Shipbuilding Industry Act 1967
| Jurisdiction | UK Non-devolved |
| Citation | 1967 c. 40 |
| Year | 1967 |
Shipbuilding IndustryAct 1967
1967 CHAPTER 40
An Act to provide for the establishment of a public board with the function of promoting the ability of the shipbuilding industry in the United Kingdom to compete in world markets; to enable the board to give financial assistance to persons carrying on shipbuilding undertakings and marine engine manufacturing undertakings; to enable the Minister of Technology to give guarantees in connection with the construction of ships in shipyards situated in the United Kingdom and the equipment of ships constructed in such shipyards; and for connected purposes.
[28th June 1967]
Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
The Shipbuilding Industry Board
1 Establishment of Shipbuilding Industry Board.
(1) For the purpose of promoting the ability of the shipbuilding industry in the United Kingdom to compete in world markets there shall be a body to be called the Shipbuilding Industry Board (in this Act referred to as ‘the Board’) having the functions conferred on it by this Act.
(2) The Board shall consist of a chairman and not less than two nor more than four other members appointed by the Minister of Technology (in this Act referred to as ‘the Minister’).
(3) The powers conferred on the Board by the subsequent provisions of this Act shall be exercisable for the purpose mentioned in subsection (1) of this section, and the Board shall, in addition, have power to carry on for that purpose any activity which it considers can be advantageously carried on by it.
(4) The Minister may, after consultation with the Board, give to the Board directions of a general character as to the exercise of its functions, and the Board shall comply with any such directions.
(5) The Schedule to this Act shall have effect in relation to the Board and to its members and staff.
Financial assistance by Board
2 Grants for advice on grouping schemes.
(1) Subject to the provisions of this section, the Board may make to any person carrying on a shipbuilding undertaking or a main engine manufacturing undertaking a grant by way of reimbursement in whole or in part of any fees payable by that person to a consultant for the preparation of a report in connection with any proposed grouping scheme affecting that undertaking.
(2) This section applies to any report obtained whether before or after the commencement of this Act in pursuance of instructions given after 24th March 1966.
(3) Grants made under this section shall not together exceed 150,000 and no such grant shall be made after 31st March 1968.
3 Grants to assist reorganisation of resources.
(1) If it appears to the Board that a person carrying on—
(a ) a shipbuilding undertaking in relation to which a grouping scheme has taken effect at any time after 24th March 1966; or
(b ) a main engine manufacturing undertaking,
is putting, or has put, into effect a reorganisation of the resources used by him for the purpose of carrying on that undertaking and that the reorganisation is likely to lead, or has led, to increased efficiency in the use of those resources for that purpose, the Board may, subject to the provisions of this section, make grants to that person—
(i) in respect of any expenses incurred by him during the period between the commencement of this Act and the end of 1970 in connection with the reorganisation; and
(ii) in respect of his inability to use those resources to the best advantage at any time during that period when the reorganisation is or was in progress.
(2) Any grant under this section shall require the approval of the Minister.
(3) Grants made under this section shall not together exceed 5 million.
4 Loans.
(1) Subject to the provisions of this section, the Board may make a loan to any person to enable him to acquire shares in a company carrying on a shipbuilding undertaking or a main engine manufacturing undertaking if the shares are to be acquires in connection with a grouping scheme.
(2) Subject to the provisions of this section, the Board may make to any person carrying on a shipbuilding undertaking—
(a ) if a grouping scheme has taken effect in relation to that undertaking at any time after 24th March 1966, a loan for the purposes of that undertaking generally or for such purposes of that undertaking as the Board thinks fit;
(b ) whether or not such a scheme has taken effect in relation to that undertaking, a loan for—
(i) the provision or improvement of buildings, structures, works, plant or equipment used or to be used by him for the purpose of carrying on that undertaking;
(ii) the re-training of workers for employment by him for that purpose.
(3) Subject to the provisions of this section, the Board may make to any person carrying on a main engine manufacturing undertaking a loan for the purposes of that undertaking generally or for such purposes of that undertaking as the Board thinks fit—
(a ) if a grouping scheme has taken effect in relation to that undertaking at any time after 24th March 1966; or
(b ) if it appears to the Board that the person carrying on that undertaking—
(i) is putting into effect a reorganisation of the resources used by him for the purpose of carrying on that undertaking; or
(ii) has since the date of the commencement of this Act put into effect such a reorganisation as aforesaid (including a reorganisation begun but not completed before that date),
and that the reorganisation is likely to lead, or has led, to increased efficiency in the use of those resources for that purpose.
(4) Any number of loans may be made under this section to the same person.
(5) Any loan under this section shall require the approval of the Minister.
(6) Any loan under this section shall be made on such terms and conditions as to repayment and interest as may, with the approval of the Minister and the Treasury, be agreed upon between the Board and the borrower, and shall be made on such other terms and conditions as may with the approval of the Minister be so agreed upon.
(7) Loans made under this section shall not together exceed 3212 million.
5 Relief for interest on loans.
(1) The Board may with the approval of the Minister give relief in respect of the whole or any part of the interest payable by any person on a loan made under section 4 of this Act, being interest in respect of any period before the end of 1970.
(2) The Board shall give effect to any decision to give relief of any amount under this section to any person by making a grant to him of that amount.
6 Assistance by acquisition of shares.
(1) Where a person to whom a loan may be made by the Board for any purpose under section 4 of this Act is a company incorporated under the law of any part of the United Kingdom—
(a ) the terms on which any such loan is made may provide for the indebtedness to the Board to be discharged by the issue of shares in the company; and
(b ) the Board may, instead of or as well as making a loan under that section, provide the company with funds for that purpose by subscribing for shares in the company.
(2) Any exercise by the Board of its powers under subsection (1)(b ) of this section shall require the approval of the Minister, and any sum applied by the Board in the exercise of those powers shall be taken into account for the purposes of subsection (7) of section 4 of this Act as if it were a loan made under that section.
(3) The Board shall not dispose of any shares acquired by it by virtue of this section except with the approval of the Minister.
Guarantees by Minister
7 Guarantees in connection with shipbuilding.
(1) Subject to the provisions of this section, the Minister may, with the consent of the Treasury, guarantee the payment by any person who is an individual resident in, or a company incorporated under the law of any part of, the United Kingdom, any of the Channel Islands or the Isle of Man of any sum payable by that person in respect of principal or interest under arrangements (whether by way of loan or otherwise) entered into by that person for the purpose of financing—
(a ) the construction to the order of that person in a shipyard situated in the United Kingdom of a ship of not less than one hundred tons gross tonnage; and
(b ) the equipment of that ship.
(2) The foregoing subsection applies to any order placed after 15th February 1967.
(3) No guarantee shall be given under this section except on the recommendation of the Board, and the Board shall not make such a recommendation unless it appears to the Board—
(a ) that the person carrying on the shipbuilding undertaking comprising the shipyard in question—
(i) has since the date of the commencement of this Act put into effect a reorganisation of the resources used by him for the purpose of carrying on that undertaking (including a reorganisation begun but not completed before that date); or
(ii) is making satisfactory progress in the preparation of plans for, or in putting into effect, such a reorganisation as aforesaid,
being a reorganisation which has led, or is likely to lead, to increased efficiency in the use of those resources for that purpose; and
(b ) that the carrying out of the order in question in that shipyard is consistent with, or will contribute to, that increased efficiency and will secure that use is made of resources which are then or will shortly be available and are otherwise unlikely to be used.
(4) Any guarantee...
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