Tomás MacGiolla
Question:48 Tomás Mac Giolla asked the Minister for the Marine the plans, if any, he has for the further development of the Irish merchant shipping fleet; and if he will make a statement on the matter.
Written Answers. - Merchant Shipping Fleet.
A feasibility study to examine Ireland's sea and air access transport requirements has been under way for a number of months.
The study, which examines the means by which disadvantages associated with peripherality can best be combatted, has been jointly funded by the Government and the European Commission. Its findings, which are expected shortly, will assist in determining future policy options in relation to shipping. Until the consultants have reported and the Government has studied their conclusions, it would be inappropriate to speculate on future measures which may be introduced.
I can assure the Deputy however that this Government considers the maintenance of a profitable and efficient Irish merchant fleet to be a major priority. In 1987 a package of incentives was introduced to encourage investment and expansion in the industry. The Shipping Investment Grants Act, 1987 provides for grants of up to 25 per cent of the purchase cost of new or second hand vessels up to seven years old. In addition, corporation tax levied on shipping companies has been reduced from 50 per cent to 10 per cent. This has enabled shipowners to channel profits into the acquisition of additional tonnage. Shipowners may also avail of funding under the business expansion scheme.
This commitment to the Irish shipping industry has resulted in an increase of more than 40,000 tons in the capacity of the Irish fleet over the past three years. This represents a percentage increase of almost 30 per cent over the period.