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establishing a positive tax enYironrnent in this country for shipping and
in creating the necessary climate of confidence in the UK to enable any
reyival to occur. But it alone will not tum the tide.
The Chamber of Shipping believes strongly that the Government's
new shipping policy package will re\'erse the vears of decline and underpin
the future both or British-O\\ned shipping and or British seafarers, by
enabling British shipping companies to compete on the sa me basis as
their counterparts elsewhere in Europe and worldwide. Not only will the
industI:/S contribution to the nation's \\'ealth gro\\' as the fleet expands
and more skilled British seafarers are emploved, but there will be substantial
knock-on effeets in other maritime sectors.
Il is difficult, and certainlv premature, to make precise forecasts of
the success of the ne'" policy. However, it is possible to point to precedents
in other countries. As one example, developments in the Netherlands
have been particularly positive since the introduction of their new
shipping policy (including the Tonnage Tax) in January 1996. The results
include a more than 40% increase in the registered fleet, employment increased
by nearly a quarter, and also an increase in shore-based maritirne
activity as e\'idenced by the increase in Dutch orders in Dutch shipyards.
There \vi11 be a positive impact 011 the UK mainland register, but it v-... ill
be indirect.
When the Government's review began, only 20% of the total UKowned
fleet \Vas registered in the UK. Half the British officers serving at
sea \Vere employed on non-CK ships. In these circurnstances, the go\'ernment
accepted that an" mandator" tying of the Tonnage Tax proposal
to UK registration or llag would be counterproductive.
Instead, ali parties agreed that, if there was to be a tie between the
ne\\- Tonnage Tax and other economie in\'olvement, the most usefullinkage
would be to training. The other ad"'antages of the Government's ne\\'
shipping policy - i.e. the new positive fiscal and employment climate
combined with the improvements in the lIag administration - would then
encourage companies to \vant to join the register.
This decision \Vas important far the future, both or the lIeet and of
British seafarers. It \Vas a necessar-y· politica l recognition that the eaming
and employment opportuni ti es which ari se from the UK owned and controlled
shipping operations under ali flags are far more yaluable than
those under the mainland flag alone.
There win in practice be a substantial increase in the register as a natural
side-effect or the new policy. Our largest shipping companv - P&O -
has given a public commitment to bring back 50 ships to the UK mainland
register and to increase its annual intake of officer trainees substantia]]y.
20 of its ships have already been re-flagged. The size of the reg-
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