§ Mr. Sayeedasked the Secretary of State for Transport what is his latest forecast of the proportion of the United Kingdom-owned merchant trading fleet registered in the United Kingdom mainland ports.
§ Mr. Michael SpicerIn August about 55 per cent. of the shipping directly owned by United Kingdom companies—as measured by total deadweight—was registered in the United Kingdom. The figures used include ships owned by United Kingdom subsidiaries of foreign companies and exclude ships beneficially but not directly owned by United Kingdom companies.
§ Mr. Sayeedasked the Secretary of State for Transport if he will list the tax reliefs, grants and preferential loans available to an investor in a coastal or short sea trading vessel in the United Kingdom; and what information he has as to comparable incentives in the Federal Republic of Germany.
§ Mr. Michael SpicerInvestors in merchant vessels—coastal, short sea or other—in the United Kingdom are normally eligible for annual writing-down allowances of 25 per cent. of the capital cost on a reducing balance basis. The allowances can be carried over into future years and taken at will. United Kingdom owners investing in United Kingdom newbuilt ships are eligible for loans under the home shipbuilding credit scheme for 80 per cent of the capital cost at a fixed rate of interest of 7.50 per cent. over 8½ years. Early repayment of such loans attracts a discount. The business expansion scheme covers companies engaged in shipping including ship chartering, subject to certain conditions. Under the scheme individual investors may get income tax relief for amounts up to £40,000 per year subscribed to new full risk equity.
In the Federal Republic of Germany investors in merchant ships receive grants of up to 12.50 per cent. of the cost of new vessels (20 per cent. of conversions) provided they operate under the national flag for a minimum of eight years. Interest-free loans are also available under certain circumstances. More generally, credit arrangements for domestic orders are available; they are understood to be equivalent to those permitted under OECD rules. Both the straight line and declining balance methods of depreciation are permitted. If the straight line method is chosen, a shipowner may claim in addition an accelerated depreciation allowance of up to 40 per cent. of the purchase price of the vessel during the year of delivery or the following four years.