asked the Minister for the Marine the action which the Government are taking and the EC efforts which exist to halt the decline of the merchant fleets of the member states of the EC; if there has been any progress towards the creation of an EC merchant fleet; and if he will make a statement on the matter.
Written Answers. - EC Merchant Fleets.
19.
A major package of incentives designed to promote investment in the expansion and renewal of the Irish merchant fleet was introduced in 1987. This included the enactment of the Shipping Investment Grants Act, 1987 under which grants of up to 25 per cent might be made available to Irish shipowners towards the purchase of new or secondhand ships of less than seven years old. To date grants of £3.16 million have been paid or committed towards the cost of six new ships.
The rate of corporation profit tax payable by Irish shipping companies has been reduced from 50 per cent to 10 per cent and shipping companies are now eligible to avail of the investment potential of the business expansion scheme. The latter facilitated the purchase of two vessels. The National Development Corporation can invest in viable shipping projects and the IDA can assist shipping-related service projects such as, for example, ship management and consultancy services.
Within the European Community, the EC Commission presented in June 1989 a major package of proposals designed to improve the competitiveness of Community merchant fleets vis-à-vis their third country shipping. The substantial decline in EC shipping capacity over the last decade resulted mainly from the worldwide recession in demand. Hard-pressed shipowners were in many cases forced to reduce costs by transferring their ships to international registers which enabled the employment of lower paid non-European seafarers and were less stringent in safety enforcement. The “positive measures” put forward by Commissioner Van Miert are currently under discussion at Community level and featured prominently at the recent Transport Council in Luxembourg.
The principal elements of the package include proposals to:
1. Set up an EC register for all member state ships over 500 dwt.
2. Promote research and development in new technology on board ships.
3. Reciprocal recognition of seafarers' qualifications by member states.
4. Reciprocal recognition of equipment certificates (for example, life saving appliances).
5. Tax concessions on seafarers' income and social costs in return for lower gross wage levels.
6. Improvement of the proportion of food aid shipments carried by Community vessels.
7. Expansion of port state control inspections to include working conditions of the crew.
Ireland has welcomed the proposals and will make every effort during the forthcoming Irish Presidency to ensure that agreement is reached between the member states on the early implementation of as many as possible of these important measures.
I shall be meeting with Commissioner Van Miert in the near future to discuss the package and to determine the most effective way of progressing the proposals.