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Dáil Éireann debate -
Thursday, 5 Mar 1998

Vol. 488 No. 3

Merchant Shipping (Miscellaneous Provisions) Bill, 1997: Second Stage.

I move: "That the Bill be now read a Second Time." The measures contained in the Bill represent an important step in a new drive to streamline, modernise and further extend our maritime law. As a seafaring nation it is essential that our shipping industry, whether large-scale commercial or recreational, is soundly underpinned with modern and up-to-date legislation. I intend to address as a matter of priority the upgrading of our legislative system to reflect fully modern requirements in relation to safety and EU and international labour rules and to bring penalties for infringements of the law at sea into line with present day norms.

The Bill increases the penalties for breaches of safety regulations; removes out-of-date constraints on, and penal sanctions for, merchant seamen; allows EU nationals to register ships in Ireland; and provides special exemptions for certain categories of small passenger vessels. The general body of maritime law has been modernised extensively in recent years. However, certain important provisions are still governed by legislation passed in the last century. This legislation clearly does not take account of important reforms introduced in the International Labour Organisation and Council of Europe and through the European Union. It also contains levels of fines which are out of date and does not provide sufficient incentives to commercial ship operators and owners to adhere to safety and environmental standards in the operation of vessels. This is unsatisfactory and I am moving to bring in specific modernising provisions to ensure that Ireland has in place a modern and efficient legislative regime for shipping.

Specifically, the Bill will increase the maximum fine for offences involving breaches of safety regulations and codes to £10,000 or two years in prison or both; remove legal constraints on seamen who engage in trade disputes — current legislation, while not enforced, can envisage criminal liability arising from participation in trade disputes; delete penal and out-of-date sanctions for disciplinary and other offences by seamen — for example, under the current legislation, seamen can be forcibly detained on board a ship by the master of the vessel where disciplinary offences have occurred; allow nationals of other states in the EU to enter the Irish register; and exempt certain small categories of small passenger boats from licensing requirements in exceptional circumstances.

The Bill will allow for the modernisation of the working conditions of seafarers and permit their involvement in legitimate trade disputes. It removes any perceived threat from out-of-date penal sanctions where seamen might engage in absences without leave, in desertion or other disciplinary offences. It also amends the Mercantile Marine Act, 1955, to bring Ireland's law on the registration of ships and recreational craft into line with the requirements of European treaties.

While certain clearly outdated provisions have remained too long on the Statute Book, l am sure the House will agree that there has never been any intention on Ireland's part to seek to circumvent or evade the application of appropriate and progressive development of international maritime law. In spirit and in practice, Ireland is at the forefront of developing progressive initiatives at IMO and EU level. We have taken steps in recent years to extensively modernise the great bulk of Irish maritime law in keeping with the latest international developments and thinking. However, sometimes priorities, particularly in the area of safety, have to be set and it can happen that the updating of certain legislation is delayed. Such is the case in relation to the amendments proposed in the Bill relating to provisions of the Conspiracy, and Protection of Property Act, 1875, and the Merchant Shipping Acts, 1894 and 1906. I propose to formally repeal and amend these provisions in order to comply fully with the letter and spirit of enlightened modern thinking.

My proposals in the Bill to widen the nationality provisions in the Mercantile Marine Act, 1955, to enable all EU citizens and bodies corporate have direct access to the Irish Ship Register follow from a recent European Court judgment. The Irish authorities' view was that the requirements of EU law were satisfied because all EU citizens and corporate bodies were entitled to enter the Irish Ship Register following incorporatisation in Ireland. However, the European Court of Justice ruled that the Irish register must be opened to direct access without the prior need to incorporate in Ireland. This legislation is, therefore, urgently needed so that we can comply with the court's judgment. However, I intend to seek Government approval as soon as practicable to further modernise the legislation dealing with the Irish Ship Register. This will, of course, be done in full consultation with all the relevant interests. I also intend to carry out a major reform of the way we conduct marine accident investigations. It is my intention that they be clearer, speedier, more relevant and, above all, contribute better to prevention of accidents and loss of life at sea.

The House will appreciate that I and my Department have been active in promoting measures to make shipping operations more competitive and the employment of seafarers more attractive. I recently instituted a major overhaul of seafarer training in Ireland so that seafarers will be second to none in quality and professionalism. More recently, I secured the agreement of my colleague, the Minister for Finance, to proposals in the Finance Bill which will, for the first time, give recognition in the income tax code to the difficult competitive position of seafarers. A £5,000 personal income tax allowance, together with a relaxation of the foreign earnings deduction scheme for certain seafarers, have been included, on my suggestion, in the Finance Bill. These concessions, together with the employers' PRSI reductions, are aimed at encouraging employment of Irish and EU seafarers on Irish and EU registered ships and will help make seafaring a more attractive career and encourage more competitive work practices.

