I thank the Deputies for raising this issue and I appreciate their concerns about this matter. I will convey the views expressed tonight to the Minister for Tourism, Sport and Recreation. I am sure he will bear in mind the impact this decision by Irish Ferries will have on tourism in the south-west.
Irish Ferries has, as part of its rationalisation process, decided to reduce the number of ports serviced on the Ireland France route. Until now the company operated out of two Irish ports, Cork and Rosslare, to three French ports, Le Havre, Cherbourg and Roscoff. The decision was taken on a commercial basis by a privately owned company and I have no function in the matter. However, I welcome the company's continued commitment to the continental route.
Maintenance of direct maritime links with continental Europe remains an important and essential strategic objective. It is my policy not only to ensure the maintenance of this link but also to expand services where possible and commercially viable. In terms of quality service provision, it is important to note that the introduction of the new vessel represents a significant upgrading. Passengers on the route to and from Ireland will welcome increased standards of comfort for what is a relatively long journey, particularly for families.
I take this opportunity to reaffirm the Government's commitment to the shipping sector under the Action Plan for the Millennium. The plan accords full recognition to the strategic importance of our shipping industry and the development of a comprehensive policy for the industry. This commitment is given concrete expression in the Department's strategy statement for 1997-99.
A number of initiatives have been undertaken or are under active consideration, including fiscal concessions such as reliefs introduced in the 1996 Finance Act. These enable vessels dry leased by Irish interests to qualify for 10 per cent corporation profits tax while double ring-fencing against tax based ship leasing has been removed. A second initiative is the refund of employer PRSI for seafarers. The provisions introduced in the social welfare regulations in 1997 represent considerable cost savings for Irish registered and controlled ships. Approval from the European Commission for this scheme has been sought and is expected shortly.
A third initiative is seafarer taxation. This issue is being discussed with the Minister for Finance by myself and by officials of both Departments in the run up to the forthcoming budget and Finance Bill. A fourth initiative deals with seafarer training. The shipboard training subsidy introduced in 1996 has helped to secure essential training placements for students at Cork Institute of Technology. These measures were taken to try to improve the situation for shipping companies. A task force to examine all aspects of seafarer training with representation from those engaged in the shipping sector, including shipowners and trade unions together with education and training interests, will commence its work shortly.
A final initiative is the duty free campaign. Several sectors of the Irish economy, including passenger ferries, have expressed concern at the possible effect of the abolition of the intra-EU duty and tax free sales on 1 July 1999 and adverse effects on revenue, employment and profitability. An initiative under the auspices of the Department of the Taoiseach involves a number of key Departments and agencies. The objective is to maximise support in EU member states to persuade the Commission to rethink the abolition policy and to highlight the issue at every available opportunity in relevant fora. The previous Government took a similar line when trying to improve the situation.
The Government's policy is fully compatible with Commissioner Neil Kinnock's communication, Towards a New Maritime Strategy, published in March 1996. It is principally concerned with the competitiveness of the EU shipping sector, establishes a definite link between substandard ships and unfair competition and emphasises the importance of training for EU seafarers. I am satisfied that the pursuit of this policy rather than the direct intervention in the affairs of individual companies offers the best prospect for enhancing the competitiveness of the service provided and the sustainable development of the shipping sector, including ferry services.
