“The first Ark Royal was built at Blyth, but it is with the present that we are mainly concerned tonight. In the first week in August of this year, the yard was on annual holiday and the editor of the local paper, the Blyth News, on 3rd August, was telephoned and asked to go along to the yard for what was described as an item of news. A receiver had moved in that morning and taken over the running of the yard. Needless to say the town was stunned. Workers on holiday received the news from newspaper reports, and many returned from their holidays to receive the news in envelopes marked Hong Kong.

There is not the time to describe the feeling of desolation that is experienced at a time like this. As anybody in the House will appreciate, it is a matter of great sadness to watch a great industry die. The method of announcing the closure was criminal. No other word could fit the act. Men who had given a lifetime of service to the Blyth Company, in good times and bad, were entitled to treatment better than this.”

“I assure hon. Members, and my hon. Friend the Member for Blyth in particular, that the Government are not indifferent to the situation created by the closure of the shipyard in Blyth. We appreciate the worry and distress this closure has brought to those employed in the yard and to their families and the importance of ensuring that there should be alternative employment for those put out of work by the closure.

However, I cannot accept the simple proposition that the shipyard should be kept open at all costs. The company appears to have failed because, like many other firms in the industry, it had to take orders at fixed prices at a time when costs, including the cost of labour, were rising. Ships constructed have proved to be unprofitable and the yard had for some time been operating at a loss.

The experience of this yard is not unique in the industry. It was this and similar problems which led us to set up the Geddes Committee.

But things are not as black as this might suggest. The great shipbuilding concentration on the Tyne is not too far away, and skilled shipbuilding labour is scarce there. Alternative employment should be available on the Tyne for many of the Blyth shipbuilding workers. Indeed, of the 470 employees of the Blyth shipyard who have so far been declared redundant, over 80 per cent. have already found alternative employment, and many of them on the Tyne.”

“No wonder the Japanese could build ships cheaper than us. They did not have to paint the whole town whatever colour the latest ship was being done in. Almost every house in Blyth had a door/shed the same colour as the latest ship… The Japanese blacksmiths did not have to make wrought iron gates for the foreman’s driveways or basketball hoops and fittings for every gable end in Blyth… All charged to the cost of the ship.”

“At the beginning of the twentieth century, British shipyards had built 55 per cent of the world’s new tonnage; in 1960 the figure was only 15 per cent and continued to drop. Northern yards did not even hold their share of the shrunken British total, despite some success stories… Shipbuilding expansion overseas would in any event have posed problems for British yards; the catastrophic scale of decline reflected failures by both management and labour.”