The Commission has made approval of all these State aids to the shipping sector contingent on the present amendment regarding nationality provisions being enacted as worded in the Bill. For this reason, l ask the indulgence of the House to progress this provision in advance of my planned more comprehensive revision of the 1955 Mercantile Marine Act. As I already said, l will progress new ship registration legislation as soon as practicable.

Another important and pressing requirement is that we amend the Merchant Shipping Act, 1992. This Act requires passenger boats carrying not more than 12 passengers for reward be licensed regardless of the circumstances of that carriage. The scope of "passenger boat" in that legislation means that an employer owning or hiring a boat for the purpose of transporting his employees to their place of work must be licensed. Experience of the practical implementation of the licensing requirements indicates that the relevant section inadvertently embraces certain passenger carrying operations where licensing was not envisaged and is not deemed appropriate, such as pilot boats transporting pilots to ships, dredging operations, vessels used for dumping at sea, fish farm workboats, wildlife survey vessels and vessels used in the maintenance of lighthouses.

The provisions of that Act could also be invoked to preclude vessels from operating in emergency situations. This could hinder the work of the people who are working to prevent accidents. Persons providing a boat to the emergency services where no licensed boat is immediately available, or where it is impractical to use a licensed vessel, will not find themselves in the position of being prosecuted for providing an unlicensed boat. Safety in maritime transport is always paramount and if we are to regulate safety in passenger ferries there must be licensing and certification procedures. I am conscious of this and will ensure that any vessels exempted under the proposed provisions will meet certain minimum conditions and will not be inappropriate to the purposes for which they are used. I assure the House, therefore, that there will be no diminution in the safety of persons transported on vessels which it is proposed to exempt.

Section 680 of the Merchant Shipping Act, 1894, deals with the prosecution of offences, under that Act. I have amended the provision dealing with the level of fines and duration of imprisonment and brought the language in line with current usage. For reasons of safety and accident prevention, l am extending the provisions of the Merchant Shipping Act, 1992, to ferry boats working in chains. These are vessels which use traction power based on land and cables or chains to draw themselves across narrow sections of waterway.

It gives me great pleasure to commend the Bill to the House.

I welcome most of the provisions of the Bill, many of which were in preparation during my period in office. I am glad the Minister has an opportunity of bringing them forward in this Bill. He will agree that many of the old Acts date to the 19th century and that it is rather confusing when trying to follow legislation concerning merchant shipping. It is extremely difficult to refer to old Acts and amendments of various sections. I hope, in the not so distant future, there will be updating and consolidation of the legislation.

Shipping is far different today than in the 19th century, and repealing the penalties for seamen is to be welcomed. The conditions under which people work today are far different from those that pertained in the 1800s.

As Minister I had the pleasure of encouraging the shipping sector. I think the Minister will agree that shipping was in decline. Ireland, as an island nation, should never allow such decline or a situation where maritime skills would be lost. In the course of my examination of the industry it was clear that, with proper encouragement and some breaks in terms of the purchase or leasing of new vessels, the fleet could be increased and that there is plenty of business available to the Irish shipping industry if it is allowed compete on an equal footing with other countries.

It is in the interest of Ireland and the EU to have a common approach to safety standards, conditions of vessels, etc. Often we are uncompetitive because people are underpaid and forced to work in appalling conditions, something I regard as uncivilised in many respects, and not because we are over charging. An EU approach to standards applied within the Union is important. Those who wish to use our ports should be forced to adhere to standards set by us to eliminate the possibility of slave and cheap labour from Third World countries.

We all have a keen interest in safety at sea. From the point of view of the environment and the type of goods being carried on the sea, it is vitally important that legislation be modernised to deal with the type of catastrophes which could occur if certain standards are not applied. We have a long way to go in getting common agreement within the EU to setting standards concerning safety and the protection of the environment. Some applicant countries are being monitored by the Commission as they have very large shipping registers. It is important that before accession their standards are aligned to those currently applied in the EU. We can ensure these standards are adhered to by applying them to ships entering our ports and allowing for checks to be carried out with powers to detain vessels which fall short of them.

