§ As amended (in the Standing Committee), considered
10.12 pm§ The Under-Secretary of State for Trade (Mr. Reginald Eyre)I beg to move, That the Bill be now read the Third time.
As explained at earlier stages, the Bill is concerned with changing mechanisms rather than with introducing new policies. It deals with the way in which financial limits to legal liability are expressed in two United Kingdom Acts in the maritime field and has the object of replacing the now obsolete gold francs as the unit of account by the more modern special drawing right of the International Monetary Fund. It will enable the United Kingdom to ratify two protocols to international conventions, the wider international adoption of which will bring considerable benefit to interests in this country through greater international harmonisation and removal of commercial distortions.
Although focused on one issue only, the importance of the Bill should not be underestimated. There is very deep concern internationally on the question of the interpretation of gold-based monetary units. The practice as regards conversion into national currency unfortunately varies from country to country. Based on the free market value of gold, a British shipowner or insurer abroad may be faced with liability amounts in some cases up to 12 or even 15 times higher than his foreign counterpart would be subject to in this country. Differences of that order of magnitude represent a very significant commercial disadvantage to our national interests. That is why it is important that the internationally agreed procedures, which we already follow, should be implemented as widely as possible and as quickly as possible. It is for this reason that the United Kingdom wishes to set a lead and thereby encourage others to follow suit. There is growing international awareness of the problem, and it is right that we should help to maintain the momentum.
It is clear that the Bill is widely accepted as a modest but necessary measure of some importance, and I am grateful for the continued support that it has received.
§ Mr. Clinton Davis (Hackney, Central)As the Bill simply follows the Labour Government's policy, I fully support it. It is to be commended on that basis. I recommend it as a precedent which the Minister should follow in the future.
§ Question put and agreed to
§ Bill accordingly read the Third time and passed, with amendments