HC Deb 04 July 1940 vol 362 cc1039-40W
Sir R. Aske

asked the Minister of Shipping whether it has been, since the beginning of the present year, the practice of the Ministry not to sanction any applications made under the Ships and Aircraft (Transfer Restriction) Act for licences for the transfer of British ships to British purchasers unless the Ministry was satisfied that the buyers realised that the fact of a licence being granted would not entitle them to any special consideration in respect of requisitioning, direction, insurance or compensation, and that the buyers wished to proceed with the transfer notwithstanding?

Mr. Cross

The intention to extend the scope of requisitioning was publicly announced on 4th January and at that time it was the practice to call the attention of intending sellers and purchasers of ships to this announcement and to withhold sanction to the transfer unless it was clear that in the circumstances both parties wished to proceed with the transaction. Later, on 15th February, as the values at which ships might be bought would naturally be influenced by the rates of hire, the provision for compensation and the other conditions for requisitioned ships then under discussion, the shipowners' associations were informed that the granting of sanctions for the transfer of ships other than fishing vessels and other small craft was generally suspended for the time being. By the 12th March my predecessor's proposals in regard to compensation for the loss of ships through war risks were generally known to shipowners and it was no longer necessary to suspend consideration of applications for sanction to the transfer of ships. The associations were informed accordingly by letter on that date, and at the same time were notified that any arguments based on the fact that ships had been transferred at prices in excess of their pre-war values would not be allowed to influence policy in regard to requisitioning conditions and rates of hire or in regard to compensation for loss through war risks.