4 Conclusion
69. The tonnage tax regime has led to an increase
in the number of ships on the UK register and a small increase
in the UK owned fleet. It has also brought foreign shipping companies
to the UK and persuaded UK companies to remain here who might
have been tempted to leave. The training obligation for shipping
companies, who opt into the tonnage tax regime, has resulted in
an increase in the number of UK-based cadets being trained. To
this extent it is an extremely welcome success.
70. However, although we recognise that shipping
is an international industry and incentives and obligations must
be carefully balanced, we believe the Government could be more
ambitious in exploring changes which might ensure the regime produced
greater benefits for Britain, while still remaining attractive
to industry. Tonnage tax has improved the situation of British
shipping; it has not solved all its problems. The number of cadets
being trained appears too low to increase the number of officers
or produce the trained personnel needed to supply shore-based
maritime industries. There is no system for monitoring what happens
to cadets once they leave their initial training. There has been
no increase in the employment of UK ratings.
71. The Government has asked the Shipping Task Force
to look at employment and training. This is entirely appropriate,
but ultimately, the Government is responsible for considering
whether changes to the regime would be desirable and effective.
Remitting difficult questions to the Shipping Task Force should
not be used as a way to ensure they need never be answered. The
Task Force must be given a deadline for its work, and, once it
has been completed, the Government must consider whether changes
can be made to increase the effectiveness of the tonnage tax regime
in supplying Britain with the trained personnel it needs, and
report back to the House.
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