§ 4. Mr. LAWSONasked the President of the Board of Trade if his attention has been called to cases in which ship- 205 owning firms in this country are placing their ships under Foreign flags for the purpose of evading income tax; and whether he will introduce legislation to make such transfers illegal?
§ Sir P. CUNLIFFE-LISTERNo specific cases of the nature mentioned have been brought to my notice, and it is not proposed to introduce legislation on this matter.
§ Mr. LAWSONIs the right hon. Gentleman aware that a shipowner made a statement last week that no less than 10 firms in Newcastle had transferred to another flag, because crews were cheaper and taxation could be avoided; and is he aware that that same shipowner advised his own company to do likewise?
§ Sir P. CUNLIFFE-LISTERThere is a question next on the Order Paper which asks for the number of ships that have been transferred. When I have read that answer, it will be seen that the number transferred last year is considerably less than the average of previous years.
§ Mr. HAYESCan we have an assurance which will contradict the statement of the Seed Shipping Company, that foreign seamen are 25 per cent. better than British seamen?
§ Sir P. CUNLIFFE-LISTERNo, Sir; I am sure that, if any such statement were made, it needs no contradiction at all, because it is transparently untrue. May I say, also, that very often, while you may get a cheaper but not as efficient a crew, other charges like insurance may be increased, and I am sure that the bulk of British shipowners much prefer to sail their ships under the British flag than under any other.
§ Mr. LAWSONIf I send the right hon. Gentleman this statement, will he investigate the matter and find out what the truth is, as a certain shipowner repudiated the statement and said that there was no truth in it; is it not, therefore, well to have it investigated?
§ Sir P. CUNLIFFE-LISTERI do not think that I can investigate a statement made by some particular shipowner. He is entitled to his opinion, and we are entitled to ours, and I say emphatically that the opinion of the majority of British shipowners is that they are best under the British flag.
Lieut.-Colonel LAMBERT WARDWould it not be practically impossible to devise legislation effectively to prevent the transfer of British ships to foreign flags?
§ Sir P. CUNLIFFE-LISTERYes, I think that it would be impracticable, unworkable, and undesirable.
§ Mr. HARRISDid not a large American fleet transfer to English hands recently?
§ Sir P. CUNLIFFE-LISTERYes, that is quite true, and in considering this matter one should bear in mind the great new ships which are transferred to the British flag in contra-distinction to what are rather old ships which find their way to other flags.
§ Mr. MACQUISTENIs it not possible, in view of the first part of the question, that the correct remedy is to lower the Income Tax?
§ 5. Lieut.-Commander KENWORTHYasked the President of the Board of Trade how many British ships have been transferred to foreign flags during the last 12 months; and whether he has any information as to the proposed transference of the whole of the shipping of the Seed Shipping Company, of Newcastle, to the Latvian flag?
§ Sir P. CUNLIFFE-LISTERDuring the 12 months ended 31st May, 1928, the registers of 272 vessels were reported as having been closed in this country on account of transfer of vessel to a foreign flag. This number is considerably below the average for the preceding five years. Statements have appeared in the Press regarding a proposed transference of the three vessels owned by the Seed Shipping Company to the Latvian flag, but I have no official information on the subject.
§ Lieut.-Commander KENWORTHYWill the right hon. Gentleman take the opportunity of repudiating the statement of the managing director of the Seed Shipping Company, in which he made strictures on British seamen, and compared them unfavourably with foreign seamen?
§ Sir P. CUNLIFFE-LISTERI have already said, more than once at Question time, what my opinion and the opinion of the whole House is as to the outstanding merits of British seamen.
§ Mr. LAWSONIs the right hon. Gentleman aware that this gentleman made some scathing criticisms of British seamen?
§ Sir P. CUNLIFFE-LISTERI hold no brief for him, and I emphatically repudiate any adverse criticisms that have been made by anybody, whatever his nationality, on either British seamen or British shipping.
§ Mr. HAYESWill the right hon. Gentleman have these remarks brought directly to the notice of the Seed Shipping Company?
§ Sir P. CUNLIFFE-LISTERThey can read what has been said, and I see no reason to advertise this particular company.
§ Lieut.-Commander KENWORTHYHas the right hon. Gentleman also seen the excuse made by this company that they are at present ruled by trade unions, and is he in a position to repudiate this libel also, and to say that the Seamen's Union have always worked very fairly in the interests of the men, and not unfairly against the shipowners?
§ Sir P. CUNLIFFE-LISTERI have not read the observations of this gentleman, and, from what I have heard, I do not think that I shall waste any time in reading them.