Tonnage tax : second report of session 2004-05, report, together with formal minutes, oral and written evidence

The UK is a maritime nation, with 95 per cent of our trade carried by sea.

The shipping sector contributes over [pound]1 billion each year to the national economy in overseas earnings, as well as supporting significant land-based activities.

The Committee's report finds that maintaining the UK's prominence in world shipping depends on having a sizeable merchant fleet and trained personnel, both for the merchant navy and for shore-based maritime industries which require staff with experience of working at sea.

The tonnage tax was introduced in 2000 with the aim of boosting the UK fleet and promoting training opportunities.

The Committee's report examines the effect of its introduction on the UK shipping register and the training and employment of UK-based seafarers.