e d
t h o u g h
B i l l ,
I I
3 1 s t
was
and
o
t
t h e .
l o n g - t e r m
c o n t e n t .
2
CONFjJ2£MI4AL
The
p a r e n t
w h i c h
t h e
At
i s
c o m p a n y ^
t h a t
e n d e d
c o n s o l i d a t e d
the'
end
o f
200
s h i p r e p a i r i n g ,
i t s
1 9 7 5 ,
i n
t h e
t h e
y e a r
p r a c t i c a l
c o m p a n y ' s
March
b u t
some
3 1 s t
o v e r
£5
and
1 9 7 3
t h e
company
c e a s e d
i t s
some
f i x e d
of
f o r
3 1 s t
i n c l u d i n g
was
was
f i n a n c i a l
company
t u r n o v e r
c o n t r a c t s
1 9 7 3 ,
r e l e v a n t
t h e
p e r s o n s
work
the
o f
r e t a i n e d
w h i c h
f o r
March
t u r n o v e r
t h e
s h i p r e p a i r i n g ,
e m p l o y e d
t u r n o v e r
whom
t h e
J u l y
w e r e
y e a r
1974,
a d m i n i s t r a t i o n
by
w i t h
Howie
t o
c a r r y
e n g a g e d
ended
was
o u t
i t
i n
3 1 s t
work
London
b e i n g
s u b s i d i a r i e s .
Though
f e l l ,
p e r f o r m e d
m i l l i o n ,
i t s
a s s e t s .
y e a r ,
March
n i l .
on
A l l
t h e
G r a v i n g
p a r e n t
Dock
R e p a i r s .
We
d e a l
S h i p r e p a i r e r s
1 9 7 4
i n
L t d .
e n g a g e d
m a i n t a i n i n g
i n
Both
t h e
d o c k
i n ,
Both
o r
w i t h i n
a
J . B .
t h e s e
b u s i n e s s
s h i p s .
p o s s e s s i o n
gi*aving
n e x t
t h e
The
by
d a t e d
September
C r i s p
&
C o . ,
3 0 t h
s o l i c i t o r s
f i n a n c i a l
y e a r "
t r a d e
W e s t e r n
had
q u a l i f i e d
f o r
£ 3 . 4
i s
c o n d i t i o n
and
made
a
Company
t h a t
o f
more
and
t h a n
o f
Howie
"engaged
m a i n t a i n i n g
p a r a g r a p h
t h e
n a v y
same
i t s
t h e
s h i p s "
3 .
t h e
That
of
f i n a n c i a l
company
was
t u r n o v e r
c o u l d
be
b u t
b u s i n e s s
a s
o n l y
of
r e q u i r e d
i f ,
A s h u r s t ,
I n d u s t r y
Ltd,
t h a t
had
on
on
a
t h a t
g r o u p ;
had
a
December
M o r r i s ,
&
r e f i t t i n ^ o ^ ^ ^ ^ p ^ ^ o y e r s
1 9 7 4 ,
w i t h
and
a
the
1 9 7 4
a
t u r n o v e r s
1972
i t
o r
( l ) ( a )
c o n t r a c t
3 ( 1 ) ( c )
t u r n o v e r
t h e
r e f i t t i n g
J u l y
n e i t h e r
b e l o n g e d
subpai-agraphs
3 1 s t
n o t
and
J u l y
w i t h
C r i s p
d i d
( S h i p r e p a i r e r s )
W e s t e r n
3 1 s t
M o r r i s ,
p a r a g r a p h
3 1 s t
r e c k o n e d
r e p a i r i n g ,
by
by
I I ,
" r e l e v a n t
Howie
s o
y e a r
and
t h e
1 9 7 2 ,
on
P a r t
i n f o r m e d
i n
same
a
A s h u r s t ,
L a i r d
t h e
Howie
if-,
t h a t
w h i c h
w h i c h
( S h i p r e p a i r e r s )
f o r
member
i n t e r e s t
o r
was
M e s s r s .
Cammell
an
S c h e d u l e ,
£ 1 , 7 3 5 , 2 4 3 ,
t u r n o v e r
J u l y
o r
d r y - d o c k
December
t o
M e s s r s .
o f
Group,
of
3 1 s t
t o
I n d u s t r y
L a i r d
r e l e v a n t
Group
W e s t e r n
i n
a
a
Second
of
3 1 s t
on
e n t i t l e d
from
t a k e o v e r .
h o w e v e r ,
m i l l i o n .
t h e
W e s t e r n
r e f i t t i n g
1 9 7 6 ,
ended
m i l l i o n
f o r
L a i r d
of
t u r n o v e r
£5
Department
L a i r d
a
t h e
t h e
and
t h a t
t h e
w e r e
occupy,
Department
t o
i n
a c c o r d i n g l y
Was
o f
t h e
w a s ,
company
member
o f
L t d .
i . e .
were
t o
m e a n i n g
3 ( 1 ) ( b ) .
and
r e p a i r i n g ,
c o m p a n i e s
p a r a g r a p h
l e t t e r
companies
of
l i c e n c e
L t d .
Co.
and
h a v e
( 2 ) ( b )
i n f o r m e d
Cammell
V e n e z u e l a n
c o n t r a c t
w i t h
t h e
P e r u v i a n
Government
f o r
c o n t r a c t s
t h e
T h e s e
two
L a i r d
( S h i p r e p a i r e r s )
Ltd.
had
Group
i n
work
on
1972
c o n t r a c t s
and
had
i n
f i x e d
a s s e t s .
Cammell
Cammell
same
group
L t d .
r e f i t t i n g
t u r n o v e r
W e s t e r n
may
be
E n g i n e e r i n g
now
owned
o p e r a t e d
managed
H e l l y e r
g r o u p .
