HC Deb 13 November 1980 vol 992 cc315-6W
Mr. Parry

asked the Secretary of State for Trade what representations his Department received during the recent dispute over flags of convenience.

Mr. Eyre

One letter from an hon. Member and two from members of the public.

Mr. Parry

asked the Secretary of State for Trade if he will make a statement on Her Majesty's Government's present policy on British shipping companies using flags of convenience.

Mr. Eyre

More foreign-owned shipping is registered in the United Kingdom than United Kingdom-owned ships under foreign flags. But the choice of flag is a commercial one for the owner, who has to take account of relative operating costs including labour costs. The Government wish to see a thriving British register, but this can be achieved only if both sides of the industry exert themselves to keep its costs competitive, in their joint interests.

Mr. Parry

asked the Secretary of State for Trade what discussions his Department had with the National Union of Seamen and Trafalgar House Ltd. during the recent dispute over flags of convenience.

Mr. Eyre

Trafalgar House Ltd. has told my Department why, in its view, it was not possible to operate the "Cunard Princess" and "Cunard Countess" competitively under the British flag. We have made clear our willingness to have discussions with the National Union of Seamen.

Mr. Parry

asked the Secretary of State for Trade if he will make a statement on the settlement of the recent dispute over the use of flags of convenience.

Mr. Eyre

The terms of settlement are matters for the company and trade union concerned. I understand that Cunard and the National Union of Seamen have agreed that the "Cunard Princess" should remain under the Bahamian flag and the "Cunard Countess" under the British flag. I also understand that NUS members formerly employed on the "Cunard Princess" will be offered full pay until re-employment on the "Queen Elizabeth II" is available, with the alternative of agreed severance terms.