Another very important issue in the shipping sector is employment. It is the only such profession in which those who are trained are guaranteed a job. I compliment the work being done in Cork in training cadets for the merchant navy. I was delighted to assist them in getting experience aboard ships as part of their training, something the Government of which I was a member ensured. We have had to compete with Britain where grants were being paid to ship owners in order that cadets could gain such experience. We are turning out excellent cadets and it is delightful to see them getting very good jobs when fully qualified.

We should also take action in the context of able seamen. Perhaps the same qualifications as apply to cadets are not necessary. I hope the Minister, in approaching the training of sea persons, will ensure courses are run in second level colleges and PLCs in areas likely to attract potential applicants. It would be silly to establish training centres where people from areas of low income would have to travel or be provided with accommodation. Courses could be established in a number of vocational colleges throughout the country with standards being set in line with those of the EU. Students could receive certificates indicating completion of training and, subsequently, be taken on board ship for the latter part of their qualifications.

There is guaranteed employment in this area — in fact there is a great shortage of trained individuals in merchant shipping. This is why EU ship owners are forced to look outside the EU for labour. We should examine the area of shipping at a time when the EU is promoting employment as a key target, as mentioned in the Treaty of Amsterdam. We know there is a shortage of labour and that jobs are available. Ireland can lead the charge by setting standards and forcing the issue at the Transport Council which the Minister attends when dealing with maritime issues.

I also welcome the provision in the Finance Bill of a personal allowance for seafarers and congratulate the Minister on introducing it. I did some of the fore running for him before leaving office, but I know it was not easy and was only done after much consultation with ship owners, trade unions and the Departments of Finance and Social, Community and Family Affairs. We went some way towards reducing employer's PRSI payments in last year's Finance Act. The Department of Social, Community and Family Affairs was very forthcoming in this respect. I am delighted the Department of Finance has seen sense at last and supports the Minister's proposal. I hope that will help us ensure that Irish people have an equal opportunity of employment and that it will be attractive to people to take up the jobs that are available. When travelling on ferries, which I do frequently, one would have to listen closely to hear an Irish accent. I hope those providing that service would also see fit to employ Irish people who do excellent work and have a great tradition in the whole seafaring area. Anything we can do to encourage people back into the maritime life is welcome. As an island nation we have had these skills for centuries and it is important that we get back to using them.

I welcome the fact that a number of Irish shipping companies are doing well and indeed expanding. The whole area of short sea shipping will be developed more in the future because it is now becoming obvious in Europe that the carriage of goods by road is not always the most attractive means of getting goods from one place to another. There are proposals to put some of that traffic back on the sea. That can be done without destroying the environment or having to build or develop additional major road networks throughout Europe. There is vast potential in the shipping area for employment and for business in the future and Ireland should be prepared to avail of those opportunities as they arise.

I do not have any problems with section 2 which repeals antiquated penalties on seafarers which applied in the 17th, 18th and 19th centuries. I understand the Minister's position in relation to section 3 which allows for the registration of ships on the Irish Ship Register by companies not incorporated in this country. We must accept that is a reality now that we are part of the European Union. The fact that the companies are not registered in Ireland should not prevent them from being entered on the Irish Ship Register, provided they are resident in an EU member state and adhere to European standards. I do not see any great difficulty with that section and I am aware that the Minister is obliged to introduce it in order for us to avail of the improvements in the lot of seafarers by way of tax reductions and other State aids to the shipping industry. It is appropriate, therefore, to get the agreement of the Commission to allow us to introduce these incentives in return for updating our legislation to comply with European legislation.

I am somewhat concerned, however, in relation to section 4 which amends the 1992 Merchant Shipping Act and adds section 14a to that Act. The Minister referred to various companies transporting employees to their place of work, dredging operations, vessels used for dumping at sea, fish farm work boats, wildlife survey vessels and vessels used in the maintenance of lighthouses. My understanding of the licensing provision for passenger boats in the 1992 Act was to ensure that vessels taking to sea were in a safe and sound condition. A licence was issued by the Minister which I believe was for a period of two years, and some inspection would have to be carried out also. I have always maintained that there are sufficient marine surveyors in private practice in this country who are capable of doing that, provided they were entered on a register and approved by the marine surveyors in the Department. These marine surveyors operating in the private sector could carry out inspections provided they were properly qualified and approved by the Department. They could charge an appropriate fee for carrying out an inspection which would be done very quickly. The problem of long delays and a shortage of staff in the public sector would not arise. The marine surveyors employed in the Department could then get on with their work, which is in a supervisory capacity, in ensuring that the overall system worked properly. To ask them to inspect passenger and fishing vessels, which will need to be examined also in terms of safety at sea, is unacceptable. I urge the Minister to seriously consider this matter which I tried to progress when I was in office.