Humber
f i n a n c i a l
e n g a g e d
In
an
Lord
on
P e a r t
e n t i t l e d
t h e
p h r a s e
must;
be
d r y - d o c k "
hv nar­
by
i n
t h a t
Humber
t o
a
S t .
the
l i c e n c e
s o m e t h i n g
l e s s
t h e
a
t o
3 ( l ) ( b )
the
end
of
e n g a g e d
i n
Howie
L t d .
l i c e n c e
o t h e r
i n
and
"an
o f
on
was
t h e
t o
1 4 t h
i n
(Hull)
t h e
same
t o
be
r e p a i r i n g
a
ownc
r e l e v a n t
s h i p s -
O c t o b e r
who
t h e
di-y-dock.
i n t e r e s t
d r y - d o c k
of
a g r e e d
d o i n g
occupy
was
T r a w l e r s
t h e
was
Hull
L t d .
Emerald
B r o t h e r s ,
who
occupy
t h e
197?
a t
( H u l l )
members
b u s i n e s s
H e l l y c r
J u l y
d r y - d o c k
U n i t e d
w e r e
Lords
Andrews
3 1 s t
a
and
B r i t i s h
of
on
i n
t u r n o v e r
t h e
S t .
1976,
b o o k e d
r e p a i r
What
d r y - d o c k "
5
5
does
mean.
p o s s e s s i o n
q u a l i f i c a t i o n
the
i
n
i m p o s e d
CONFIDENTIAL
o f
the
therefore *
t h a t ,
T r a w l i e r s
m i l l i o n
than
was
L t d . ;
a
House
1 o/nw^s
p a r a g r a p h
t h e
J u l y
o f
t h e
J . B .
Humber
Emerald
Andrews,
t o
i s
i n
of
Andrews
had
n e i t h e r
S t .
1972
of
o f
W e s t e r n
and
t h o s e
o t h e r
3 1 s t
member
and
. s h i p s ,
U n i t e d
£ 3 . 4
" e n t i t l e d
w h i c h
t h e
c o m p a n i e s ,
1974
on
m a r g i n a l l y
company
B r o t h e r s
Andrews
J u l y
g i v e n
s a i d
was
and
e x c e e d i n g
3 1 s t
n o r
That
Humber
S t .
y e a r
a n s w e r
d r y - d o c k ,
I t
and
s t i l l
c a s e
B r i t i s h
t h r e e
a
no
s u p e r v i s e
t h a t
December
w i t h
the
Ltd.
H e l l y e r
The
was
i n t e r e s t
d i r e c t o r s
t o
was
Cammell
had
t h e
Ltd.
L a i r d
Ltd.
to
by
Howie
t h e
P e r u v i a n
no
and
f i n d
L t d .
t o
L t d .
had
t h a t
Cammell
L a i r d
dock
We
m a i n t a i n i n g
Esquimaux
by
H e l l y e r .
L t d . ,
i t
i t
d e s t r o y e r s .
and
c o n t i n u e d
3 1 s t
a g g r e g a t e d
Company
t h e
by
on
o r
t u r n
r e p a i r i n g
Ltd.
t h a t
a s s e t s
Cammell
e v i d e n c e
J . B .
S h i p r e p a i r e r s
We
t o
g r a v i n g
as
y e a r ,
1 9 7 2 .
V e n e z u e l a n
c o n t r a c t s .
and
b e f o r e
S h i p r e p a i r e r s
or
some
c o m p a n i e s
o t h e r
t h e i r
( S h i p r e p a i r e r s )
f i n a n c i a l
and
i s
P e r u v i a n
o f
r e p a i r i n g ,
and
d r y - d o c k
L a i r d
S h i p r e p a i r e r s
r e l e v a n t
a
two
e m p l o y e e s ,
( S h i p r e p a i r e r s )
and
1974
s o l d
the
no
o f
i n t o
W e s t e r n
had
T h e r e
L a i r d
V e n e z u e l a n
-and
and
( S h i p r e p a i i " e r s )
i n
e n t e r e d
s u b - c o n t r a c t e d
L t d .
p o s s e s s i o n
i t s
t h e
b e e n
( S h i p b u i l d e r s )
L a i r d
w e r e
r e f i t t i n g
P a r t
II
of
the
Second
r
S c h e d u l e
t o
the
,iU
I­
CONFIBhNlfAL
We
w o u l d
t h a n
by
e x p e c t
t h e
t h e
d r y - d o c k .
a
b o o k i n g
L t d .
We
B i l l
i s
an
was
a
t h u s
s h i p
t o
us
We
d r y - d o c k
on
o f
f i n d
t h e
b o o k i n g
any
and
3 1 s t
w i t h
a
o c c u p y i n g
p o s s e s s i o n
of
t h e
t h e
i n t e r m e d i a t e
o c c u p a t i o n
t h a t
J u l y
H e l l y e r
1 9 7 4 .
q u e s t i o n
o m i s s i o n
n o t w i t h s t a n d i n g
the
b u s i n e s s
of
b e c a u s e
t h a t
of
on
w h e t h e r
W e s t m i n s t e r
3 1 s t
r e p a i r i n g
3 1 s t
J u l y
1974
b e c a u s e
s h i p r e p n i r i n g
of
of
t h e
J u l y
s h i p s ,
i n c l u s i o n
n o t w i t h s t a n d i n g
S h i p r e p a i r e r s
v i r t u e
1 9 7 4
i t
a l b e i t
i n
was
of
t h a t
t h e
of
t h e
i t s
London
s h i p r e p a i r i n g
m i n i m a l ;
i n c l u s i o n
n o t w i t h s t a n d i n g
b u s i n e s s
o f
t h a t
Cammell
t h o s e
of
J . B .
