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I
NTRODUCED in 2000, the
favourable tax concession to
shipowners has led to a three-fold
increase in foreign-owned vessels
flying the Red Ensign and was envis-
aged to include training for UK ship-
pers. However, the decline in British
seafaring jobs has continued. Over
£70 million in taxpayers’ money has
been handed out to shipowners, but
there has been no link to ratings’ train-
ing and jobs.
Shipowners have continued to
employ foreign labour employed at
lower rates due to a loop-hole in the
section nine of the race relations act,
which allows for discrimination on
British ships. Today there are fewer
than 10,000 UK ratings left. Action
must be taken to stem this decline.
RMT shipping secretary Steve
Todd said that the new tax had been
hailed as the salvation of the
shipping industry, but there is now a
grave danger of the British rating
disappearing altogether.
“We have seen some ratings to
officer training take place since 2000
but many ratings have been replaced
with overseas seafarers on terrible
rates of pay,” he said.
Flag of convenience?
Ratings from eastern Europe and the
far east are being paid little over a
pound an hour for working 70 hours
a week on British-registered ships,
many of them foreign-owned,
preventing British seafarers from
competing for jobs.
vessels have flagged-in to the
British fleet in order to benefit from
the tonnage tax but have no respon-
sibility to obey UK laws of
employment.
These developments have led to a
growing feeling that the Red Ensign
–the historic symbol of Britain’s
merchant navy – is turning into a flag
of convenience.
International Transport Workers’
Federation (ITF) inspectors have
uncovered instances of appalling
exploitation of foreign crews, with
some Filipino crew members earning
just £1.34 an hour for working over
300 hours a month.
ITF UK co-ordinator Norrie
McVicar described the situation as
“slave labour” and “social dumping
at its worst”.
“It’s an absolute disgrace that we
are still arguing with the government
on bringing in measures to change
this,” he said.
RMT to blame?
The union rejected bizarre claims by
deputy prime Minister John Prescott
that RMT were to blame for the rise
in low paid foreign crews on British
ships.
The former RMT member made
the claim during parliamentary
question time earlier this month
when he was asked why the tonnage
tax had failed to deliver extra UK
jobs or training places as promised.
The deputy PM claimed that there
was extra training but RMT “did not
take up the training arrangements for
British crew members to be on board
the ships”.
RMT general secretary Bob Crow
said the deputy PM was “worryingly
misinformed” on the issue of training
for UK seafaring ratings.
“RMT has consistently reminded
the government of the failure of the
Tonnage Tax regime to deliver
training and employment opportu-
nities for UK seafaring ratings.
“The fact is that there are only
around 50 UK ratings being trained
each year – not enough to replenish
even the current all-time low number
of UK ratings in the industry,” he
said.
Shipping secretary Steve Todd
also said that to accuse the union of
missing training opportunities was
“sheer nonsense”, pointing out that
RMT would never turn its back on
training and job opportunities.
“Taxpayers have been handed over
more than £70 million for the
tonnage tax, but so far nothing has
stopped shipowners dumping UK
ratings in favour of low-paid
overseas recruits.
“What the industry desperately
needs is government action to
reverse the decline in UK ratings’
jobs – and that means a formal link
between the million
out in tonnage tax
creation of training
jobs,” Steve said.
Website
The RMT website h
campaign page wh
material that can b
RMT news – Link the tonnage!
OVER 80 MPs have signed the Early Day Motion
880 calling for the government to link
entitlement to the tonnage tax to training and
job opportunities for UK seafarers.
Link the tonnag
THIS CAMPAIGN COULD NOT B
WITHOUT THE POLITICAL
16
Postcard
Enclosed with th
postcards which
EDM and to the s
tax, including a l
Whatever grad
MP, adding your
sign EDM 880 an
BGM backs
The RMT’s bienn
to achieve a link
employment of U
National shipp
campaign was n
the repeal on se
Steve outlined
ment and trainin
had been establ
lobbied through
had been tabled
Brian Armstron
the union should
shipowners to th
job for UK seafa
Malcolm Dunn
foreign ships, inc
fleets, which hav
tonnage tax paid
John Moran of
picking” whereb
ignoring UK laws
"This concess
and all legislatio
said.
Mark Winches
campaign to ma
ns being handed
relief and the
opportunities and
has a specific
hich contains
e used to support
the RMT case. In particular model
letters that can be sent to MPs can
be downloaded and adapted for use.
Many MPs have already
signed the EDM, so a letter should
also be sent directly to the Shipping
Minister and this is also available on
the website.
www.rmt.org.uk
py possible cut?
RMT parliamentary
group at work
The RMT parliamentary group has
swung into action in support of
the tonnage tax campaign by
writing to each MP explaining the
need for a change in the tax
concession to save UK jobs.
