§ 37. Mr. Hector Hughesasked the Minister of Transport and Civil Aviation if he will make a statement, giving figures, on the increase in the number of ships built in Britain which during the last 10 years have transferred from the British flag to flags of convenience and on the loss and damage thereby done to the British shipping, shipbuilding and ship-repairing industries; and what steps he has taken and proposes to take to stop this practice and to repair the damage done by it.
§ Mr. NeaveOver the ten years 1947–56, 181 merchant ships of 500 gross tons and over, built in the United Kingdom, were transferred from the United 63W Kingdom or colonial registers to registry in Liberia, Panama, Costa Rica or Honduras. Twenty-two such ships were transferred during the first nine months of this year. Further details are given below.
On the second part of the Question, while the growth of the flags of convenience is certainly a matter of concern to Her Majesty's Government, my right hon. Friend does not think that banning the transfer of U.K. ships to these registers would be an effective means of stopping their growth, nor does he consider that it would be in our interest to take such action.
Ships of 500 g.r.t. and over, built in the United Kingdom, and subsequently sold off the United Kingdom or colonial registers to companies registered in Liberia, Panama, Costa Rica or Honduras:
Year No. of ships G.R.T. 1947 … 14 52,800 1948 … 2 3,100 1949 … 5 38,500 1950 … 17 96,100 1951 … 29 166,600 1952 … 24 114,000 1953 … 9 45,900 1954 … 23 108,800 1955 … 31 169,200 1956 … 27 143,900 1957 to 30th Sept. … 22 117,900 203 1,056,800
§ 46. Sir J. Hutchisonasked the Minister of Transport and Civil Aviation what progress he now has to report in the study which the Government have undertaken into the threat to the British mercantile marine by the ever increasing fleet of vessels registered in certain South American States where taxation is much less than in this country and where conditions of service for crews leave much to be desired; and what interim steps he proposes to take in view of the delay involved in awaiting international agreement.
§ Mr. WatkinsonI assume my hon. Friend is referring to the fleets under flags of convenience. The problems created by the rapid expansion of these fleets are under consideration, and I can promise no early solution. Certain aspects, however, are being pursued in the international bodies concerned and will be considered at conferences to be held next64W year. In regard to the second half of the Question, the Government, as I said in answer to the hon. Member for Bristol, Central (Mr. Awbery) on 20th November, have already reduced the advantages which these fleets have over United Kingdom shipping by doubling the investment allowance for United Kingdom shipping.