§ 3.7 p.m.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether any action is contemplated to deal with the question of shipping registered in certain countries to avoid taxation regardless of the country of origin of the owners.]
§ LORD MANCROFTMy Lords, the problem of meeting the threat which the rapid growth of the "flags of convenience" offers to the merchant fleets of the United Kingdom and other established maritime countries is one which has occupied Her Majesty's Government for some time. The action taken by the Government in this year's Budget to increase the investment allowance for shipping has already reduced the advantages which the "flags of convenience" have over United Kingdom shipping. The international aspects of the problem are now being studied by the Organisation for European Economic Co-operation, and the Government will consider the matter further when the report of the Organisation is received.
§ EARL HOWEMy Lords. may I thank the noble Lord very much for that Answer? No doubt he is aware—or perhaps I should ask him whether he is—that from 1939, when there were some 3,000 tons of this shipping, the tonnage has grown until the total involved, so far as four countries are concerned, is now 11 million tons. And, further, is the noble Lord aware that these ships are working without any regard to agreements relating to wages and working conditions for crews? It really is a serious matter.
§ LORD MANCROFTYes, my Lord, I am aware of the facts; and the Government are aware of them also. We agree with the noble Earl that it is a serious matter.
§ LORD WINSTERMy Lords, may I ask the noble Lord if he is aware (I am sure he is, but I have to put it in this way) that the International Law Commission of the United Nations have considered this matter and have recommended that it should be met by insisting upon a genuine link—"genuine link" are the words actually used—between the shipping and the country of registration? May I further ask the noble Lord whether he will impress that point upon his right honourable friend with a view to the Government's giving it their fullest support when the matter is considered again in March next year? It seems to me to be a very sensible way of dealing will a scandal—and a growing scandal.
§ LORD MANCROFTMy Lords, I will certainly bring that point to the attention of my right honourable friend. I should like to thank the noble Lord for asking the question, and also to express our pleasure at the fact that he is here to put it.
§ VISCOUNT ALEXANDER OF HILLSBOROUGHMy Lords, arising out of what has just been said, about the conditions of service being operated in these ships, could the noble Lord, Lord Mancroft, tell me whether the Ministry of Transport have received any direct representations from delegations from seamen's trade unions in this country?
§ LORD MANCROFTMy Lords, I could not, without notice, tell the noble Viscount whether the Ministry have received any direct representations. But I have received from certain unions—as I am sure the noble Viscount and others have also—a pamphlet with the unpronounceable title of Panlibhonco, which sets out the case fully and to which I know my right honourable friend is giving full and careful attention.