Written Answers. - Shipping Industry.
Pat Rabbitte
Question:
9
Mr. Rabbitte
asked the
Minister for the Marine
and Natural Resources the steps, if any, taken or envisaged by his Department to fulfil the commitment made in An Action Programme for the Millennium to develop a comprehensive policy for the shipping industry; and if he will make a statement on the matter.
[8557/99]
(Dr. Woods): The development and expansion of an indigenous shipping industry is the key policy objective for the sector. Expansion of Irish fleet tonnage, increased employment of Irish seafarers and shore based personnel and increased maritime activities are strategic policy objectives.
The overall goal of Government policy for the shipping sector is to support and facilitate the development of a competitive Irish flagged and owned shipping sector, while maximising employment of Irish seafarers and ancillary shorebased personnel.
The key objectives I am seeking to achieve are to increase market share for Irish shipping services; to increase demand for, and supply of, well trained Irish seafarers; and to maintain and increase the Irish pool of maritime expertise because of its spin off benefits for the maritime sector generally.
The strategies I am employing to achieve these objectives include the application of a competitive fiscal regime for the Irish shipping sector and for Irish seafarers. Fiscal alleviation measures that apply in a special way to shipping are considered to be State aid and are governed by the European Community guidelines on State aid to maritime transport, published in July 1997. A range of fiscal alleviation measures are in place to benefit the Irish shipping sector.
A corporation tax rate of 10 per cent applies to trading income from certain qualifying shipping activities.
Capital allowances are available in relation to certain expenditure incurred on ships and for offset against qualifying shipping activities.
A special £5,000 income tax allowance for seafarers, who are at sea on voyages to or from foreign ports for at least 169 days in a tax year, was introduced in the 1998 Finance Act. A provision is included in this year's Finance Bill to extend this relief to seafarers servicing mobile or fixed rigs, platforms or installations in Irish waters.
Provision was made in the Social Welfare Act, 1977, which allows for refunds to certain employers in the shipping industry in respect of the employers portion of the social insurance contributions paid in respect of seagoing employees.
In the non-tax area a shipboard training subsidy is paid to students at the nautical studies department of the Cork Institute of Technology, by my Department through the institute, to help students secure places mainly with UK companies operating deep-sea fleets.
I also set up a Task Force on Seafarer Training and employment in February 1998 to capitalise on the considerable potential to create jobs in the national and international shipping sectors.
The task force brought together shipowners and operators, education and training agencies, industry and trade unions and specialists from Government Departments, including my Department. The task force presented a unanimous final report to me in October 1998 which supported in principle a joint proposal by the Cork Institute of Technology and the Naval Service to establish a new National Maritime College in County Cork.
The report also identified real opportunities for skilled seafarers at home and abroad and a widening gap between supply and demand for well qualified seafarers. In its final report the task force stressed that more detailed costings would be necessary before the National Maritime College development could proceed.
Government approval in principle to the development of the new National Maritime College for Cork, announced in October 1998 was further underpinned by the allocation of £200,000 to my Department to advance work on the costings and scheduling for the new college.
In order to progress the recommendations of the task force an interdepartmental expert working group has been established. The group comprises senior officials and technical experts from my Department, the Departments of Finance, Education and Science and Defence as well as representatives of the Cork Institute of Technology, the Naval Service and FÁS. The group will examine the costings, financing and timing of the new National Maritime College with a view to submission of a fully developed proposal for implementation to Government.
It is my intention that the group's work be progressed as quickly as possible so that the Government approval in principle can be given tangible effect in terms of an implementation plan and timeframe.
I will shortly be launching a major new promotional campaign to encourage young people to take up careers at sea and in the marine related onshore services sector, as recommended by the task force. This special £150,000 three year programme, co-financed by the Irish Chamber of Shipping, will generate interest in careers at sea and in marine related services among our young people.
The Deputy should also be aware that a consultancy review has been commissioned to examine the feasibility of developing the marine services area and increasing the size of the fleet. My Department is working closely with the consultants and the shipping industry in this study task, which I am advised is nearing completion.
