§ Mr. Beithasked the Secretary of State for Trade what information he has as to the relative profitability for oil companies of chartering oil tankers as opposed to buying them outright ; and what proportion of the fleet operated by British oil companies is chartered.
§ Mr. Clinton DavisI do not have the information required on relative profitability. This changes according to various factors which are themselves not constant, such as new ship prices, second hand ship values, and freight rates both current and expected.
In 1977 chartered vessels accounted for 62 per cent. of the freight earnings of 308W United Kingdom tanker operations, this proportion having declined from 71 per cent. in 1973. Oil company operations accounted for most of these earnings, but with some contribution from non-oil company tanker owners.