Howie
on
3 1 s t
J u l y
L a i r d
two
and
1 9 7 4
S h i p r e p a i r e r s
w h o s e
t u r n o v e r
c o m p a n i e s
f o u r t h ,
b e c a u s e
of
t h e
e x c l u s i o n
Company
on
t h e
ground
a r e
i n c l u d e d ,
m i n i m a l ;
Andrews
E n g i i i e e r i n g
d r y - d o c k
a
on
l i c e n c e
3 1 s t
t o
I t
t h a t
and
a
o f
more
­
Company,
on
W e s t e r n
t o
o f
d o c k - o w n e r .
b e c a u s e
thir-d,
a
the
i n
s o m e t h i n g
p u r s u a n c e
g i v e n
p r e s e n t e d
i n
Dock
b u s i n e s s
was
been
be
way;
G r a v i n g
by
has
t o
i n
manager
a r e
s e c o n d ,
t h e
o r
the
Company
s m a l l
d r y - d o c k
o c c u p i e d
h y b r i d
e n g a g e d
o t h e r ' h a n d ,
i n t e r e s t
from
f i r s t ,
D r e d g i n g
a
e v i d e n c e
b e t w e e n
B r o t h e r s
o f
c h a r t e r e r
No
" l i c e n c e "
t h e
o n the
o c c u p a t i o n
owner,
u n d e r
i t ,
we
we
a g r e e
1974
o c c u p y
has
s h o u l d
J u l y
n o t
-with
b e e n
u r g e d
We
b e a r i n g
u n d e r l y i n g
s e l e c t e d
t w e l v e
t h e i r
by
t h e
t h e
B i l l
s h i p r e p a i r i n g
c a s e
t o
a
on
f u r t h e r
f o r
u s
"amount
on
o u t s e l v e s
Government
t r i v i a l i t i e s .
on
go
n o t
t h a t
Humber
t h e i r
t o
an
S t .
work
i n
e n t i t l e m e n t
i t .
c o n c e r n
t h e
d i d
o f
and
b e h a l f
w i t h
t h a t
s a y
q u e s t i o n
s u c h
t h e y
t h a t
w h e t h e r
s h o u l d
Selc^P^SilSKcI^if
the
a r e
t h e y
n a t i o n a l i z a t i o n ,
c o m p a n i e s ,
o f
any
and
be
t h e
t r i v i a l i t i e s l
i n d e e d
h a v e
o f
t h e
l i t t l e
c o m p a n i e s
e s p e c i a l l y
a l l o w e d
House.
Government
t o
t h e
p r e s e n t
I t
t h i s
on
i s
e x a m i n a t i o n
b e h a l f
o f
S e l e c t
t h i s
C o m m i t t e e
s h o u l d
we.
j u s t
h a v e
t h a t
of
o f
i t
s u b j e c t
a
t h e
d e p e n d
House
on
m e n t i o n e d .
the
i t s e l f .
G o v e r n m e n t . t h a t
r i g h t
Commons
p o i n t
p r e s e n t s
t h e
c o n s t i t u t i o n a l
a
a t
a n s w e r s
Mr.
Gamon,
of
s h a r e
t h e
v i e w
e x p r e s s e d
i s
g r o t e s q u e
t h a t
t h e
p l e a d
Lords
the
i s s u e
We
to
of
f u n d a m e n t a l
h i s
o r
to
c a u s e
t h e
t h e
House
k i n d
p e r h a p s
b e f o r e
of
o f
q u e s t i o n s
a n t i c i p a t i n g
t h a t
t h e
s h i p r e p a i r i n g
m i g h t
c o m p e l
b u s i n e s s
t h e
u s
o f
1
u n e x p r e s s e d
c o m p a n i e s
f i n d
t h o u g h
t h a t
p a r a g r a p h s
t o
r e p a i r i n g
S c h e d u l e ,
s u g g e s t e d
a c t i v i t i e s
we
3
n o t
c o m p a n i e s .
He
i n t o
o w n e r s h i p
p u b l i c
c o u l d
s h i p r e p a i r i n g
t h a t
t h e
i n
who
o r
s h i p r e p a i x " i n g
n a k e d
t h e
d e v i c e
B i l l s
and
t h e
P r o m o t e r s
a n d - n o
c h o s e n
p l a y
t o
a s
to
t o
i n c l u d e
and
i n c l u d e
amount
t o
S c h e d u l e
t h a t
on
w e r e
w o u l d
c l a s s
the
B i l l
s u c h
s o
-in
by
t h a t
b e c a u s e
h y b r i d i s e
t h e
t h e
two
That
a
I r o n
d e v i c e ,
c l a s s
t h a t
That
n o t
"only
i n e f f e c t i v e
t h a t
the
a s
So
" t h e
be
t o
t h e y
have'
s a i d ,
to
tak *
e
make
t h e
was
t h e
a
f
Govei-nment
d i d
n o t
t h e
s t a t e d
c l a s s .
and
To
t h e
o
r
s e l e c t e d
Government
B i l l .
of
C l i f t o n - B r o w n
c o m p r i s e
19(2)
assume
employed
b e e n
c l a u s e
3
as
m a j o r
h a s
" g e n u i n e "
r
n a t i o n a l i z a t i o n
buP&r"ICutMli!Aiting
h y b r i d i s e
w a n t e d
w o u l d
i g n o r i n g
o
11
naming
c l a s s
i n
:
Comp-s /
must
the.
t h e
u n e x p r e s s e d
one
S p e a k e r
would
m a j
d e s c r i b e d
b a r e
S t e e l
we
i
b r i n g
s o
way
t h a t
t h e
as
o
e x c l u s i v e l y
them
B i l l .
o r
the
company
us
be
a
t o
D r e d g i n g
But
s o
Mr.
c l a s s "
i s
t h a t
j u s t i f y
do
i n
an
s o u g h t
a l m o s t
of
and
of
f a c t
n o t
to
the
R u l i n g s
t o
Government
d e s c r i p t i o n
^
D
S c h e d u l e ,
e i g h t e e n
from
the
The
i t s e l f
of
shrank
I I
d e s c r i b e d
W e s t m i n s t e r
I t
the
s h i p r e p a i r i n g
l a n d - r e c l a m a t i o n .
o t h e r s .
f i n d i n g
as
i n
P a r t
" g e n u i n e
Government
t h a t
c o m p a n i e s
draw
d o e s
r e l y i n g
and
i t .
a
t h e
was
K i n g .
c o m p a n i e s
as
a l l .
and
t o
him
g e n u i n e
c o m p a n i e s " ,
S p e a k e r
S c h e d u l e
a t
b l e s s e d
Mr.
