asked the Secretary of State for Industry if he will make a statement on the future of the Intervention Fund for shipbuilding in Great Britain in light of his recent negotiations with Vicomte Davignon of the EEC; and when decisions are likely to be taken on the EEC Commissioner's proposal for a 40 per cent. reduction in EEC shipbuilding capacity within the next few years.

No negotiations have taken place with Viscount Davignon. My right hon. Friend the Minister of State has discussed the renewal of the Intervention Fund with Commissioner Vouel and consultations between my Department and the Commission are currently taking place.The Commission's proposals for the reorganisation of the Community shipbuilding industry are still being studied by member States.