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to justify the charter rate which would be necessary to cover the financing costs of a new ships.
BF have expressed an
c) North Sea Oil Operators. interest in meeting the Hong Kong mission, and a repre- sentative will attend the reception given by the Secretary of State for Trade. However BP do not see much scope for
new business in the next two or three years as they have a surplus of vessels. It is also unlikely that the BNOC will have any requirements for ships in the near future.
The Secretary of State has, however, been advised to write
to the Secretary of State for Energy asking whether there are likely to be any opportunities in the safety field. BP expressed the view that to operate North Sea vessels in the offshore supply/safety field, specialised knowledge
was required and they would not therefore be suitable for
charter deals.
The Shipbuilding Intervention Fund
10 The Shipbuilding Intervention Fund was introduced in February 1977 in order to provide financial assistance
to British shipyards which would enable them to obtain orders during a period of contraction. A sum of £65 million had been set aside for this purpose. The Fund is to be operated selectively, so as to obtain maximum benefit at least cost. Applications from foreign shipowners in respect of potential orders with British shipyards will be eligible for consideration, although orders from UK shipowners will have priority in use of the fund. However, this could prove academic, in view of the scarcity of orders.
11
The level of assistance which can be provided will be a matter for individual negotiation. It will depend on the circumstances of the yard, the desirability of the order etc and will be the minimum required to obtain acceptance of the order. In practice, it is hoped to restrict the level of subvention to under 20% of the UK
price.
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