asked the Minister for Transport and Power what will be the effect on Irish Shipping Limited of the demands of the United States Federal Maritime Commission for the cancellation of contracts by British Lines; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Irish Shipping Limited Contract Rates.
35.
So far as Irish Shipping Limited is concerned, the position is that technically it is unlawful for the company under US law to give the benefit of contract rates to exporters of goods from British and Irish ports to the United States with effect from 4th April, 1964.
Irish Shipping Ltd. in common with the other member lines of the North Atlantic Westbound Freight Association do not propose at present to cancel the existing contracts. Non-cancellation would leave the shipping lines concerned open to prosecution under United States law and, if found guilty, liable to a fine of $1,000 a day.
The new form of contract specified by the Federal Maritime Commission is at present being examined by the legal advisers of the North Atlantic Westbound Freight Association and there may be a possibility that a solution to the impasse may be found without recourse to legal proceedings by the United States authorities.
The position arising out of this and other difficulties which have arisen from the efforts of the Federal Maritime Commission acting under US law to regulate international shipping unilaterally is being kept under close review in consultation with the other European countries concerned.