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shipowners which I first raised in the Budget Debate in
March 1987. I have to declare an interest as someone
beneficially interested in ships that are affected, although my arguments are made principally as Chairman of the Hong Kong Shipowners Association. I believe the difficulties and the remedies are now much better
understood than they were last year, but the solution still seems as far away despite the fact that the US, legislation has now become more imminent in that tax
returns need to be filed. shortly. The technical
11 question is whether the Government is willing to 12 exchange the relatively insignificant source of
revenue from the tax on US, ships loading in Hong Kong harbour, against an American exemption for freight taxes on Hong Kong-registered and/or Hong Kong-beneficially owned vessels trading to US,
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17 ports.
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The more fundamental question is whether the 18 Hong Kong Government is willing to consider the
shipping industry as one different enough to make certain allowances which recognises its international character and mobility, as well as the economic and fiscal contribution a strong shipping establishment at least indirectly makes to Hong Kong. Particularly as we are working on the establishment of an autonomous 25 shipping register, it is of some importance for the
26 shipping community to know whether they can expect
27 understanding of their special needs now and later.
28 After all, factories do not sail around the world
29 to be taxed at random by whoever can put them under NP 30 arrest for non-payment. And If the answer to these
questions turns out to be in the negative, I believe
any enthusiasm not only for the future register but
33 for Hong Kong as a place of operations for shipowning
34 and ship management will quickly dissipate. I have 35 witnessed the rapid declining of the British merchant
36 fleets over the last 14 years and would not wish to
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