Dáil Éireann debate -
Tuesday, 16 Oct 2001

Vol. 542 No. 2

Written Answers. - Registration of Ships.

Michael Bell

Question:

173 Mr. Bell asked the Minister for the Marine and Natural Resources if his attention has been drawn to the transfer of ships from the Irish flag to other EU flags; the number of transfers; the countries to which such transfers occurred; the effects of this on Irish shipping; the reason for this development; if he has plans to rectify this development; and if he will make a statement on the matter. [24257/01]

Minister for the Marine and Natural Resources (Mr. Fahey)

I am aware that a small number of merchant vessels have been removed from the Irish ship register – seven in total in the year 2000. Full details are provided in the table below:

Reason for removal from Register	DateofRemoval
1SoldAbroad (Italy)	21/9/00
2SoldAbroad (Liberia)	2/10/00
3SoldAbroad (Panama)	26/10/00
4SoldAbroad (Norway)	11/5/00
5SoldAbroad (St. Vincent andthe Grenadines)	11/4/00
6SoldAbroad (Germany)	17/1/00
7SoldAbroad (Germany)	17/1/00

In the same year six new merchant vessels were added to the Irish ship register. The Government is actively seeking to expand the Irish flagged shipping sector and Irish seafarer employment in line with our development policy for the shipping industry and shipping services sector. To achieve that goal the Government has introduced a range of targeted fiscal reliefs in recent years: full refunds of employer's PRSI payments for seafarers; a special £5,000 income tax allowance for seafarers; concessions in the corporation tax area for shipping associated leases; and the introduction of a 12.5% rate of corporation tax for profits from shipping from 1 January 2001 instead of 1 January 2003, that is, two years ahead of schedule.

Discussions are ongoing with the Department of Finance and the Revenue Commissioners regarding the possible introduction of a tonnage tax for the shipping sector. In working to develop Irish based shipping and shipping services, my Department is able to call upon the services of the Irish Maritime Development Office – IMDO – the State's dedicated development agency for the shipping and shipping services sectors. The IMDO has been tasked to help my Department develop appropriate incentives and a marketing package to promote Ireland as a centre for shipping related businesses and for the registration of merchant ships.