-2-
therefore have to be looked into in the light of these
criteria.
5
The Minister might then go on to say that in taking the industry into public ownership we will build on the expertise and traditional excellence of our yards. We intend, however, to improve the management structure and industrial relations by fostering a greater involvement of the workforce in the work of the yards. We hope thereby to ensure that orders are completed promptly and to the high standards we have always aimed to achieve.
Talks in the OECD/EEC
6
On the international side the Government is concerned
about the damaging effect of cut price competition, particularly from the Far East, which has resulted from the scarcity of orders. It is all too easy in a time of crisis to resort to unrealistically low prices and offers
of cheap credit in an effort to sell ships at any cost, but in the long run this does nothing to help the ship- building industry.
7
In the OECD we have been emphasising the importance of respecting international agreements on shipbuilding and of establishing realistic prices on the market, and I am glad to say that all Member States, including Japan, have accepted the importance of this. Japan's recent move to raise export prices by 5% is a step in the right direction although it may not in itself be enough.
8
Our policy in the EEC is to try to ensure that the consequences of the slump in world demand are equitably shared - and in particular that those who have expanded capacity in recent years should bear the consequences of their actions - and we are trying to reach agreement with Japan in the OECD on how this can be done in the least
danaging way.