HL Deb 14 June 1985 vol 464 cc1486-7

11.39 a.m.

Lord Davies of Leek

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 whether they will remove from United Kingdom export companies the liability to pay the whole cost of shipping lights in this country by adopting the continental practice of meeting these costs out of general taxation.

Lord Brabazon of Tara

My Lords, No. The Government consider that since the costs of the lighthouse services are incurred in meeting the needs of the marine community, they should be paid by that community.

Lord Davies of Leek

My Lords, that was a draconian Answer. Does the noble Lord not realise that this is a burden placed upon the exporter and limiting his competitive punch vis-à-vis his European competitors? Will he not consider this point again? Does he not see that it would be better if general taxation took this burden upon itself and so increased the chances of Britain's exporters?

Lord Brabazon of Tara

My Lords, the noble Lord's question is extremely timely. My right honourable friend published yesterday a report on the structure of light dues that has been prepared by Arthur Andersen and Co., consultant accountants. The Government are concerned that the burden of light dues should be shared equitably. One of the purposes of the Arthur Andersen study was to look at changes that might be needed in a long-established system reflecting the dramatic changes that the marine world has seen in recent years. But the Government, in commissioning the study, specifically ruled out the possibility of the costs of the lighthouse services being met in whole or in part from general taxation.

Lord Davies of Leek

My Lords, I thank the noble Lord for quite a cogent reply. Does it mean that the matter is still being looked at and that there is the possibility of some changes being made?

Lord Brabazon of Tara

My Lords, as I have said. We rule out the possibility of costs being met from general taxation. However, we are looking forward to responses from interested parties to the report published yesterday. We shall then see in what way the system should be restructured.

Lord Cledwyn of Penrhos

My Lords, the noble Lord will be aware of the concern felt throughout the country about the decline of the British merchant fleet. He has referred to the very important report published yesterday by his right honourable friend. Can he say specifically whether consultations on this report will take place with the shipping companies? Have the Government made any assessment of the additional assistance that might accrue to British shipping companies compared with their continental competitors if assistance of the kind referred to by my noble friend was given to the companies at the present time?

Lord Brabazon of Tara

My Lords, the report, as I say, was published yesterday and copies are, or will be shortly, available in the Library of your Lordships' House. We are awaiting responses from the industry. We have asked for these to be in by September. Obviously, we shall be looking at the whole matter of how these charges should be structured. Regarding the decline in the British fleet, the noble Lord, Lord Davies, has another Question down for next Tuesday specifically on this question. If I may, I shall leave it until then.