HL Deb 29 March 1999 vol 599 cc14-5WA
The Earl of Caithness

asked Her Majesty's Government:

How much taxpayers' money was given to shipping in each of the last five years, both in cash and in real terms. [HL1553]

Lord Whitty

The Crew Relief Costs Scheme provides assistance towards the cost of flying British seafarers to and from ports outside the limited European trading area by contributing 20 per cent. of the scheduled economy airfare. Spend for the last five years on the scheme has been:

Current prices Constant (1995) prices
1998–991 £1.21m £1.11m
1997–98 £1.52m £1.43m
Current prices Constant (1995) prices
1996–97 £1.02m £0.98m
1995–96 £2.41m £2.39m
1994–95 £2.72m £2.78m
1 Up to and including January 1999.

The Government also provide support for the training of seafarers. The Government Assistance for Training (GAFT) Scheme (introduced in 1988) and the Development of Certified Seafarers (DOCS) Scheme (introduced in 1994) provided grants for British officer cadet and junior officer training for the first and second certificates of competency. These two schemes have now been superseded by the integrated Support for Maritime Training (SMarT) Scheme (introduced in 1998). The Government are committed to maintaining the real value of SMarT grants which will be increased next year by 2.75 per cent. based on the Treasury GDP deflator for the current financial year. The spend for the last five years on training support is as follows:

Current prices Constant (1995) prices
1998–991 £4.97m £4.55m
1997–98 £4.50m £4.22m
1996–97 £4.37m £4.20m
1995–96 £4.74m £4.70m
1994–95 £4.67m £4.77m
1 Projected spend.

In addition, there are other support measures which have a cost to the Exchequer. A reduction of 0.5 per cent. is made in employers' national insurance contributions in respect of seafarers on ships sailing outside Europe in recognition of the healthcare provided on board these ships. Foreign earnings deduction provides tax relief on earnings to seafarers working mainly overseas. The estimated cost to the Exchequer is £40 million per year. Roll-over tax relief helps shipowners to replace ageing tonnage by riding the cycle of market prices. The cost to the Exchequer varies considerably; £25 million per annum is an indicative average.