Dáil Éireann díospóireacht -
Thursday, 23 Nov 2000

Vol. 526 No. 5

Written Answers. - Shipping Industry.

Jack Wall

Ceist:

24 Mr. Wall asked the Minister for the Marine and Natural Resources if his attention has been drawn to concerns expressed by the Irish Exporters Association regarding the state of the shipping industry and particularly its suggestion that the industry needs to be re-energised; the plans he has for the development of the shipping industry; and if he will make a statement on the matter. [26915/00]

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

I am aware fully of the concerns of the Irish Exporters Association concerning the shipping industry and I share their view that the sector needs regeneration. The Government is committed to the development of our maritime sector as highlighted in the Government's Action Programme for the Millennium, as reviewed in November 1999.

To further the development of our shipping industry the Government set up by statute last December a new dedicated Irish Maritime Development Office, within the Marine Institute, with the following remit: to promote and assist the development of Irish shipping and Irish shipping services; to promote Ireland as a centre for ship registration; to develop and implement a strategic framework for the shipping industry and its ancillary service sector; and to liaise with and support the industry and advise on policy initiatives and overhaul of the legislative framework for the mercantile marine so as to underpin industrial development and safeguard and generate employment.

An expert advisory group for the IMDO, comprising representatives of the shipping industry and shipping services sector, IDA Ireland, independent financial, legal and business people and Departments, chaired by Mr. Padraic A. White, was formally established in December 1999.

The IMDO has presented its first report to me which, inter alia, sets out proposals aimed at promoting the development of Irish shipping and shipping services and at attracting to Ireland additional marine related service sector operations and major players in the sector's manning, technical, chartering, legal and financial areas. The report is being considered in the context of the forthcoming budget and in the light of EU policy concerning State aids for maritime transport.

The Government's purpose in setting up the IMDO is not just to encourage the growth of the Irish merchant fleet, but also to facilitate the growth in Ireland of a wide range of shipping related services: ship financing, insurance, chartering, brokerage and maritime legal services. This growth will be achieved through the development of existing Irish services and the attraction of such services from abroad and an overhaul of the legislative framework governing merchant shipping.

The Deputy can be assured that I support the case of the industry for incentives and fiscal measures beyond those already in place in terms of corporation tax, income tax allowances for seafarers and PRSI refunds to their employers. I am also looking at the possibilities for modifying the existing reliefs to make them both more attractive and more effective. My Department is particularly monitoring the introduction and application of tonnage taxes in Europe and factoring this in to ongoing discussions with the Department of Finance on the development of an appropriate fiscal regime for our shipping sector.

In May last the Government formally approved the establishment of a new national maritime college costing some £30 million. The new college will be a state-of-the-art centre of excellence for maritime training, capable of meeting Ireland's seafarer training needs into the future. It will service all the needs of the merchant marine and Naval Service in a unique collaborative venture between the Navy and the Cork Institute of Technology. I am advised that by mid 2001 the Department of Education and Science expect to be in a position to go to the market with tenders for the construction of the college.

There are signs of confidence returning to the sector underpinned by these Government initiatives. We especially welcome the commissioning by Irish Ferries of the world's largest cruise ferry.

I believe that with the developments which I have outlined, our shipping sector will be well positioned for the future and we can look to it to capture real opportunities and generate new and sustainable jobs.