We must be conscious of the need for ongoing inspection and to provide vessels for passengers that are in a safe condition. Regardless of whether a person is employed by somebody or a paying passenger travelling to an island or whatever, the vessel should be safe. The fact that a person is somebody's employee should not mean that standards would be lower than we would expect if somebody was paying to go from A to B. I do not understand why it is necessary to include this provision provided that vessels can be inspected quickly. If somebody has a vessel which is used for dredging operations or dumping at sea, which will soon be a thing of the past because our modern legislation will prevent dumping at sea in the future — I was glad to introduce that legislation — or if a person works for the Wildlife Service or the Commissioners of Irish Lights, which have always set the highest standards in relation to safety, or if one is transporting employees in any sector, the vessels being used should be safe. The only way we can do that is to have a licensing system and, under the 1992 Act, the Minister has power to issue that licence. We are talking about passenger boats which are not licensed to carry more than 12 paying passengers. They are relatively small vessels and if they are carrying employees they should be inspected. I await to hear from the Minister on that when replying to the debate.

An exception could be made if, in an emergency, a member of the Garda Síochána, one of the Minister's inspectors or a surveyor had to use a vessel. However, we should not send out the message that if one is an employee being ferried from A to B, the vessel does not have to be inspected as if the passenger was being carried for reward. I understand what the Minister said but it does not make sense that standards should be lower simply because people are being ferried in connection with their employment. I accept, however, that the provisions of that Act could also be invoked to preclude vessels from operating in emergencies. That would be unacceptable.

I am pleased to see ongoing legislation in the merchant shipping area. From past experience, I am aware the Minister is dedicated to achieving the objectives I tried to achieve when in office, to provide greater opportunities for employment in this sector and to help the shipping industry expand and compete within Europe. I welcome the Bill, but ask the Minister reconsider the provisions in section 4 which amends the 1992 Act.

I welcome the Bill and compliment the Minister on bringing it forward. For many years legislation in the area of merchant shipping lagged behind. I recall that when I worked in that section of the then Department of Transport and Power we struggled to redraft 18th century legislation. I welcome the fact that the progress made in the past decade is continuing under this Minister, who is to be complimented.

In recent years there has been extensive modernisation in legislation dealing with merchant shipping. The Bill recognises that the position of merchant shipping is changing rapidly. The Minister is changing extraordinary and antiquated procedures. I am not sure if keel hauling is still permissible, but it will probably be abolished by this Bill. Under old legislation, a person could be clapped in irons for a certain length of time and captains had extraordinary rights. Some of the vestigial attitudes, particularly in the 16th, 17th and 18th centuries, still exist in merchant shipping legislation. It is extraordinary that, as we approach the 21st century, we are finally talking about removing the legal constraints on seamen who engage in trade disputes.

In my family there is much history of the sea. I recall stories being told about the early part of this century when men were literally left ashore in foreign ports by ship owners because they dared to become involved or encourage men to become involved in trade union activities. I welcome the fact the Minister is bringing this legislation from the 18th to the 20th century. Legislation which imposes criminal liability on a person who encourages a trade dispute among seamen has not been enforced in recent years, but it is of concern that it is still on the Statute Book and the Minister is to be complimented on getting rid of it.

I welcome the increase in fines for breaches of safety. There is always a temptation, although not by good operators — the previous speaker referred to the excellent record of Irish Lights — to operate on the margins and to adopt a loose attitude towards people's safety. Under the Bill, breaches of safety will be subject to severe penalty, as is entirely appropriate. When earlier legislation was going through the House I suggested it would be a good idea if a procedure was in place to automatically increase, in line with inflation, the levels of fines to keep them at a point where they are punitively high. Other sanctions relating to the rights of masters of vessels and disciplinary action against staff belong to the British Navy of the 18th century. They do not belong in modern merchant shipping legislation and I am pleased those provisions are being abolished.

I am surprised it is necessary to introduce a change to allow nationals of other EU states to enter the Irish register. I would have thought that under the provisions relating to freedom to provide services, the right to establish the relevant articles of the Treaty of Rome would have existed because of case law in the European Court, but the Minister is making prudent provision for an innovation. As long as operators entering the Irish register operate to the highest standards, additional shipping companies will be welcome on the register. It is not many years since the potential problem was that there would be virtually no Irish registered shipping.

