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FRIDAY, NOVEMBER 7, 1986
MR JACOBS CONTINUED: +WE HAVE NOT INSISTED ON ANY LEGISLATIVE REQUIREMENT THAT THERE SHOULD BE A RESIDENTIAL LINK BETWEEN HONG KONG AND THE CREW ON HONG KONG SHIPS BECAUSE IT IS OUR OBJECTIVE THAT THERE SHOULD BE AS LITTLE CHANGE AS POSSIBLE IN ORDER FOR THE NEW REGISTER TO TAKE OVER SMOOTHLY FROM THE OLD.+
HE ADDED THAT NEARLY HALF THE POSTS AVAILABLE ON ALL HONG KONG REGISTERED VESSELS WERE ALREADY BEING FILLED BY HONG KONG SEAMEN FOR OCEAN-GOING SHIPS THE PROPORTION WAS ABOUT A THIRD.
BESIDES, SINCE THE NUMBER OF ADEQUATELY QUALIFIED HONG KONG OFFICERS WAS INSUFFICIENT TO MEET THE DEMAND FROM SHIPS AT PRESENT REGISTERED IN HONG KONG, EITHER THE NEW REGISTER WOULD START OFF IN AN UNSATISFACTORY WAY BY RELYING ON WIDESPREAD EXEMPTIONS OR THE SIZE OF THE FLEET WOULD HAVE TO DROP TO MEET THE NUMBER OF OFFICERS AVAILABLE.
ON SELF-FINANCING OF THE REGISTER, MR JACOBS SAID, IT MAY WELL BE THAT THE PRESENT SYSTEM OF FEES AND CHARGES SHOULD BE OVERHAULED AND THE COSTS OF THE REGISTER RECOVERED, IN A DIFFERENT WAY FOR EXAMPLE AS THE ASSOCIATION HAS SUGGESTED, FROM AN INITIAL REGISTRATION FEE PLUS AN ANNUAL TONNAGE FEE.+
THIS WOULD GIVE THE REGISTER A GREATER DEGREE OF FINANCIAL STABILITY ON A YEAR-ON-YEAR BASIS, HE SAID.
TURNING TO AN ARGUMENT THAT IN ORDER TO MAKE THE REGISTER EFFECTIVE, HONG KONG SHOULD OFFER SIGNIFICANT TAX EXEMPTIONS TO THE SHIPPING INDUSTRY, MR JACOBS SAID BOTH RESIDENT AND NON-RESIDENT SHIPOWNERS WERE SUBJECT TO HONG KONG PROFITS TAX ON THAT PART OF THEIR WORLDWIDE PROFITS ARISING FROM OUTWARD FREIGHT FROM HONG KONG REGARDLESS OF WHERE THEIR SHIPS WERE REGISTERED.
HE POINTED OUT THAT THE FUNDAMENTAL PRINCIPLE UNDERLYING THE TAXATION SYSTEM WAS THAT PROFITS WHICH WERE DERIVED FROM HONG KONG SHOULD BE LIABLE TO TAX HERE.
+I CAN SEE LITTLE JUSTIFICATION FOR TREATING PROFITS FROM THE BUSINESS OF SHIPPING DIFFERENTLY FROM PROFITS FROM ANY OTHER BUSINESS, + HE SAID.
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