§ Mr. SayeedTo ask the Secretary of State for Transport what information he has on the extent of refund to shipping companies of personal taxation and social security payments made by their seafarers made by the Danish and Swedish Governments; what estimate he has made of the value of this concession to the running costs of Danish and Swedish ships engaged in international trade; and what steps he proposes to take to enable British shipping companies to meet this challenge.
§ Mr. PortilloI am advised that Danish nationals serving on ships registered on the Danish international register are exempted from the full rate of income tax with the savings passed on to shipping companies. The Swedish Government rebate to shipping companies income tax and social security payments made in respect of Swedish seafarers serving on Swedish flag vessels engaged in long distance shipping, at an estimated cost for 1989 of 550 million Swedish kroner. The Department has asked the EC Commission to consider the compatibility of the Danish arrangements with the Community's competition rules. The question of state aids to shipping is also under consideration as part of the second stage of the Community's shipping policy.