o f
the
of
c l a s s
company
a d o p t e d
and
t h e
Company
e n g a g e d
t h e
beyond
p a r l a n c e
some
s e l e c t i o n
of
o r d i n a r y
framed
w i t h o u t
I
i n
s h i p r e p a i r i n g
w i t h
was
m e a n i n g
Part
t h e
and
D r e d g i n g
n o t
d r e d g i n g
t h o s e
i n
by
t h a t
a
f o r
i n s t a n c e ,
I I
the
n a t i o n a l i z e d
c o n t e n d e d
c o m p a n i e s
e n g a g e d
l o o k
b e
s h i p r e p a i r i n g
a
l i s t e d
P a r t
t o
company
w i t h i n
d e s c r i b e d
a r e
W e s t m i n s t e r
t h a t
s h i p s
o f
c l a s s ,
w h i c h
t h a t
s h o u l d
and
o f
s o
has
draw"
i n t e n d
claS^J
do
so
W
0
Second
s o m e t h i n g
f
o
r
1
We
f i n d
t h a t
t h e
B i l l
i s
h y b r i d
o m i s s i o n
o f
t h e
W e s t m i n s t e r
D r e d g i n g
t h e
i s
n o t
h y b r i d
r e s p e c t
B i l l
London
and
G r a v i n g
Humber
Dock
S t .
w i t h
Company,
w i l l
be
s e e n
o f
W e s t m i n s t e r
D r e d g i n g
i s
b a l a n c e d
t h e
h a v e
by
Dock
London
S h i p r e p a i r e r s
In
R u l i n g
of
Was
t o
t h e
t h e
c o m p a n i e s
c l a s s
i f
B i l l .
Mr.
I r o n
and
o u t
o f
t h e
f i r s t .
i s
n o t
d e a l s
o f
the
" f o r
o f
o
of
o t h e r
company,
s i z e ,
b u t
t o
was
t o
o r
J . B .
w h i c h
I r o n
and
w h i c h
we
by
and
e x c e e d e d
q u e s t i o n
S t e e l
t o
t o
us
of
t h e
o f
he
Second
£ 3 . 4
t h e
and,
t h e
o r d e r
n o t
was
i n
t o
t h e
t u r n o v e r
t o
q u a l i f y
one
t o
company
Company,
t u r n o v e r
i n
o f
s h i p r e p a i r i n g .
Government
has
d e c i d e d ,
i n
t h e
p u b l i c
o w n e r s h i p
s o l e l y ^ b ^ ^ e j a ^ s ^ ^ o f ^ j i t s
s i z e
by
as
c a s e
r e a s o n
o f
o f
some
r e s p e c t
b u s i n e s s
i n t o
B i l l
3 ( l ) ( c )
t h e
i t
t h e
m e a n t
c o n f i n e d
i n
t h e
s h i p r e p a i r i n g
E n g i n e e r i n g
B i l l
he
n o t
b r i n g
was
by
and
t o
P a r a g r a p h
Ln
o f
s e l e c t e d
S c h e d u l e
b u s i n e s s
Dock
germane
a g g r e g a t e
m i l l i o n
o f
a d e q u a t e
c o n d i t i o n
a s s o c i a t e d
'
B i l l
m a t t e r
t h i n k
i n d u s t r y .
t h a t
an
c o m p a n i e s
t h e
t h e
t h a t
s u b j e c t
We
o f
r e f e r r e d ,
i n
foi-med
meant
t h e
1 9 6 7
a l r e a d y
t h e
t h a t
i t s
A c t
c o n t a i n e d
s h i p r e p a i r i n g
r e q u i r e d
w h i c h
t h e
i s
G r a v i n g
London
r a i s e s
t u r n o v e r
t h a t
but
o f
I I ,
W e s t e r n
t h e
Humber
S c h e d u l e
and
h a v e
t h i s
t o
r e q u i r e s
c o n c e r n e d
t h e
germane
s h i p r e p a i r i n g
and
h a v e
II
b u s i n e s s
Howie
n a t i o n a l i z a t i o n .
Part
t h e
o u t s i d e
o w n e r s h i p
germane
s u b m i t t e d
of
t o
t h e
n o t
t h e
was
f o r
s h i p r e p a i r i n g
I I ,
w h e t h e r
I n d u s t r y
t u r n o v e r
w o r d s
and
m a t t e r
f o r
c l e a r
i n d u s t r y
b u s i n e s s
Dock
p u b l i c
must
t h e
t h e
S h i p r e p a i r e r s
( S h i p r e p a i r e r s )
L a i r d
f o r
n o t
t h e
compnay
s e l e c t e d
company
l e a s t ,
t h a t
o f
Cammell
King,
n a t i o n a l i s a t i o n ;
a t
407
B i l l
t u r n o v e r
i n
a
d e s c r i p t i o n
g e r m a n e
t u r n o v e r
W e s t e r n
m i n o r
t h e
3 ( 1 ) ( c )
c o m p a n i e s
i n c l u s i o n
t h e
t h a t
I t
w i t h
t h e
t h e
f i n d
b u s i n e s s e s
a n o t h e r
t h e
S t e e l
t h a t
t o
We
o f
s h i p r e p a i r i n g
S c h e d u l e
d e s c r i p t i o n
I s
p a r a g r a p h
i s
e f f e c t
t h a t
G r a v i n g
S p e a k e r
t h e
I t
and
w i t h i n
T h e r e
h y b r i d i t y .
Company.
Howie,
Company,
m i n o r
Company
b r o u g h t
r e s p e c t
Andrews.
I t
G r a v i n g
J . B .
i n
In
t h i s
i t s
s h i p r e p a i r e r s .
