Captain TERRELLasked the Parliamentary Secretary to the Minister of Shipping how many ships the Ministry is directly running for a profit; how many ships it is running for a profit through private firms; what is the profit earned in the last 12 months; and what management charges have to be paid against such profit?
Colonel WILSONAll steamers running for account of the Ministry of Shipping are in the hands of commercial managers. Steamers are used wherever required for Government services. Where not so required, they are chartered commercially, and any profit resulting from their employment accrues to the Government. The same steamer may be used partly on Government service and partly commercially. The number of steamers during 12 months has varied considerably. The number at present is about 300, practically all ex-enemy tonnage. The remuneration of managers of cargo steamers varies from £300 to £1,000 per annum, according to whether steamers are run mostly for Government services, where no freight is earned, or commercially. The remuneration for passenger steamers is 2½ per cent, on the Blue Book estimated hire, together with 2½ per cent, on homeward freight and passage money secured by the operating line.
Owing to the mixed nature of the vessels' employment it is not possible to estimate the profit on an ordinary commercial basis, but for the year 1919–20 the excess of receipts over expenditure in the case of Government-owned prize and detained vessels and other ex-enemy vessels was, in round figures, 2¾ millions. This figure, on the one hand, does not include any allowances for depreciation or interest on capital values, and, on the other, it takes no credit for a very large amount of Government work which was done at Blue Book rates, and which if done at market rates would probably have doubled the above figure.