HC Deb 30 April 1940 vol 360 cc518-21
Mr. Shinwell

(by Private Notice) asked the Minister of Shipping whether he has any statement to make on the subject of rates of hire for requisitioned vessels?

Mr. R. S. Hudson

I am glad to say that agreement has been reached with the representatives of the deep sea tramp owners under which a scale of rates of hire has been fixed, based on 6s. per deadweight ton per month for steam vessels of 8,000 tons deadweight and above as from 1st March last. The corresponding rate for the previous period since the beginning of requisitioning is 5s. 7d. In each case an additional 1s. per ton will be paid in the case of motor vessels.

For deep sea liners the rates of hire will consist of two parts,

  1. (i) basic rates for passenger liners (which are divided into three classes for this purpose) and for cargo liners to cover average running costs, etc., and
  2. (ii) an allowance for depreciation and profit.
Subject to suitable modification (to be agreed upon) to meet cases where the control of ships has changed hands, this allowance will be at the rate of 10 per cent. per annum on the first cost of a ship if built in 1922 or later, or on the amount immediately before the war of its war risks insurance valuation for total loss if built before 1922. This percentage will allow 5 per cent. for return on capital after providing 5 per cent. for depreciation. Additional payments will be made for refrigerated cargo space in liners and also in respect of certain expenses which cannot suitably be included in the general rates. The cost of war risks insurance is borne by the Government. The rates will be reviewed from time to time in order that account may be taken of alterations in the level of costs and the effect of the rates on the financial position of the owners concerned.

The arrangements are necessarily somewhat complicated and I am circulating a more detailed statement in the Official Report. As soon as the outstanding points have been settled, a White Paper giving the full details of the arrangements will be presented to Parliament.

Mr. Shinwell

When does the right hon. Gentleman expect to be in a position to make a statement on the subject of replacement of lost and obsolete tonnage.

Mr. Hudson

I cannot give a date for that yet.

Mr. Shinwell

Is it clearly understood that the amount set aside for depreciation under this scheme is not the only provision that is to be made for replacement?

Mr. Hudson

The agreement regarding rates which I have sketchily outlined provides for reconsideration after a certain length of time. Obviously, all these questions can be reviewed in greater detail when we know what the effect has been of the working of the scheme during the preliminary period.

Following is the detailed statement:

Deep-sea Liners.

For deep-sea liners requisitioned under the terms of the Liner Requisition Scheme the rate will consist of two parts:
  1. (i) a basic rate to cover running costs, etc.;
  2. (ii) an allowance for depreciation and return on capital.
The basic rates are as follow:
  1. (a) for passenger liners having speeds of 18 knots and over, with white crews, 12s. 10d. per gross ton per month up to 29th February, 1940, and 13s. 7d. thereafter;
  2. (b) for passenger liners having speeds below 18 knots, for ships with white crows, 11s. 3d. per gross ton per month up to 29th February, 1940, and 12s. thereafter; for other ships in this class, 10s. 2d. per gross ton per month up to 29th February, 1940, and 10s. 5d. thereafter;
  3. (c) for cargo liners, 7s. 6d. per gross ton per month up to 29th February, 1940, with an additional 6d. thereafter for ships with white crews and 3d. for other ships.
Subject to suitable modification (to be agreed upon) to meet cases where the control of ships has changed hands, an allowance for depreciation and for return on capital will be made at the rate of 10 per cent. per annum on the first cost of a ship if built in 1922 or later, or, if built before 1922, on the amount immediately before the war of its war risks insurance valuation for total loss. This percentage will allow 5 per cent. for return on capital after providing 5 per cent. for depreciation.

Deep-sea Tramp Ships.

The rates for deep-sea tramps operating under charter conditions which leave the owners responsible for the manning and maintenance of the ships have been worked out in relation to a basic vessel of fair average capital value and are not divided into two parts as are those for deep-sea liners. From 1st March, 1940, the rate is 6s. per deadweight ton per month for steam vessels of 8,000 tons deadweight and over, with a scale of rates for vessels below that tonnage increasing to 8s. per deadweight ton per month for vessels of 5,000 tons deadweight. Before 1st March, 1940, the rates are lower by 5d. per deadweight ton per month. The relevant scales are annexed. In the case of motor vessels, 1s. extra per deadweight ton per month is payable. The increases introduced into the rates for liners and tramps as from 1st March, 1940, are due mainly to the increases in pay and bonus of ships crews which came into operation on that date.

Additional Payments.

Additional payments will be made for refrigerated cargo space on liners, and also in respect of certain expenses, e.g. increases in costs of marine insurance, which cannot suitably be included in the general rates.

Scales of rates of hire for deep sea tramp ships of 5,000 tons deadweight and over, requisitioned under the conditions of Charter Party T. 99A.

The scales of rates for steam tramps are as follow:
— Per deadweight ton per month.
Prior to 1st March, 1940. From1st March, 1940.
Vessels of— s. d. s. d.
8,000 tons deadweight and over. 5 7 6 0
7,750 tons deadweight and under 8,000. 5 8½ 6 1½
7,500 tons deadweight and under 7,750. 5 10 6 3
7,250 tons deadweight and under 7,500. 5 11½ 6 4½
7,000 tons deadweight and under 7,250. 6 1 6 6
6,750 tons deadweight and under 7,000. 6 3 6 8
6,500 tons deadweight and under 6,750. 6 5 6 10
6,250 tons deadweight and under 6,500. 6 7 7 0
6,000 tons deadweight and under 6,250. 6 9 7 2
5,750 tons deadweight and under 6,000. 6 11½ 7 4½
5,500 tons deadweight and under 5,750. 7 2 7 7
5,250 tons deadweight and under 5,500. 7 4½ 7 9½
5,000 tons deadweight and under 5,250. 7 7 8 0
Motor Vessels. Motor vessels will be paid in every case 1s. 0d. extra per deadweight ton per month on the rate applicable to a steam vessel of the same deadweight tonnage.
Adjustment of Payments at Divisions of the Scales. The payment made in respect of a vessel in any tonnage division of the above scale shall not be less than the maximum payment applicable to the next lower tonnage division of the scale.