I welcome the Minister for Defence and the Marine to the House and thank him for taking this matter. Ireland is a suitable location for the establishment of a centre for international maritime business. Advantage should be taken of the opportunity that exists in the EU and world shipping to establish such a centre in Ireland. A quality shipping and maritime sector would broaden the base of the economy as a whole, the existing professional skills base and benefit other related businesses. Based on the experience of other countries which have less to offer than Ireland, it is possible to create 2,000 jobs within a decade.
The objectives of the suggestion to establish the centre are to induce leading international ship owning and management companies to establish subsidiary companies in Ireland which will create and manage all or part of their international trading fleets; to encourage the growth of the international ship owning sector operating in the European markets and also the development of an Irish deep sea fleet; to facilitate the expansion of our shipping service sector, that is, the banking, financial services, legal, shipbroking, training, maritime consultancy and the provision of technical services and others; to increase employment opportunities of professional Irish mariners in an Irish deep sea fleet in the provision of expertise to the services sector, in management and administration in shipping companies, ports and the many other areas where this expertise is in increasingly short supply. There would also be an increase in training opportunities for young people interested in a career in this vital industry.
The development of this proposal would require the establishment of an Irish open register which will provide the means by which owners and managers can be induced to place ships under the Irish flag. These shipping companies will be obliged to manage these ships from Ireland and to man them to the greatest possible extent with Irish personnel.
The inducements necessary to attract people to such a centre include: a quality register operating to the highest international standards; the provision of the appropriate tax and legal framework which would be similar to and as competitive as those already being put in place in many EU countries; careful marketing of the considerable strategic advantage we already have in the area. The implementation of this proposal would in the next decade establish Ireland as a centre of competence in all aspects of maritime business, thereby fulfilling a niche which has arisen in a growing and changing industry.
The marine services industry is an important part of the international services sector. It includes all the services required by shipowners to operate their fleets. Ship management is a service which has arisen from the growing trend among ship owners to employ professional managers to handle various aspects of their operations for them. Cyprus and the Isle of Man are centres which have taken advantage of the mobility of ship management companies. Cyprus has now over 4,000 employed in marine services, while in the Isle of Man this sector is a major employer described as the "third leg" of the island's economy.
With regard to banking, a ten ship deep sea fleet will put between $20 million and $30 million through its account. The marine services sector includes the provision of funding, leasing, equity planning and corporate advice to shipping companies. The majority of shipping related contracts are, like Irish law, based on UK law. London is the world's leading centre for the settlement of maritime law disputes, with over 1,000 lawyers employed full time in this sector alone. With its position being threatened by high costs and over elaboration, the possibility exists for Ireland to create a niche in this area.
The sector also includes shipbroking, insurance and maritime consultancy. These are services in which London is pre-eminent and in which there is also ample expertise in this country. With the development of an Irish shipping community these sectors will attract both local and international business. Other areas which derive downstream benefits from the sector include communications, air travel, travel agencies, hotel and conference facilities and training. A quality shipping and maritime sector will broaden the base of the economy as a whole, develop the existing professional skills base and benefit other related business.
Ireland has advantages to offer to the shipping industry in that it has an established marine structure and an established financial services centre together with readily available expertise in other ancillary services. Ireland is an English language EU member state in a favourable time zone. It has excellent telecommunications and ease of access to London and international air connections. It has an educated workforce with a reputation within the industry for producing officers of the highest standard.
The basic requirements needed to initiate this development include an update of Irish shipping and other relevant legislation. We require the establishment of an open register and a provision that registered ships be manned from here and manned to the greatest relative extent possible with Irish nationals. The tax legislation should allow seafarers and owners to be left outside the PRSI and tax net and special provision should be provided for capital taxation and leasing arrangements on ships. None of the allowances required would involve direct State aid and would be self-financing.
An opportunity exists in the EU and world shipping of which Ireland is well placed to take advantage. The Government and other parties involved in shipping in this country should take steps to maximise this opportunity which offers long-term, substantial and sustainable benefit. This project has been well researched and it would be remiss of me not to pay tribute to Captain Kevin Cribben, a neighbour of mine, who has done much research in this area. He is supported by his organisation, the Irish Institute of Master Mariners. I look forward to the Minister's reply.
