MERCHANT SHIPPING (LIABILITY OF SHIPOWNERS) BILL. (Hansard, 16 May 1898)

§ THE MARQUESS OF LONDONDERRY (Earl VANE)
My Lords, I rise to move the Second Reading of the Measure that stands in my name. In doing so, I have every confidence that the Measure will receive your Lordships' universal approval. I am confident that it will receive your Lordships' approval on two grounds. In the first place, because I have received intimation from my noble Friend below me who represents the Board of Trade in your Lordships' House, that this Measure will not be opposed by them; and, secondly, because this Measure passed through all the stages in another place, not only without criticism, but without discussion of any kind or sort. Amongst the various stages through which the Bill passed was the Grand Committee stage. The Grand Committee comprised the representatives of all political views of the great shipping industries of Great Britain and Ireland; and when I tell your Lordships that this Measure emerged from that Grand Committee uncriticised, and, consequently, unaltered, I think you will agree that I am justified in saying that I am confident the Bill will receive your Lordships' sanction. Under these circumstances, I have no doubt your Lordships will justly think it is unnecessary for me to explain to you the object and provisions of this Bill. But I have always felt, in introducing a Bill into this House, that it is due to your Lordships that the mover of a Measure of any importance at all should, at any rate, very briefly, explain to your Lordships what are the objects and provisions of the Measure. I shall, therefore, in a very few words, explain to your Lordships the objects and provisions of the Bill, the Second Reading of which I am now moving. The main object of the Measure is to remove an injustice to the shipowning classes under which, at the present moment, they labour, but which hardship is not shared by their foreign 1350 competitors. The object of the Bill is to limit the liability of shipowners in respect of damages which may occur without their fault. In order to explain this, I must ask your Lordships to call to your memories the Merchant Shipping Act, 1894, which limits the liability of the owners of a ship, British or foreign, in respect of damages and occurrences happening or taking place without their actual fault. In section 508 of that Act there occur the words— This right is not to extend to any British ship which is not recognised as a British ship within the meaning of this Act. And in section 2 it is stated that— The ship required to be registered under the Act is not to be recognised as a British ship until it is so registered. Consequently, as your Lordships will see, the joint effect of these sections is that owners of unregistered British ships cannot avail themselves of the statutory right of limitation of liability. I daresay your Lordships may recollect a decision that was given by Sir Richard Phillimore in 1878, to the effect that— A vessel at time of launching, or at any time before registration, is not recognised as a British ship within the meaning of the Act, and therefore cannot avail herself of limitation of liability. The result of this finding, and the sections to which I have alluded, is that the law of limitation of liability to owners is extended to foreign ships, but is denied to owners of British ships before registration. A foreign ship is entitled to limitation irrespective of registration, and the Bill which I now submit to your Lordships extends that limitation of liability from the launching of a ship until the date of registration. The Bill also provides that the tonnage of British ships shall be ascertained in the same manner as that of foreign ships. I have explained briefly the objects of the Bill, and having ascertained that my noble Friend below me will not oppose the Bill, I have every hope of its passing into law. I feel sure that the shipowning class will be glad to hear that the Government have given their hearty support to so harmless and beneficial a Measure.

§ THE EARL OF RAVENSWORTH
My Lords, as I happen to be the President of the North-East Coast Steamship Owners' Association, I am very glad to have the opportunity of endorsing the words which my noble Friend has addressed to you. "Liability," my Lords, is a word that is looked upon with some suspicion and a great deal of fear usually, and nobody knows better than my noble Friend that, after the experience of last year, we are not inclined to look upon the word with any particular favour. This, I am happy to say, is a Bill of relief to the shipowners, and not a Bill to increase liability. I believe there is no objection whatever to this Bill. On the contrary, I believe it is held in favour by those engaged in the great industry which it effects. It has passed through the Lower House of Parliament, as my noble Friend, the mover, has stated, without criticism or objection, and I feel certain that if your Lordships' House will allow it to pass into law, it will be an act of justice to the shipowning interests of this country.

§ THE LORD CHANCELLOR (The Earl of HALSBURY)
My Lords, I offer no opposition to the Second Reading of this Bill. Of course, it will go to Standing Committee, when the incidence of registration will have to be considered, and a certain time for registration put into the Bill.