HC Deb 30 January 2004 vol 417 c569W
Mr. Carmichael

To ask the Chancellor of the Exchequer what discussions his Department has had with representatives of the shipping industry to discuss plans to prevent workers on offshore installations from receiving the foreign earnings deduction benefit; and if he will make a statement. [151603]

Dawn Primarolo

The intention of Foreign Earnings Deduction (FED) is to encourage seafarers to work on UK ships which can be called upon in time of conflict. Some workers on offshore installations are exploiting FED to seek a tax relief that was never intended for them. As announced in the pre-Budget Report, we will be introducing amendments to the legislation to make it clear that workers on offshore installations are not entitled to this relief and officials have begun discussions with industry representatives.

Mr. Carmichael

To ask the Chancellor of the Exchequer what plans he has to limit the entitlement to foreign earnings deductions for seafarers serving on ships registered in the UK or other EU countries; and what assessment his Department has made of the impact such a change would have on the UK shipping sector. [151605]

Dawn Primarolo

In the pre-Budget Report (Cm 6042), it was announced that there would be changes in the Foreign Earnings Deduction to prevent workers on offshore installations claiming the relief. Any changes beyond this would follow consultation with the shipping industry and trade unions and be consistent with the Government's continuing support for the UK shipping, industry.

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