HC Deb 21 May 1973 vol 857 cc17-8
19. Mr. Wingfield Digby

asked the Secretary of State for Trade and Industry what information he has as to the working of non-tariff barriers to trade such as fiscal incentives given to United States shippers using domestic international sales corporations and as to the extent to which this is resulting in loss of foreign exchange to British shipping.

Mr. Onslow

The fiscal incentives of the American DISC system could reduce British shipping earnings by encouraging preferential use of American ships. It is difficult to quantify their effect, nor is it easy to assess the effect on British shipping of other discriminatory practices applying elsewhere in the world. We keep in close touch with the industry about this situation.

Mr. Wingfield Digby

Are not these so-called "DISCS" a serious threat not only to our seaborne but to our airborne freight? Is it not a bad example to other, less affluent exporting nations? Will the Government consider retaliatory measures?

Mr. Onslow

It is too much to ask that the Government should commit themselves to retaliatory measures, but I assure my hon. Friend that we have on several occasions made representations to the United States Government about the effect of their measures.

Mr. Mason

I am obliged for that reply. This type of non-tariff barrier DISC is not only affecting the foreign earnings of our shipping but is frustrating the efforts of exporters who want to get into the United States market, especially in major products. I hope that the Government will keep up their pressure on the United States.

Mr. Onslow

It does not militate simply against British shipping interests. The EEC Commission raised the question at discussions in the GATT last year and there will be an opportunity to raise the matter again in the GATT Council at the end of this month.

Dame Irene Ward

This is not simply a question of providing us with knowledge. My hon. Friend's answer does not say what action will be taken. I am rather keen on action. I have heard this argument for a long time and I should like to see a little more action.

Mr. Onslow

I know my hon. Friend's desire for action, but my hon. Friend the Member for Dorset, West (Mr. Wingfield Digby) asked only for information.

Dame Irene Ward

I am asking for action.