Select Committee on Environment, Transport and Regional Affairs Minutes of Evidence

Supplementary note by F M Everand Esq


  I would like to emphasise the fact of the enormous anomaly the seafarers tax situation has for coastal shipping. For some years the UK share of the coastal trade has declined. This means an increasing share is taken by our foreign competitors many of whom have their seafarers on a net payment agreement. This means that the owner keeps the tax that the seafarer would have paid hence giving their ships that trade around the UK an unfair advantage. For instance there is one Swedish coastal tanker company that does substantial trade around the UK whose seafarers are on a net pay agreement which makes them very competitive and this is unfair to all UK companies and their UK seafarers.

  This trend to increasing use of non-British seafarers around the UK coast will continue until something is done about it.

8 February 1999

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