§ Mr. WareingTo ask the Chancellor of the Exchequer if he will make a statement on the progress of the review of the tonnage tax. [173675]
§ Dawn PrimaroloThe tonnage tax review is currently considering a number of representations from professional advisors, industry bodies, companies and Unions. These cover diverse areas of the regime, including the range of vessels covered by the regime, the training link, and numerous technical points. The impact of the regime on British shipping is being assessed. Certainly there has been a very positive effect on the registration of ships under the UK flag.
In particular, the review is also addressing the impact of revisions to the EU State Aid guidelines for maritime transport that were issued in January 2004. Discussions, primarily on the changes that will be necessary as a result of the changes to the guidelines continue between officials at the Inland Revenue and Department for Transport with industry bodies.
I expect that a number of proposals for revision of the scheme will be put forward in due course, but at this stage it is not possible to give a firm date by which the review will be completed.