HL Deb 23 January 1984 vol 447 cc4-5

2.44 p.m.

Lord Gridley

My Lords, I beg leave to ask the Question standing in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government what percentage of Britain's gross shipping income was derived from "crosstrading" in 1982.

Lord Lucas of Chilworth

My Lords, crosstrade freight revenue is provisionally estimated to have accounted for 46 per cent. of total revenue from international activities of the United Kingdom shipping industry in 1982 or 67 per cent. of international freight revenues. Charter receipts and passenger revenues make up the remainder of the total.

Lord Gridley

My Lords, I thank my noble friend the Minister for that Answer. Will he confirm that over two-thirds of international trading arises from crosstrading and that in the circumstances this position is reasonably satisfactory?

Lord Lucas of Chilworth

My Lords, the figure of£1,541 million of United Kingdom shipping earnings on crosstrades compares with the total of £3,335 million of total revenue from international activities. I confirm that the proportions are satisfactory: but it is not without a considerable amount of endeavour by the shippers, the shipping lines and, indeed, the Government that this figure is being maintained.

Lord Underhill

My Lords, does the Minister recall that in our excellent debate on shipping competition it was made clear—and the Government department concerned agreed—that the beneficial owners of about 50 per cent. of United Kingdom registered shipping are foreign companies? Are the figures that he has given net figures, or do they allow for any of those receipts which are transferred out of this country? Also, does he not agree that crosstrading is imperilled by flags of convenience and discriminatory action by other countries? May I ask what the Government propose to do to avoid that?

Lord Lucas of Chilworth

My Lords, the Government are doing a great deal in a number of international fora to fight for the rights of British lines to continue their traditional crosstrading activities. It is the Government's policy, in the interests of the British shipping industry itself, British exporters and consumers alike, that an open competitive régime in world shipping should be maintained. It is for this reason that we are party to the current discussions of the United Nations Conference on Trade and Development and, in particular, to the EC agreement to work through the Consultative Shipping Group to ensure that there is freedom of competition for our ships and those of our Community partners.

Lord Greenway

My Lords, can the noble Lord give the House any comparable figures concerning Soviet crosstrading activities?

Lord Lucas of Chilworth

My Lords, so far as Russian crosstrading is concerned, I can tell the noble Lord, Lord Greenway, that about 15 per cent. of the trade of Soviet vessels is derived from trade between non-Soviet ports. In recent years, Russian vessels have carried between 1 and 2 per cent. of the value of all British seaborne trade.

Lord Underhill

My Lords, I am sorry to press the Minister further. He answered the second part of my question on the Government's action on crosstrading and discrimination, but not the first part which was that it is generally agreed that the beneficial owners of 50 per cent. of the United Kingdom registered shipping fleet are foreign companies. Therefore, are the figures that he has given to the noble Lord, Lord Gridley, net, after allowing for money transferred out of this country from those receipts, or are they gross figures?

Lord Lucas of Chilworth

My Lords, I very much regret that I cannot tell the noble Lord whether the figures are gross or net; but I will make inquiries and ensure that he is informed. It is not true that 50 per cent. of United Kingdom shipping is foreign owned. It is a smaller amount than that.