Colonel THORNEasked the Chancellor of the Exchequer how much has been paid by the Government out of public funds to shipowners in compensation for ships sunk by the enemy between 4th August, 1914, and the date of the Armistice; what is estimated to have been the 568W original cost to the shipowners of these sunk ships; and whether any and, if so, how much taxation has been levied upon the sums paid to shipowners in this way in excess of the original cost?
§ Colonel LESLIE WILSONI have been asked to answer this question. I assume that the hon. Member refers to British ships lost while under Government requisition and at direct Government risk, and does not include vessels insured in the Government War Risk Associations. The figures are:
Amount paid, £104,031,271.
First cost to owners, £51,116,806.
In addition, £1,368,825 was paid in respect of twenty-five ships whose first cost is not known. There are also a few cases not yet settled.
So far as I am aware no taxation is levied on these sums, which represent capital not income, and are required to replace the vessels. As the hon. Member is no doubt aware, building costs are now from two to three times what they were before the War.