The Minister referred to two matters which I welcome. I am aware from contacts with Deputy Barrett when he was in office that he was anxious to introduce a taxation measure for seamen. That is a long overdue provision. It helped contribute to the fact that there are many people unwilling to undergo the rigours of life as a seaman. I compliment the Minister and his predecessor on the work in that regard. The Minister has been involved in a number of initiatives on seafarer training and I welcome those initiatives. It is pathetic that, as an island nation, we may have to look abroad to recruit people to our Naval Service. That is bizarre and it should not happen. The Minister is right in recognising that this matter needs attention.

I suggest the Minister might go a little further. Cadet training and officer training is very important. The thinking always was that if the officer corps existed, the remaining crew could be put together with relative ease, but there is need for non-officer training, for training of able bodied seamen and deck crew. There are jobs in that area. There are towns with seafaring traditions where there are high levels of unemployment and, with relatively small investment, young men and women could be brought into the merchant shipping sector.

In addition to the initiatives that have been taken, perhaps the Minister, in co-operation with vocational education committees, Regional Technical Colleges and new colleges of technology, will put in place, even on a pilot basis, a number of schemes. I hope I will be forgiven for being parochial, but I would mention County Wicklow VEC which has been seeking co-operation for a training programme based in Arklow, a town with a fine seafaring tradition and with one of the biggest private fleets in the country. From talking to shipping operators there and to the VEC and Regional Technical College, there is potential in that area. If the Department takes the initiative in that regard, valuable training could be introduced for seamen without huge investment.

I share the concern about section 4. Obviously in the case of an emergency one does not want to be bureaucratic and interfere with an emergency service, but if employers, particularly unscrupulous employers, are released from their liabilities and responsibilities there could be a catastrophe in the event that a non-seaworthy vessel is used to ferry workers. I am aware the Minister is as concerned as I and other Members on the issue of safety, and while I generally welcome the Bill I have a niggling doubt about that provision.

I thank the Deputies who spoke in the debate. Deputy Barrett recognised many of the provisions in the Bill because when he was Minister for the Marine he was anxious to see them brought forward. He is happy to see them introduced now. I agree with the Deputy that consolidation should be done wherever possible. I have always been keen on consolidation and I am trying to undertake some at present. Knowing the difficulties, I will do everything possible to advance consolidation in this area.

I am aware of the Minister's difficulties.

The Deputy is also aware that I introduced two consolidation Bills when I was Minister for Social Welfare. Much legislation will be brought up to date in the larger Bill to follow. It will then be easier to consolidate thereafter.

I agree with the comments made by Deputy Barrett regarding the fleet and increasing the fleet and employment. The Irish fleet is diminishing and the numbers employed have been diminishing substantially. That is wrong because we are a maritime country.

I am glad that when Deputy Barrett was Minister for the Marine he secured improvements in PRSI and I am happy that we have secured financial agreement which recognise the needs in this area. While there are many technicalities to be resolved it will lead to an improved and more competitive position for our shipping and for those who work on the boats, not only the cadets — I agree with Deputy Barrett's remarks here — but for the able seamen, where there are many jobs and where we have a great tradition in that area.

Deputy Barrett and Deputy Roche mentioned the vocational education committees. I will keep their views in mind. It is an area that should be followed up. I will refer it to the task force which has been established to look at the whole training issue because it is so important. It will urgently undertake its work. The suggestions made here are relevant to its deliberations. For example, Deputy Barrett's suggestions about engendering an interest in going further with VEC, PLC and further specialised courses will be pursued at EU level.

Deputy Roche referred to the position in Arklow, which has an important seafaring tradition. The vocational education committees could have a function there and they should be approached. The task force will also deal with that area.

With regard to the section 4 issue, provision was made in the Bill because difficulties arose with the implementation of the 1992 Act. It was felt that flexibility was needed in these areas and that it would be adequate for a Minister to introduce regulations to cover them without legislation. Some of these areas have special circumstances which need to be catered for. I will look closely at this for Committee Stage when the matter can be discussed further.

I have explained the question of entering the register. We require companies to be incorporated in Ireland. Deputy Barrett referred to the marine survey officers and the inspections. It did not take me long in office to have similar views. I am looking at the matter. It is a good and realistic idea. We will look at how it is done because there is no point in saying we cannot cover various things if they can be covered in other ways.

Question put and agreed to.
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