Shipping: Tax Revenue

Lord Trimble Excerpts

Wednesday 18th January 2012 Lords Chamber

[Lord Sassoon]

My Lords, I am surprised that there are any suggestions of some cosy deal. After all, this was a tax introduced by the noble Lord’s Government. He now says that he might have done a cosy deal. It has put British shipping ownership on a level playing field with other countries in Europe; it involves state aid, and the EU at some stage will review it. If anything, the complaint that we get is that other countries take unfair advantage of the EU dispensations.

As to what the other House has to say, I am sure that noble Lords will not need reminding that it was as recently as 1628 that this House stood up to another place on the question of tonnage and poundage and got us into frightful trouble, not least with the attempted impeachment of the Duke of Buckingham, who put forward the proposal. So I am certainly not going to cross swords with another place on this topic.

[Lord Trimble]

I listened with interest to the Minister’s reply to the noble Baroness, Lady Kramer. He said that the tax, by reducing the amount payable so far below what would be payable in corporation tax, led to a huge increase in tonnage. Does that not indicate that there ought to be a similar movement in corporation tax generally and that it would be hugely successful?

[Lord Sassoon]

My Lords, what it indicates is that tax competition and not having tax dictated on some uniform basis from Brussels is something that we will defend to make sure that where appropriate we can take advantage of that. We will have the lowest corporation tax regimes in the G7 and then one of the lowest in the G20. That will make our industry highly competitive on tax.