§ Mr. ANDERSONasked whether the shipowners whose vessels are in the employ of the Transport Department have succeeded in obtaining an advance in the price paid for their ships beyond the original determination; whether the first award was given by Lord Inchcape on the understanding that it should not be regarded as a minimum on which to build further claims; whether the Arbitration Committee appointed to adjust prices paid to shipowners consists almost entirely of shipowners; whether there is anything to justify these fresh demands other than the freightage ruling in the open market; and whether all the facts in regard to these negotiations will be supplied to the House?
§ Dr. MACNAMARAAs indicated in reply to my hon. Friend's question of the 18th February last, shipowners have not obtained an advance in the price paid for their ships beyond the original determination, except owners of oil tankers and tramp steamers, who have asked for higher rates to meet altered circumstances since 1st January. These requests have received the careful consideration of the Board of Admiralty, and a fresh agreement has been arrived at with the general body of these owners for moderate increases in rate, to date from 1st January; but it has also been stipulated that these rates shall obtain for all requistioned steamers during the period of the War. These agreements were made with representative committees of the shipowners concerned, and have since been confirmed individually by the large majority of the owners. A certain section of the Glasgow-shipowners have up to the present not signified their concurrence. Rates for certain smaller steamers not covered by these agreements are now under discussion. The increases granted may be summarised roughly as follows:—In the case of tramp steamers, the increase asked for was 33 per cent.; the increase granted, 16 per cent. Tank steamers asked for from 11 per cent. to 39 per cent. according to size; granted, from 8 per cent to 22 per cent. These settlements are very favourable to the Government when compared with the204W rates ruling in the market. After the expiry of a short period certain, the Admiralty will have in all cases the right to discharge the vessels on giving notice varying from a fortnight to six weeks, according to the type of steamer; whereas, in the market, time charters are readily obtainable for six, eight, or nine months at rates varying from 50 to 70 per cent. higher than the Admiralty rate. I should say that shipowners in general have throughout these negotiations approached the matter in a reasonable spirit and with real regard to the special conditions created by the present emergency.
Lord Inchcape was Chairman of certain Sub-Committees of the Arbitration Board which, on 22nd October last, reported to Lord Mersey, President of the Admiralty Transport Board of Arbitration, for his information and advice, the basis, general scale or rate at which payment to owners of ships requisitioned for Government service should be assessed. In forwarding these, recommendations to the President, Lord Inchcape stated that he trusted that the shipwoners would not look upon the rates as a minimum on which increases might be built. The Board of Arbitration consists of seventeen panels, namely, Government nominees, shipowners (four panels representing different types of steamers), cargo owners, bankers, underwriters, marine insurance companies, insurance brokers, average adjusters, and five panels representative of officers, engineers, seamen, firemen, and stewards of the mercantile marine. The Sub-Committees alluded to above were drawn from these panels, including in each case a Government representative. The increases lately granted are, it is considered, justified on the ground of the very much increased running expenses, especially the enhanced cost of stores, repairs (including the abnormal delay in effecting them), and, in the majority of vessels, of provisions. It is not considered desirable in the public interest to publish the detailed proceedings of the meetings between the representative committees and the Admiralty. With this exception, the course of the negotiations has been fully reported in the public Press.