Vol. 442 No. 4
31 Mr. Barrett asked the Minister for the Marine the plans, if any, he has to maintain and expand the Irish-registered merchant fleet to maximise the job opportunities in the shipping sector, to improve services available to customers and to ensure the highest standards of safety.
47 Mr. Hogan asked the Minister for the Marine the proposals, if any, he has to assist job creation in the Irish flag merchant Fleet.
64 Mr. Gilmore asked the Minister for the Marine the plans, if any, he has to provide this country with a merchant shipping fleet; and the plans, if any, there are at EU level to establish a European Merchant Fleet.
I propose to take Questions Nos. 31, 47 and 64 together.
In line with the Programme for Government, I am reviewing ways in which the operating climate for the shipping sector can be enhanced to support the objectives of improved services, standards, modernisation and the ability to compete of the Irish-registered fleet. The strategic objective is to enable Irish shipping companies to meet international competition under comparable cost conditions but without compromising on safety. The intention is to ensure the maintenance and creation of employment in the sector and to facilitate productive investment to modernise and expand the fleet.
The review is being conducted in full consultation with the industry. However, to further inform this process the Department plans to commission an economic evaluation of the sector shortly which will also address the case for additional support measures conducive to an efficient and competitive shipping industry. In that context the various incentives currently available to shipping sectors in certain other EU member states are being examined. These can lead to a distortion of competition between EU carriers themselves, but it is the case that considerable differentials in operating and manning costs place European shipowners generally at a distinct competitive disadvantage vis-à-vis flags of convenience. The pressures on European, including Irish, shipowners to move such registries which offer liberal tax and operating regimes are considerable and growing.
There is recognition at EU level of the need for positive measures to assist European shipowners in a harmonised way in order to meet the competition challenge and maintain employment while ensuring the highest safety standards. Commission proposals on this issue are being actively discussed with a view to identifying and, more importantly, agreeing possible ways forward. Our policy review is being undertaken with full regard for EU shipping policy trends and objectievs.
I am determined to ensure the continued viability and growth of the Irish shipping industry to service the needs of Irish importers and exporters and as an employer and revenue earner in its own right.
I am glad the Minister's objective is growth of the shipping sector and the creation and maintenance of employment. They are very noble objectives, but Government policy is resulting in a loss of employment. For example, in the sell-off of the B & I line to Irish Continental Group promises were made and commitments given that employment would be protected, that it was in the best interests of workers, and employment, and that it would allow the company to become more suitable to attract EU investment for mobile assets. However, since then up to 400 jobs have been lost. The Minister and his Department have shown disregard for the unions involved by not meeting them to discuss these issues and honour the commitments given at that time?
We may be going beyond the bounds in this question.
It is obvious the Deputy, like others, is extremely well briefed on this matter and I have no objection to that; it is a very important part of the democratic process. However, pressure does not work with me. As the Deputy is aware, I meet four or five deputations each day. I am very well versed on all the issues raised. It is my intention, and that of the Taoiseach and the Government, to address as a matter of urgency the need for competition on the central and southern corridors and I will continue to implement Government policy in that regard.
The policy objective, in line with overall European Union objectives, is to ensure that Irish shipping companies meet international competition under comparable cost conditions and to stem flagging out from the Irish register to flags of convenience where costs are considerably less. The corollary of this is the need for a strategy to ensure that the Irish register becomes more competitive vis-à-vis international and European registers without compromising on safety, including manning standards. The benefits of such a strategy include direct and indirect gains to the national economy through shipping activities, maintenance and creation of employment in the indigenous shipping sector, new productive investment in the fleet, assurance of indigenous maritime expertise and maintenance of safety standards. Direct employment in the Irish shipping sector amounts to 1,581, of which 1,259 are nationals and 322 non-nationals — the source of that information is the industry.
On the Minister's comments about the support available for shipping fleets of our EU neighbours, what proposals has the Minister for progress in that regard? In our efforts to be super-Europeans we are extremely reluctant to offer to the Irish similar incentives to those available to industries in other countries. In the excellent brief we received this morning from SIPTU it was pointed out that in the Netherlands, France, Germany, Greece and Portugal subsidies are available to the shipping industry. What progress is the Minister making to ensure that similar grants and subsidies are available here? This is one area in which we must try to keep up with the Jones's if we are to maintain jobs and create further job opportunities. Since our competitors are given grants and subsidies without breaking EU rules and regulations, what will the Minister do to ensure that similar grants and subsidies are available here?
I was represented at the meeting in Buswells Hotel, which the Deputy attended.
First hand information.
I keep in contact with the industry. On the incentives or positive measures which are acknowledged as necessary for the maintenance of the Irish and EU fleets, the Commission has made a number of successive proposals aimed at promoting attractive and harmonised conditions to enhance the competitive position of member state fleets. These include income tax exemption for seafarers, alleviation of social security contributions, company tax measures and manning in the context of a European ship register, EUROS. Agreement has not yet been reached on these measures.
In the meantime member states have continued to provide incentives to varying degrees to their own shipping industries, as the Deputy properly stated. These include a variety of financial and operational support measures. Ireland lags behind a number of member states in the level of direct and indirect assistance available to this sector. Production and operational costs are seen by the industry as essential if it is to improve competitively vis-à-vis other operators. The differences in manning costs is only one of the reasons that operating costs for ships under the Irish flag are higher than on the open register flags and certain EU flags, many of which now operate a second register.
Will the Minister, who is well briefed on the issues affecting the industry, give an undertaking to the House — a similar request has been made to him on many occasions in recent months — to discuss with the group of unions involved the issues raised today and the commitments entered into some time ago? Will he give a commitment that he will meet them at the earliest opportunity to tease out the issues and to give the necessary assurances to that group of people who are worried about their future?
I understand the concern within the industry and indeed of the unions involved, but I am not in a position to give any commitment in regard to an imminent meeting.