We
f i n d
i s
n o t
t h a t
t h e
germane
r e l a t e s
t o
n o t
i n
i s
a l s o
r e s p e c t
o f
t h e
knows",
t h e r e
S c h e d u l e
we
and
t o
no
P a r t s
t h e
w a i t i n g
b e t w e e n
I
t h e
m a r i n e
II
o f
the
o f
p r o n o u n c e d
t h e
f o r
f a c t
B i l l
c o n s c i o u s
of
o f
t h e
s o
o f
turnover
f a r
as
the
B i l l
i s
i t
d i e s e l
e n g i n e
v i r t u a l l y
as
f a r
Second
S c h e d u l e
so
f a r
e n g i n e
and
t r a i n i n g
h y b r i d
on
about
as
o f
n o t
I
P a r l i a m e n t
t o
N e v e r t h e l e s s ,
M e m o r i a l i s t s
g i v e n
an
t h e
he
t h e
F i
as
g i v e
we
Speaker
t h e
House
e f f e c t
t o
o t h e r
o p p o r t u n i t y
t o
do
p l e a d
w o u l d
and
to
h a v e
r u l e s
o f
t h a t
s u b j e c t
of
any
B i l l
Lords
t o
a f f e c t e d
t h e i r
i n d u s t r y
t o
w h a t
u n a b l e
w h e t h e r
by
B i l l
t h e
b e f o r e
a
a
a
i
B
w i t h
of
i n
t h e
d e c i d e
c a s e
a r e
2(4)
a g a i n s t
e
are
i n t r o d u c e d
be
^
e x t e n t ,
We
s e c t i o n
w i l l
to
t h i s .
of
i s
P e t i t i o n s
b e s t
add
t h -
all­
B i l l '
t h e
s h o u l d
S e l e c t
be
Commj-^
n o t
i n v e s t i g a t e d
b o t h
t h e y
s h o u l d
Houses
w e r e
h a v e
r e g a r d i n g
d e s i g n e d
a
t o
r i g h t
t o
by
any
g r e a t
e x t e n t
h y b r i d ! t y .
b o t h
p l e a d
Houses
h i s
t h e
o r i g l
a r e ,
howev
e n s u r e
tha
We
t o
c a u s e
b e f o r e
n
them
j-r
c
c o u l d
show
t h a t
t h e i r
d i s a d v a n t a g e
t h a n
i t
o t h e r
b e e n
c a r e f u l
w o r d s ,
m a j o r i t y ,
from
S
i n d u s t r i e s '
a c c o u n t
p r o c e e d .
p u r s u a n t
o f
our
i s
t h i s
any
p a r t i e s
t o
w h e t h e r ,
s i n c e
t h e
we
s e c t i o n s
c o m p a n i e s
t h a t ,
h a v e
and
' We
c o n v i n c e d
h e
r
they
H o u s e .
.
t h e
1 9 1 1 ,
f i n d i n g ,
d e c i d e
c e r t a i n
from
Act
p r o b a b i l i t y
i f
s
and
e v i d e n c e
I I
i s
P a r t s
i
and
no
t h a t ,
or
i n d u s t r y
and
I m p o r t a n t
t o
f a c t
c e r t i f i c a t e
o u r
t h a t
P a r l i a m e n t
n a t i o n a l i z a t i o n
t h e
B i l l
a s s u r a n c e
?
t h a t
t h e
m a n u f a c t u r i n g
m a r i n e
Gamon s
and
c o n d i t i o n
w h e t h e r
h a v e ' r e c e i v e d
Mr.
t h e
d i s c r e p a n c y .
c o n s c i o u s
o f
d e c i d e
i n c o n g r u i t y
f i n d
-Having
of-
of
a i r c r a f t
s h i p b u i l d i n g ,
a c c o x - d i n g l y
t h e
t o
the
We
t h a t
c o m p a n i e s .
s h i p b u i l d i n g ,
a c c e p t
i s
i n
m a t t e r
duty
o f
i n d u s t r i e s .
b u t
s u c h
s u b j e c t
our
r e s p e c t
t h e s e ;
h y b r i d
s h i p r e p a i r i n g
i n
r e l a t e
i s
t h e
h y b r i d
t r a i n i n g
We
t o
t h e
I t
B i l l
the
from
power
the
of
w o u l d
p o w e r
t h e
l e g i s l a t i o n
put.
to
of
h i s
f e l l o w s .
p r o t e c t
t h e
w o u l d
s t a t e ,
G o v e r n m e S Q N FID
the
p u t
him
t o
P a r l i a m e n t
i n d i v i d u a l
or,
i f
E N TIA
L
you
Z
r e
has?
from
the
p r e f e r
i t *
.
r
As
King
and
we
h i s
have
p r e d e c e s s o r ,
t h i n k ,
a l m o s t
o f
t h e
h y b r i d i t y
t o
s u b m i t
o r
C o m m i t t e e s
p a i n s
t o
We
h a v e
i s
n o t
h a v e
t h e i r
a l r e a d y
h y b r i d
b e e n
f o r
and
I t
depend
h i s
on
s u c h
r i g h t
p h r a s e s
o r
m a i n t a i n i n g
o r
as
Second
S c h e d u l e ' c o v e r
c
o u l d
*tad
I I
he
5
g l e a n
h e
had
t h e
him,
and
t h e
t h a t
had
from
P r o b a b i l i t y
of
d i f f i c u l t
e n s u r i n g
P a r t
i n
t h a t
and
n o t
t o
t h i s
was
t a k e
B i l l
w i s h
i s
o r
h a v e
e x c l u d e s
t o
n a t i o n a l i z e
w h e t h e r
e i t h e r
House
House
a b o u t
of
g r e a t
t h e
w h i c h
f i g h t
a
Commons
u n d e r t a k i n g s
the
b u s i n e s s
" e n t i t l e d
of
a
t h e
q u e s t i o n
t h e
S e l e c t
Government
w h i c h
o f
of
w h e t h e r
t h e
as
r e l u c t a n t
h y b r i d i t y .
w h e t h e r
f o r
t h e
of
t h e
a v o i d
f i t t e d
to
v e r y
House
we
p u r p o s e s
t h e r e f o r e ,
to
i m p o r t a n c e
O f f i c e r s
the
d o e s
h a v e ,
o f
a
a
subject:
m i g h t
t h e
m e a n i n g
r e p a i r i n g ,
l i c e n s e
t o
a s s i g n e d
an
r e f i t t i i
o c c u p y
a
d r y ­
dock".
