PRSI cut is boost for seafarers

SEAFARERS received a boost with the announcement of special PRSI concessions for shipping operators.

The move attempts to correct the current situation, where Irish seafarers are at a competitive disadvantage compared with non Irish crews. The heavy PRSI burden has resulted in many Irish shipping operators employing foreign sailors instead of nationals.

The new regime, to be enacted through the 1997 Social Welfare Bill, involves substantial reductions in the burden of Employers' PRSI for mariners on certain vessels. Concessions will apply to sailors working on ferries and merchant ships, but not to fishermen.

The Minister for the Marine, Mr Barrett, said the initiative would "significantly increase the employment prospects of Irish seafarers".

"It will also benefit Irish ship owners, who will now find it more financially viable to employ highly skilled, quality Irish seafarers.

In his Budget speech, Mr Quinn said that a review of the current income tax regime for seafarers is continuing. Changes to the regimen "will be considered in the context of the 1997 Finance Bill, said Mr Barrett.

Yesterday's measure was one of several recent Government initiatives on shipping. The 1996 Finance Act provided for a series of leasing concessions for Irish shipowners, while last April a special subsidy scheme for Irish seafarer trainees was introduced, enabling them to compete with their British counterparts for training places on UK vessels.

"These investments by the Government in the Irish shipping sector will pay dividends, not only in increased employment on Irish vessels, but also in ensuring that Ireland has the expertise and skills to develop its huge and untapped maritime potential over the coming years," said Mr Barrett.

The Irish Chamber of Shipping also welcomed the budgetary measure, saying it looked forward to details of the PRSI concessions.

The president of the chamber, Mr Brian Kerr, said the initiative "recognises the need to maintain Irish seafarers on Irish ships and helps to make Irish vessels more competitive in line with their European partners."