NATIONAL INSURANCE (MARINERS) (Hansard, 13 May 1963)

§ The Joint Parliamentary Secretary to the Ministry of Pensions and National Insurance (Lieut.-Commander S.L.C. Maydon)
I beg to move, That the National Insurance (Mariners) Amendment Regulations, 1963, a draft of which was laid before this House on 23rd April, be approved. The purpose of the Regulations is to amend the National Insurance (Mariners) Regulations, 1948, in order to take account of the increase in the upper earnings limit for graduated contributions from £15 to £18 a week, and in order, also, to take account of some of the other changes made by the National Insurance Act, 1963. The Regulations extend the scales of seamen's earnings which will count for payment of graduated contributions, but provide that the existing scales will still apply in respect of ships which are at sea on 1st June of this year and return to this country within the following three months. This transitional arrangement will reduce the amount of clerical work falling on a ship's master at the end of a voyage.
My right hon. Friend has consulted the National Maritime Board, which represents both sides of the shipping industry, and the Board has expressed its agreement with the changes proposed in the Regulations.

§ Mr. G. R. Mitchison (Kettering)
These Regulations have been approved by both sides of the shipping industry, and I have not much comment to make on them. I notice that the shipowners are getting a rebate in their contributions. That rebate, as I understand, derives from a practice which must have existed for many years—certainly long before this kind of thing arose—namely, the practice of paying seamen at the end of a voyage and not at weekly or monthly intervals. Will the hon. and gallant Gentleman explain how it comes about that that rebate is allowed now and has not been allowed before? Subject to his not telling us anything too dreadful about it, I find it difficult to object to the Regulations.

§ Lieut.-Commander Maydon
I must correct the hon. and learned Member.
1088 The reason for the rebate is not as he has stated. It derives from the fact that a foreign-going seaman—that is to say, a seaman in a foreign-going ship—may go sick while on board; the ship may be anywhere at sea, or at a foreign port anywhere throughout the wide world. Rather than put him ashore, he is retained on board and remains on full pay while he is sick. Therefore, sickness benefit is not paid to the man concerned, and his employers continue to pay him his full rate of pay. They therefore earn this rebate.

§ Mr. Mitchison
I stand corrected. Perhaps the hon. and gallant Gentleman can tell us why this has only now led to a change. It must have been the case for many years past.

§ Lieut.-Commander Maydon
There has been no change. The only change in this respect is that the amount of the rebate which the employers are, so to speak, earning, is being increased because the amount of sickness benefit is being increased. Therefore, the rebate is increased in proportion.