I t
i n
of
i n t o
be
S p e a k e r
j u d g e m e n t
q u e s t i o n
Committees
and
t h e
B i l l s
can
n a t u r a l l y
as
a
answer
"engaged
d r a f t s m a n
was
i n t o
Mr.
f u n d a m e n t a l
They,
so
c l a s s
s u c h
o f
t o
Government
b e f o r e
t a s k .
t o
of
s h i p s "
g r a v i n g
The
came
a
t h e
o p i n i o n
of
dock
t h a t
c a u s e
t h e
t h e
a r e
o p i n i o n
d r a f t
d r a w i n g
t h a t
c u r i o u s
c o n s t i t u t i o n a l
p l e a d
our
who
the
Lords.
d r a f t e d
n a t i o n a l i z a t i o n
u n d e r t a k i n g s
t o
B i l l s
of
C l i f t o n - B r o w n ,
Committees
of
R u l i n g
o f
p o l i c y
d e g e n e r a t e d
i n
the
i s
House
C o u n s e l
s u c c e s s f u l
i n t e n d e d
be
e x p r e s s e d
has
P a r l i a m e n t a r y
of
t h e y
t h e
s i g h t
Governments
d e c i s i o n s
of
t h e
Speaker
l o s t
r u l e .
w h e t h e r
above
Mr.
c o m p l e t e l y
m a j o r
C o m m i t t e e s ,
i n d i c a t e d
t o
h a v e
e n o u g h
a l l
no
him
t o
companies
o t h e r
company
s o u r c e s
on
s u c h
t h a t
were
a v a i l a b l e
s u c c e e d e d .
a t t e m p t
f o r
t h e
r e l y
k n o w l e d g e
B i l l
f a i l e d .
As
i t
i n
make
a l w a y s
u s ,
w a s ,
he
t h a t
I I
11
f u l f i l l e d
n o t
t o
P a r t
P a r t
i n f o r m a t i o n
I m p o s s i b l e
b u t
t h e
as
o f
t h e
h i s
when
i t
c o n d i t i o n s
Government
s y m p a t h e t i c .
w o u l d
i n
k n o w l e d g e
a l l
was
d e n i e d
ANNEX
B
THE INDUSTRIAL AND ECONOMIC IMPLICATIONS OF DELAY TO
THE AIRCRAFT AND SHIPBUILDING INDUSTRIES BILL
Memorandum "by the Secretary of State for Industry
INTRODUCTION
This note examines the industrial and economic implications of
delay to the Aircraft and Shipbuilding Industries Bill. It is
Written on what it must take to be the most likely assumption ie
"that the Bill would not become an Act until November and that
"Vesting .day would be in February 1 9 7 8 .
SHIPBUILDING AND SHIP REPAIRING
2
For warship building a deferment of public ownership will not
have any substantial industrial or economic implications but it will
Put back ovir thinking abo\it the scope for a modest expansion of our
export business in small warships.
3 ^ A delay to the Bill will have an adverse effect on the
shiprepairing industry in putting back much needed investment which
f course is most unlikely to be forthcoming under private ownership
f shiprepairing is excluded from the Bill. It could also lead to
P*ie or more early closures by shiprepairing companies who have been
huyirig orders at a loss and are not willing to carry on, but their
Problem would of course have to be faced in the event of
Nationalisation.
Q
l
4
The most serious problem lies with the merchant shipbuilders
here the public corporation is needed to:
w
make, and put into effect, plans for a merchant shipbuilding­
i
industry that will be able to stand on its own feet; it is
difficult to get effective long-term planning and unrealistic
to expect any significant new investment by the individual
companies while the public ownership issue remains unsettled;
ii channel the funds available from the Selective Intervention
Fund to the yards where they can be used most effectively:
until we have access to company records after nationalisation
we lack the informat-Wia.saq-drEp^eri to do this.
i
4. *
4-v
- * f CONFIDENTIAL
...
5
Apart from these industrial considerations, until the
Corporation is formed the Government itself will bear the main
brunt of difficult decisions on the allocation of aid and hence
alleged responsibility for redundancies although, of course, we
could not escape political pressure to intervene in such
decisions even after nationalisation. In addition , until the^
Corporation is formed, the shipyard workers redundancy scheme is
in suspense though we have still to find an opportunity of
discussing this with the trade unions.
6
However, unless we run into difficulties with the EEC Commissio­
the availability of the new Intervention Fund provides a means of
avoiding the threatened collapse of the merchant shipbuilders and ^
the creation of National Shipbuilders and Repairers Limited provide
a useful instrument for action for securing orders for the industry'
i
7
In summary, delay to the Bill could have long term costs, and
involve serious political and administrative difficulties for the
Government in administering the Intervention Fund, but with the nev
policy initiative referred to above the delay would, not cause
irreparable damage. On the basis of current policies we can get oy,
though perhaps only just. And it is of course mistaken to imagine
that nationalisation itself will not carry with it considerable
political and administrative problems.
AIRCRAFT
8
The aircraft "industry is running down, mainly because of fall
volume of work on civil aircraft. It is almost inevitable that
employment will drop by over 10% ( 5 , 0 0 0 ) over the next -/"ear or so.
The scale of run down thereafter will depend significantly on
decisions yet to be taken.
111
9
There is only one civil aircraft whose launch might quickly., ^
affect these prospects - the HS146 which as at present formulated
a doubtful proposition. Whether it will prove a worthwhile
.
proposition on which to expend the funds of the public corporatio
remains to be seen: it will certainly not go ahead under private
ownership unless the Government meets all the main cost.
:
10
The only other immediate significant possibility is the cnance
that we might secure a major overseas sale of the BAC111 to Roman '
Japan or India. The prospect of securing one of these contracts
not significantly affected by the nationalisation issue.
