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his information from that table. If he did, perhaps I may make it clear that there are also examples which tend to point in the other direction.

In Belgium, Denmark, France, Germany, Ireland, Italy, Portugal and Spain, seafarers are treated no differently from other employees for taxation purposes. By contrast, in the United Kingdom, seafarers who spend fewer than 183 days in this country in any 365-day period qualify for 100 per cent. tax relief on foreign earnings. Seafarers in Belgium, Denmark, Finland, Germany, Ireland, Italy, Luxembourg and Portugal, like their United Kingdom counterparts, make the same social security payments as other employees, and I know that some recent concessions have been made by France on this. As my hon. Friend will appreciate, we are seeking further clarification from the French Government on their move.

In Belgium, Denmark, France, Italy and Portugal, corporation tax is higher than the 35 per cent. levied in the United Kingdom. Of course, Germany's rate of 33.6 per cent. and the 35 per cent. levied in the Netherlands and Spain are exactly comparable with the United Kingdom. Unlike many other countries covered by the survey, we offer direct financial support for officer training. At present, that is in excess of £3 million a year-- not, incidentally, the £0.7 million quoted on page 155 of the Select Committee's report. We also provide relief in the form of a subsidy of about £3 million per year to enable crews to be shipped or flown abroad to where they pick up the vessel. In addition, as my hon. Friend the Economic Secretary explained during the debate on the Finance Bill earlier this year, shipping--together with the rest of industry--benefits from the Government's fiscal and monetary policies. While I am on this subject, I take the opportunity to acknowledge my hon. Friend's understanding that on the eve of the Budget he cannot expect me to say anything more specific on that matter ; I aim to hold this office for at least another 24 hours, if not longer.

I have given those examples simply to demonstrate that there are two sides to the coin. My hon. Friend is right that there are some areas in which other European competitors appear to offer more advantage than that offered in the United Kingdom. As I hope that the illustrations I have given show, however, there are many ways in which the United Kingdom offers a competitive environment. Our Government have evolved a package of measures tailored to suit the needs of our shipping industry. For example, training is high on our agenda, and that is entirely right. Some support measures serve only to distort the market and, as such, they represent unfair competition. It is that latter group that we targeted during our recent EC presidency, and which we shall continue to attack. I make no apology for that. We hope that our partners will be persuaded by our arguments. I do not claim that we are on the threshold of success, but there are signs that others are beginning to accept the force of what we say.

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It is interesting to note that many of the EC countries which are often praised for the support that they give their national shipping have been unable to work the longed-for miracle. Within the Community, in the 12 months from 1 January 1992 to 1 January 1993, only France, Greece and the Netherlands could claim an increase in registered tonnage. All the other member states lost ground during that period. I am sure that my hon. Friend will be the first to acknowledge that overt financial and/or fiscal support is not the only means whereby our competitors can gain unfair advantage. Over the years, we have made every effort to remove restrictions on trading opportunities. We were delighted that the debate on EC cabotage was brought to a successful conclusion during our presidency.

I shall not disguise the fact that the result was not so liberal as we should have liked. Nor do I ignore the fact that, regrettably, some member states are being selective in their implementation of the agreement. Nevertheless, even in its present form it is of considerable significance to British shipping and will open up new and potentially profitable opportunities, which will grow as the various derogations lapse. As I speak, my right hon. Friend the Secretary of State and my noble Friend the Minister for Aviation and Shipping met our EC counterparts in an endeavour to agree further measures, which we hope will redound to the benefit of the Community and, by extension, to our shipping industry, to those who work in it and to users.

It is of regret that many of the newer flag states regard shipping as a soft option and consequently pay little or no attention to their responsibilities. That is grossly unfair to seafarers, to passengers who sail on their ships and to manufacturers who, in good faith, entrust their cargoes to them. Nor is it fair to countries whose environment suffers the consequence of badly maintained vessels, or indeed those responsible ship owners, particularly those who fly the Red Duster, who maintain their ships to the highest standards at considerable cost in terms of time and money. The United Kingdom has recognised the problem and taken the lead in seeking remedies with like-minded Governments in the EC and International Maritime Organisation.

There are one or two points that my hon. Friend made on the detailed 100 per cent. ship allowance and roll-over relief that I have not been able to answer, together with his point about merchant shipping and defence. I hope that he will accept that the recent review allowed Ministers in the Ministry of Defence to announce that special measures on shipping were not considered necessary. If I may, I will write to my hon. Friend on any outstanding issues.

Question put and agreed to.

Adjourned accordingly at thirteen minutes to Twelve midnight.

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