Ireland is the "odd man out" in the current revival of the European maritime industry due to this Government's failure to introduce financial incentives, according to the former IDA chief, Mr Padraic White.
Almost every other memberstate except Ireland availed of positive EU Commission guidelines, issued in 1997 to boost the sector, Mr White says. While this Government has declared its ambition to foster shipping services, the reality is the industry here faces "a continuous and catastrophic decline", he says.
Mr White, chairman of the advisory group to the Irish Maritime Development Office (IMDO), made his comments in an address to the Chartered Institute of Transport in Ireland.
The industry had declined by almost 50 per cent since 1980, and would "virtually disappear" unless measures were taken to allow it to compete with incentives offered in other EU states, he said. Lack of action would "make a mockery" of the rationale for establishing the £30 million (€38 million) national maritime college, which is planned for Ringaskiddy in Cork, he added.
The IMDO and its advisory group were established in 1999 by former marine minister, Dr Michael Woods, with a legislative remit to promote and assist the development of Irish shipping, ship services and seafarer training.
Two years previously, the Commission had issued specific guidelines regarding State aid to maritime transport to halt the decline across the community.
The Commission is alarmed by the fact that the EU registered merchant fleet dropped from 30 per cent of global tonnage to 12 per cent last year. The advisory group presented its report to the current minister, Mr Fahey, last autumn. It calls for:
the introduction of a tonnage tax, or flat absolute tax per tonne of vessel;
a modern, commercial ship registration system;
an improvement in seafarers' tax allowances;
appropriate training; and
provision of ship financing from an Irish base.