11
In the slightly longer term, the main potential prospect apa­
from the HS146 lies in overseas collaboration. Negotiations a ?
currently taking place which require series of actions commencing
soon and ending in long-term commitments, or otherwise, perhaps .
within the next 12 months. These need a strong single UK enterp
to negotiate with the overseas companies and this is needed
^
Follow up action with Boeing, the strongest possibility, is due ^
March and could be prejudiced. Any loss of such overseas p i ' y
would be serious. Meanwhile pressure is mounting from the u r n
for positive Government action on new civil projects to safegua
long-term employment.
6
s o o n
n
0
eC
r
011
g C
12
Against this, there is no certainty that the negotiations on
the collaborative projects will in fact come to a head in the next
6 months or so and there could be advantage if some of the
inescapable run down in manpower took place before nationalisation.
Moreover if the negotiations did come to a head it might be
possible to persuade the two main companies to adopt a more united
front. This might conceivably be done through the Organising
Committee for British Aerospace if that can be kept in being: its
Chairman takes the view which may, or may not, prove correct, that
continued uncertainty will cause it to drift apart.
CONCLUSIONS
13
For all the industries affected a prolongation of uncertainty
is itself damaging and involves risks to employment.
14For shipbuilding, delay to nationalisation will cause some
long-term damage to the industry. But the policy initiatives now
decided on will avert serious immediate damage. Delay will make the
Selective Intervention Fund less effective and increase the period
for which aid is needed, though assistance will still be needed
after nationalisation through British Shipbuilders. It will lead
to some political embarrassment to the Government in administering
the Intervention Fund. But the Intervention Fund problem is not
decisive unless we come to grief in the EEC.
15
For ship repairers delay is likely to precipitate closures, but
so would a decision to exclude them from the Bill.
16
Eor aircraft there is a risk that delay will prejudice important
"business opportunities of major long term importance.
E G V
18 FEBRUARY
1977
3
ANT7EX C
, THE AIRCRAFT. AND SHIPBUILDING INDUSTRIES BILL AND THE PARLIAT'IENT ACTS, 1 9 1 1 AND 1 9 4 9
1.
S e c t i o n 2 of t h e P a r l i a m e n t Act 1 9 1 1 ( a s amended by t h e 1 9 4 9 A c t ) a p p l i e s where
a p u b l i c D i l l i s passed by t h e House of Commons i n each of two s u c c e s s i v e
Sessions,
i s s e n t t o t h e House of Lords a t l e a s t a month b e f o r e t h e end. of b o t h t h e s e S e s s i o n s ,
and i s r e j e c t e d by t h e Lords i n each of t h e s e S e s s i o n s .
On i t s r e j e c t i o n by t h e
Lords on t h e second o c c a s i o n t h e n , u n l e s s t h e Commons d i r e c t t o t h e c o n t r a r y ,
the
B i l l i s p r e s e n t e d f o r Royal Assent and becomes law i n t h e form d e s i r e d by t h e Commons
A B i l l i s deemed t o be r e j e c t e d by t h e Lords i f i t i s not passed by them e i t h e r
w i t h o u t amendment o r o n l y w i t h such amendments a s may be a g r e e d t o by b o t h H o u s e s .
Before t h e B i l l i s p r e s e n t e d f o r t h e Royal A s s e n t , t h e Speaker must c e r t i f y u n d e r
S e c t i o n 2 ( 2 ) t h a t t h e p r o v i s i o n s of t h e S e c t i o n have been d u l y complied w i t h .
2.
The B i l l s e n t t o t h e Lords i n t h e second. S e s s i o n c o u n t s a s t h e same a s t h e B i l l
s e n t up i n t h e p r e c e d i n g S e s s i o n i f i t i s i d e n t i c a l , o r c o n t a i n s only amendments
c e r t i f i e d by the- Speaker u n d e r S e c t i o n 2 ( 4 ) t o be r e q u i r e d because of t h e l a p s e of
t i m e o r t o be t h e same a s amendments made by t h e Lords i n t h e p r e c e d i n g S e s s i o n .
( T h e r e i s a l s o a p r o c e d u r e f o r t h e Commons t o s u g g e s t amendments t o t h e L o r d s , n o t
relevant to t h i s case.)
3.
­
The A i r c r a f t and S h i p b u i l d i n g I n d u s t r i e s B i l l was r e j e c t e d by t h e Lords l a s t
S e s s i o n w i t h i n t h e meaning of t h e P a r l i a m e n t A c t s ( i n t h a t t h e y i n s i s t e d upon amend­
ments e x c l u d i n g s h i p - r e p a i r i n g which t h e Commons d i d n o t a c c e p t ) .
back t o t h e Lords t h i s S e s s i o n i n a form which f u l f i l s
down i n t h e A c t s ;
I t h a s been s e n t
t h e c o n d i t i o n s a s t o form l a i d
t h e Speaker h a s so c e r t i f i e d , h a v i n g r e j e c t e d r e p r e s e n t a t i o n s made
t o him i n t h e House t h a t t h e B i l l d i d n o t comply with them.
4.
The f a c t t h a t t h e B i l l h a s now been d e c l a r e d h y b r i d i s n o t t h o u g h t t o
t h e a p p l i c a t i o n of t h e P a r l i a m e n t A c t s .
A h y b r i d B i l l i s a p u b l i c B i l l t o which
Standing Orders r e l a t i n g to p r i v a t e business a r e a p p l i c a b l e ;
B i l l w i t h i n t h e meaning of h e P a r l i a m e n t A c t s .
x
effect
i t i s s t i l l a public
A s u g g e s t i o n t o t h e c o n t r a r y was
made i n t h e c o u r s e of t h e p r o c e e d i n g s b e f o r e t h e Examiners on t h e A i r c r a f t
S h i p b u i l d i n g I n d u s t r i e s B i l l , but i s c o n s i d e r e d t o be i n v a l i d .
and
The A i r c r a f t
end
S h i p b u i l d i n g I n d u s t r i e s B i l l could be p r e s e n t e d f o r t h e Royal Assent u n d e r t h e
P a r l i a m e n t A c t s a t t h e end of t h e p r e s e n t S e s s i o n r e g a r d l e s s of w h e t h e r t h e Lords
had completed t h e i r c o n s i d e r a t i o n of i t .
b u t t h r e e of t h e i r r e p o r t :
The Examiners say i n t h e l a s t paragraph­
"Since t h i s B i l l i s introduced with the c e r t i f i c a t e
from
t h e Speaker p u r s u a n t t o S e c t i o n 2(4) of t h e P a r l i a m e n t Act, 1911, t h e House of Lords
w i l l bC u n a b l e i n a l l p r o b a b i l i t y t o g i v e e f f e c t t o any p e t i t i o n s a g a i n s t t h e B i l l " .