The group has been successful
in encouraging fellow MPs to sign
EDM 880 and hopes the postcard
campaign will bring in many more
signatures. The RMT group of
MPs has also won a select
committee enquiry on the issue
and secured a meeting with the
Treasury minister Dawn Primarolo
to discuss the need for reform of
the tax.
RMT has also written to the
Inland Revenue outlining the
union’s case and a reply has now
been received. The response
stated that the Department of
Transport would be taking the
lead in any decisions regarding an
employment or training link.
However, it was unable to provide
details of the timetable for the
review process, including the
likely date for any decision.
e!
BE POSSIBLE
L FUND
“This House is deeply concerned
that the total number of UK
seafaring ratings has declined from
30,000 ratings in 1980 to less than
10,000 in 2003; regrets that the
decline has continued since the
introduction of the Government’s
tonnage tax regime; notes that the
proportion of British Officers is also
declining and has fallen by more
than 27 per cent in the last three
years; believes that the decline in
UK seafarers cannot be allowed to
continue if this country is to retain
a core of essential maritime skills;
abhors the fact that ship owners
who have benefited massively from
millions of pounds of public subsidy
through the tonnage tax regime
have failed to arrest this decline in
British jobs, notes that in its
current form the tonnage tax has
not generated significant training
and employment opportunities for
UK seafaring ratings and officers
and calls on the Government to use
the current Inland Revenue review
to introduce a firm link between the
concession and the increased
employment of UK seafaring
ratings and officers on UK
registered ships.”
EDM 880: Seafarers Employment
and the Tonnage Tax
17
EDM 880 signatures
LABOUR PARTY: Harry Barnes, Joe
Benton, Harold Best, Bob Bizzard,
Martin Caton, Colin Challen, Helen
Clark, Tony Clarke, Harry Cohen,
Michael Connarty, Jeremy Corbyn, Jim
Cousins, Ann Cryer, Jim Cunningham,
Claire, Curtis-Thomas, Ian Davidson,
Terry Davis, Janet Dean, Jim Dobbin,
Brian H Donohoe, David Drew, Louise
Ellman, Bill Etherington, Paul Flynn,
Hywel Francis, IanGibson, Win Griffiths,
David Hamilton, Ivan Henderson,
Stephen Hepburn, Kelvin Hopkins,
Lindsay Hoyle, Brian Iddon, Eric Illsley,
Brian Jenkins, Lynne Jones, Peter
Kilfoyle, Mark Lazarowicz, Terry Lewis,
Calum Macdonald, Alice Mahon, Rob
Marris, John McDonnell, Ann
McKechin, Kevin McNamara, Tony
McWalter, Alan Meale, Austin Mitchell
Doug Naysmith, Edward O'Hara,
Sandra Osborne Albert Owen, Gwyn
Prosser, Syd Rapson, Phil Sawford,
Alan Simpson, Marsha Singh, Dennis
Skinner, John P Smith, Gavin Strang,
David Taylor, Desmond Turner, Rudi Vis,
Joan Walley, Robert N Wareing, Betty
Williams, Anthony D Wright, Derek
Wyatt LIBERAL DEMOCRATS: Alistair
Carmichael, Andrew George, Mike
Hancock, Nigel Jones, John Thurso,
Roger Williams PLAID CYMRU: Adam
Price SOCIAL DEMOCRATIC AND
LABOUR PARTY: Eddie McGrady
ULSTER UNIONIST PARTY: Roy
Beggs, David Burnside Sylvia Hermon,
Martin Smyth DEMOCRATIC
UNIONIST PARTY: Nigel Dodds
his edition of RMT News are tonnage tax campaign
you can send directly to MPs to ask them to sign the
shipping minister demanding action on the tonnage
ink between the tax and British jobs and training.
de you work in, please find time to drop a line to your
address at the bottom of the card, and ask them to
nd find out their views on the subject.
Tonnage tax campaign
nial shipping conference backed the campaign
k between the tonnage tax and the training and
UK seafarers.
ping secretary Steve Todd said that the tonnage tax
now the priority although work was also continuing on
ction nine of the Race Relations Act.
the determination of the union to secure an employ-
ng link. He reported that a special campaign page
ished on the RMT website and that MPs were being
the postcard campaign to support the EDM 880 that
on this subject.
ng of Southampton branch posed the question why
d continue supporting a tax that had benefited the
he tune of over £70 million but had not produced one
arers.
ning of the shipping committee said that hundreds of
cluding from the infamous Liberian and Panamanian
ve appalling safety records, were benefiting from
d by UK taxpayers.
f Liverpool branch said it was a clear case of “cherry
by shipowners were taking the tax concession and
s.
ion should only apply to ships flying the Red Ensign
on should apply, including the UK minimum wage," he
ter of Dover branch said there was a need to
ke the taxpayer aware of the tonnage tax rip-off.
RMT news – Link the tonnage