HC Deb 09 May 1956 vol 552 cc1207-8
48. Mr. Awbery

asked the Minister of Transport and Civil Aviation if he is aware of the increasing transference of ships from British registration to flags of convenience in order to avoid taxation; and what steps are now being taken to stop this trend of transferring ships and companies to flags of advantage and convenience for the purpose of avoiding taxation and evading safety regulations.

Mr. Watkinson

No, Sir. I am not aware that British owners are transferring ships to flags of convenience for the purpose of avoiding taxation or of evading safety regulations.

Mr. Awbery

Is the Minister aware that flags of convenience are rapidly displacing the Red Ensign? Has the right hon. Gentleman read the recent statement by the Chairman of the Cunard Company in which he talks about the transfer to these flags in order to avoid certain obligations? Is the Minister aware that the position is now becoming so serious that I think it necessary for an inquiry to be made into the whole position of transfers to these flags?

Mr. Watkinson

I agree that in general the question of foreign lines serving under these flags of convenience is alarming, but in his Question the hon. Gentleman asked whether there was a transference by British shipowners to these flags of convenience, and the answer is, "No". I agree that the competitive position of the British shipping industry is being menaced by these flags of convenience and it is a question of great seriousness, to which I must give attention.

Sir L. Ropner

Would the Minister kindly repudiate completely any suggestion that ships are being sold to foreign flags for the purpose of avoiding safety regulations? Would he also confirm that in this highly competitive international trade the Red Ensign, being taxed more heavily than any other, is bound to disappear in the end?

Mr. Watkinson

I have already answered the first point that there are no sales being made, as I understand it, of British ships to avoid safety regulations. Regarding the second point, I have already said that I am giving close study to the competitive position of British shipping.