revitalise its shipping industry.

Britain recently announced it is to introduce a low-rate tonnage-based corporation tax, designed to attract merchant vessels on to its shipping registry -- which has decreased from 1,300 to 250.

The Department of Transport Bermuda Registry of Shipping is keeping a watching brief on the move until it is aware of the full implications.

Bermuda does not have a corporation tax, just a normal tonnage levy raised on vessels registered here.

The new UK tax, revealed by Deputy Prime Minister John Prescott, could take effect from January if it wins Parliamentary approval.

News of the tax plan prompted British shipping line Pensinsular & Oriental Plc to state that it would put 30 ships on the British Register.

P&O chairman Lord Sterling said: "This is the biggest boost to our shipping industry in the last 20 years and makes the UK competitive again in world terms.'' P&O said it would register Grand Princess -- the world's biggest cruise ship -- and other cruise ships, ferries and container ships in Britain, according to Reuters news agency.