HC Deb 23 November 1954 vol 533 cc1024-5
5. Mr. Grimond

asked the Chancellor of the Exchequer what steps he has taken to satisfy himself that the new investment allowances have given sufficient assistance to the shipping and shipbuilding industries to maintain the British Merchant Marine in the face of present taxation.

Mr. R. A. Butler

The question whether adequate finance will be available in the future for the maintenance of the British Merchant Marine must depend on many factors, but the investment allowances should be of substantial help.

Mr. Grimond

Is it not the case that, in spite of investment allowances, the British Merchant Marine is getting older, and also forms a smaller proportion of world tonnage? Does the Chancellor regard this as an inevitable tendency, or is it due to the failure of shipping companies to accumulate sufficient reserves or to invest?

Mr. Butler

As we know, the shipping industry has had quite a difficult time, but since last April the British Merchant Marine has increased by 330,000 gross tons. While that increase cannot be attributed to one cause, it is a sign that things are developing, although there are difficulties in the long-term future.

Sir L. Ropner

Is my right hon. Friend aware that so long as taxation upon British shipping companies remains at a higher level than that upon foreign competitors, those competitors are bound to establish a lead?

Mr. Butler

That is why the shipping industry so much welcomes provision for relief from taxation, especially that contained in my last Budget.

Mr. Shinwell

Is not the right hon. Gentleman aware that the increase in the amount of British tonnage in the past year, to which he has referred, is largely due to increasing tanker tonnage, and not to tramp and medium cargo-ship tonnage? Will he give consideration to the whole position of the British Merchant Marine, in view of what may happen in the next few years?

Mr. Butler

The answer to the latter part of that supplementary question is, "Yes, Sir," and the answer to the first part is that I believe it largely reflects the increase in tanker tonnage.