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Equality Bill

My Lords, the Government would be unwise to accept these amendments. After all, this Government brought in the tonnage tax in 2000, thanks to the former Deputy Prime Minister, since when the British-flagged fleet has increased by a factor of six, bringing substantial amounts to the Treasury. Indeed, in the last year for which figures are available, 2008, the turnover of British shipping was more than £13 billion. The amendments would inevitably, as the noble Earl just said, make the operation of ships under the British flag more expensive. Charges for tankers and bulk carriers would rise by an estimated 130 per cent, for container ships by over 80 per cent and for cruise ships by something over 40 per cent. The inevitable result, with shipping being in a difficult state at the moment as a result of the recession, would be the reflagging of quite a number of ships. It is estimated that as many as 172 ships, making up 43 per cent in terms of tonnage under the British flag, would move abroad. That would have a serious effect on maritime London, which is under threat already, particularly from nations such as Singapore, which only recently offered tax incentives to arbitrators to move there. Maritime London has been the world centre for shipping for many years—not only ship owners, but law, finance, shipbroking and insurance. We should be very careful before making changes to the Bill at this late stage when, as the noble Earl, Lord Attlee, said, consultation is still ongoing with regard to the draft regulations.