HC Deb 15 April 1999 vol 329 cc366-7
13. Mr. Barry Gardiner (Brent, North)

What remit he has given to Lord Alexander's investigation of the fiscal regime for British shipping. [79457]

The Paymaster General (Dawn Primarolo)

Lord Alexander has agreed to conduct an independent inquiry into the case for, and design of, a lower rate ring-fenced tonnage-based tax and additional enhanced training incentives for the shipping industry, taking account of the Government's objectives for shipping and the national and international competitiveness issues involved. The inquiry is to conclude as soon as is practicable.

Mr. Gardiner

I am grateful to my hon. Friend for that reply. What assessment have the Government made of the possible revenue implications for the Exchequer of a tonnage-based tax such as that in which the Dutch Government are engaged, which has resulted in a 37 per cent. increase in Dutch-flag ships, a 23 per cent. increase in employment in their shipping industry and a 19 per cent. increase in their gross domestic product? Will she confirm that the assessments will be made available to Lord Alexander, so that he can set them alongside the success of the Dutch scheme?

Dawn Primarolo

Those are precisely the issues that Lord Alexander will be considering in studying tonnage-based tax regimes in other European Union member states and, indeed, elsewhere. He will be supported by the Treasury in ensuring that the figures are detailed and correct, and will be making his recommendations on precisely such information.