HC Deb 22 February 1988 vol 128 cc8-9
5. Mr. Wallace

To ask the Secretary of State for Transport what representations he has received concerning the future of the British merchant fleet.

Mr. Channon

A policy document from the General Council of British Shipping, a leaflet from the National Union of Marine, Aviation and Shipping Transport Officers, and about 45 letters from members of the public.

Mr. Wallace

Will the Minister accept that in spite of the admittedly helpful measures in the Merchant Shipping Bill, which is passing through the House, there is still considerable anxiety about the state of our merchant shipping, not only because of the dramatic decline in merchant tonnage, but because over the past 10 years the pay rates for seafarers have gone down considerably in comparison with rates paid in comparable occupations on land? With the Budget looming, has the Secretary of State made, or does he intend to make, representations to the Chancellor of the Exchequer about having special tax arrangements to encourage the replacement of ships or the undertaking of heavy repairs? Will the Secretary of State also promote special tax and social security arrangements for seafarers, as is done in other EEC countries?

Mr. Channon

As the hon. Gentleman knows, taxation is a matter for my right hon. Friend the Chancellor of the Exchequer, not for me. I am grateful for what the hon. Gentleman said about the Merchant Shipping Bill measures. Yes, the fleet is slimmer, but it is more efficient, and company success should not necessarily be judged by the number of ships. The important point is to improve efficiency on sea and on land and open up new trade.

Mr. Irvine

When did my right hon. Friend last receive representations about the size of the merchant fleet from the Ministry of Defence, and what was the nature of those representations?

Mr. Channon

All letters from the Ministry of Defence are confidential, but I cannot recall one on that issue. I have already answered the question raised by the hon. Member for Orkney and Shetland (Mr. Wallace). If my hon. Friend is asking for taxation measures, I must point out that that is entirely a matter for my right hon. Friend the Chancellor of the Exchequer.