HC Deb 26 November 1959 vol 614 cc550-1
33. Mr. Shinwell

asked the Chancellor of the Exchequer whether he is aware that the allowances provided in previous Budgets to British shipping interests have proved insufficient to place British shipping in a favourable competitive position vis-à-vis the mercantile marine of other nations; and what further financial assistance to the industry he contemplates.

Sir E. Boyle

The tax allowances referred to are, of course, only one factor affecting the competitive position of British shipping, and my right hon. Friend believes them to have been of great assistance. As to the second part of the Question, I have no statement to make. I can, however, assure the right hon. Member that the Government are well aware of the general difficulties of the shipping industry and are watching the position closely.

Mr. Shinwell

Is the right hon. Gentleman aware that I am fortified in my conviction that something should be done for British shipping because of the demands that have been made from his side of the House this afternoon for further subsidies for agriculture? Is the Minister further aware that there is now a serious decline in the British Mercantile Marine, and that unless something is done about it we shall find ourselves in an even more unfavourable position? Can we have an assurance that the Government are regarding this matter with anxiety and with some gravity?

Sir E. Boyle

The causes of the problem are world-wide, and one important piece of help the Government can give is to pursue policies designed to promote an increase in world trade as a whole—[HON. MEMBERS: "Oh."]—which they are certainly doing. I hope the right hon. Gentleman will not forget the considerable help given through the 40 per cent. investment allowance, and will remember that these investment allowances persisted even when suspended for other types of industry.

Mr. Shinwell

What is the Minister saying? Is he not aware that the British shipping industry does not regard the investment allowance as being even a partial solution of the problem? Unless the Government can bring pressure to bear on the United States of America to withdraw the discrimination against British shipping, the Government must render some financial assistance.

Sir E. Boyle

That question raises rather wider issues. I only referred to the investment allowance because it comes within my sphere of responsibility. Certainly the shipping industry did not consider that unimportant at the time it was introduced.