§ 2.45 p.m.
VISCOUNT STONEHAVENMy Lords, I beg leave to ask the second Question which stands in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government whether they are aware that a number of Navy-trained divers offer their services on a "lump" basis (self-employed) to British, European and foreign companies, and can thereby avoid British tax liabilities especially in the cases where they are not employed by United Kingdom companies; and whether they are aware that this places British contractors in an unfavourable competitive position when tendering for underwater contracts in the North Sea.
THE EARL OF GOWRIEMy Lords, the Government are aware that self-employed divers are engaged in oil and gas operations in the North Sea; but they have no reason to believe that such divers are generally avoiding tax, or adversely affecting the competitive position of British contractors. If the noble Viscount has any information about particular cases, I should be happy to pass it on to 1032 the Inland Revenue or to the Department of Trade and Industry.
VISCOUNT STONEHAVENMy Lords, I thank the noble Earl for that Answer. May I ask him to receive the information which I shall pass on to him?
§ THE EARL OF LAUDERDALEMy Lords, would the noble Earl bear in mind, and is he aware, that one reason why British divers in particular work for the French firm COMEC is that that firm is thought by many divers to have a wider back-up of research than their British competitors? The same reason applies to the Italian firm, Sub-Sea Oilfield Services.
THE EARL OF GOWRIEMy Lords, again I am grateful to my noble friend for that information and I shall see that it gets to the right quarters.