Review of tax regime to boost shipping

The Government has commissioned a review of the tax regime applying to shipping in a bid to arrest the decline in the industry. A "complete overhaul" of merchant shipping legislation has also been ordered by the Minister for the Marine and Natural Resources, Dr Woods, who has described the legislation as "restrictive and archaic".

Speaking at the opening of the Department's new Irish Marine Development Office (IMDO) yesterday, the Minister said that an expert group comprising officials from the Departments of Finance, Marine and Natural Resources and the Revenue Commissioners would conduct an assessment. The group will consult the shipping sector - which has long argued for a change - and the trade unions.

Forecasts suggested the world shipping sector will double in the next 15 years, but there are less than 50 commercial vessels on the Irish ship register and just over 1,200 people employed in seafaring. It was time that Ireland took "its rightful place among the world's maritime nations", the Minister said yesterday.

The Minister emphasised that the European Commission was actively promoting the European shipping sector through its state aid guidelines, so allowing member-states to introduce highly favourable tax regimes for seafarers and shipping companies.

"This is an indication of how seriously the Commission regards competition from low cost, non-EU shipping interests, and the need for the EU to maintain a vibrant and growing maritime sector," he said. "Other EU member-states have facilitated the expansion of their maritime sectors - now it is our turn. We must capitalise on our well-educated, entrepreneurial and young workforce," Dr Woods added.

The advisory group to the Irish Maritime Development Office is chaired by former IDA managing director, Mr Padraic White, who is also handling the Government's review of the EU Common Fisheries Policy. "The IMDO will encourage the expansion of the Irish merchant fleet, and the maximum participation of Irish firms in providing specialist shipping services," Mr White said.