5.
The r e j e c t i o n "by t h e Lords of t h e A i r c r a f t and S h i p b u i l d i n g I n d u s t r i e s B i l l this
S e s s i o n , w i t h i n t h e meaning of t h e P a r l i a m e n t A c t s , could o c c u r i n one of s e v e r a l ways.
The Loid.s might simply r e j e c t t h e B i l l on Second o r T h i r d R e a d i n g , b u t t h i s i s not
expected.
Second, t h e Lords could f a i l t o complete c o n s i d e r a t i o n of t h e B i l l by the
end of t h e S e s s i o n ;
a s n o t e d a b o v e , t h e B i l l could t h e n be s u b m i t t e d f o r Royal Assent.
T h i r d , t h e Lords could amend t h e B i l l i n ways n o t a g r e e d t o by t h e Commons.
I f the
two Houses had n o t r e s o l v e d any d i f f e r e n c e s of o p i n i o n o v e r such amendments by the end
of t h e S e s s i o n , t h e B i l l could be s u b m i t t e d f o r Royal A s s e n t .
might a c c e p t some Lords amendments b u t n o t o t h e r s ;
F o u r t h , t h e Commons
and a g a i n , i f t h e Lords did not
g i v e way, t h e B i l l could be s u b m i t t e d f o r Royal Assent w i t h t h e amendments accepted "by
t h e Commons.
If,
however, t h e Lords amended t h e B i l l and a l l t h e i r amendments were
a g r e e d t o by t h e Commons, t h e B i l l would be s u b m i t t e d f o r Royal Assent i n t h e normal
way and no q u e s t i o n of i n v o k i n g t h e P a r l i a m e n t Acts would a r i s e .
E q u a l l y , i f the
Lords amended t h e B i l l , t h e Commons r e j e c t e d some o r a l l of t h e s e amendments, and the
Lords t h e n a c c e p t e d t h e w i l l of t h e Commons, t h e B i l l would go forward f o r Royal
A s s e n t i n t h e normal way.
6.
The P a r l i a m e n t A c t s a r e so d r a f t e d t h a t , i f t h e Lords amend 3. B i l l sent up froB
t h e Commons i n t h e second s u c c e s s i v e S e s s i o n , t h e Commons may have an o p p o r t u n i t y to
c o n s i d e r w h e t h e r t o a c c e p t t h e Lords amendment(s).
The Acts a l s o contemplate t h a t ,
b e f o r e a B i l l i s s u b m i t t e d f o r t h e Royal Assent i n a c c o r d a n c e w i t h t h e i r p r o v i s i o n s ,
t h e Commons have t h e power t o " d i r e c t o t h e r w i s e " , i e t o d e c i d e n o t t o invoke t h e
Parliament Acts a f t e r a l l .
But i t does not a p p e a r t o be e s s e n t i a l t h a t t h e Common!"'
s h o u l d c o n s i d e r any Lords amendments, o r should c o n s i d e r w h e t h e r t o " d i r e c t otherwise
If,
1
by t h e end of t h e second S e s s i o n , t h e Lords have f a i l e d t o p a s s t h e B i l l i n the
form i n which i t was s e n t u p by t h e Commons, t h e B i l l can t h e n be s u b m i t t e d
Royal Assent r e g a r d l e s s of w h e t h e r t h e Commons have g i v e n t h e B i l l any
c o n s i d e r a t i o n s i n c e t h e completion of t h e Lords p r o c e e d i n g s .
for
further
I f such a s i t u a t i o n
were t o a r i s e i n t h e c a s e of t h e A i r c r a f t and S h i p b u i l d i n g I n d u s t r i e s B i l l ,
the
O p p o s i t i o n might put down a Motion i n v i t i n g t h e Commons t o d i r e c t t h a t t h e B i l l be
s u b m i t t e d f o r Royal A s s e n t .
tiO*
The Government would not have t o p r o v i d e time f o r such
Motion, and i t seems d o u b t f u l w h e t h e r i t could be t a k e n on a Supply Day.
3
If,
however, t h e O p p o s i t i o n were by any means a b l e t o s e c u r e a d e b a t e on such a Motion,
t h e Government would have t o s e c u r e t h e r e j e c t i o n of t h e Motion o r t h e B i l l would fal
1
7'
To cum u p , t h e P a r l i a m e n t A c t s p r o v i d e a means of e n s u r i n g t h a t t h e
Aircraft
Bad S h i p b u i l d i n g I n d u s t r i e s B i l l can he s u b m i t t e d f o r Royal Assent by t h e end of
t h i s S e s s i o n , e i t h e r i n i t s p r e s e n t form o r with any amendments a g r e e d t o by t h e
Commons, r e g a r d l e s s of any a c t i o n t a k e n by t h e L o r d s .
a f f e c t e d by h y b r i d i t y ;
This p o s i t i o n i s not
but t h e u s e of t h e P a r l i a m e n t Acts might p o s s i b l y r e q u i r e a
f u r t h e r s u c c e s s f u l v o t e i n t h e Commons a t t h e end of t h e S e s s i o n .
If,
a s p a r t of
some b a r g a i n , amendments t o t h e B i l l "were, t o be made by t h e Lords and a g r e e d t o bj
"the Commons, and t h e r e was no d i s p u t e between t h e two Houses, t h e q u e s t i o n of
invoking t h e P a r l i a m e n t Acts would not a r i s e , and t h e B i l l would be s u b m i t t e d
Royal Assent i n t h e u s u a l v:ay.
for