Seanad debates

Tuesday, 15 April 2014

Merchant Shipping (Registration of Ships) Bill 2013: Second Stage

 

Question proposed: "That the Bill be now read a Second Time."

3:35 pm

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I am pleased to introduce the Merchant Shipping (Registration of Ships) Bill 2013, for the consideration of the House.
This Bill is the latest initiative being progressed in the interest of developing an updated and enhanced legislative code for the national maritime sector. The maritime industry and environment is of importance to Ireland as an island and a trading nation. My priorities are to ensure the safety of maritime transport services, the protection of the marine environment and to encourage the development of the shipping sector. The Bill puts maritime safety at the centre of an updated ship registration regime in Ireland. Safety at sea is a vital issue for all those who venture on to the water and this new registration Bill can make a difference in that regard. It will replace the current regime that dates from the 1950s, both in legislation and in the supporting administrative service. In particular, it will link registration in a more direct manner to safety, enhance the accuracy of the central record of ships on the Irish flag and by helping to identify more ships in our waters, it will assist search and rescue operations and contribute to the saving of lives. These are welcome developments.
The introduction of a replacement ship registration Act and the associated IT project were identified in a 2012 value for money review of the marine survey office of my Department as having the potential to give rise to efficiencies. The Bill is the culmination of a review that involved extensive public consultation, meetings with stakeholders and engagement with relevant Departments. This took place against a background of international growth in maritime trade, an increase in the use of pleasure craft and an increasing emphasis on safety, security and environmental issues both at a European and international level.
International maritime obligations for Ireland arise from the UN Convention on the Law of the Sea, the International Maritime Organisation, the International Labour Organisation, the Paris memorandum of understanding on port state control and the European Union. In recent years there has been a determined effort by the International Maritime Organisation and the European Union in particular to enhance the safety of ships and to prevent pollution from ships, by addressing the issues of substandard ships and the obligation on states with regard to ships that fly their flag. Ireland is committed to having under our flag a fleet which is safe, secure and seaworthy. This can be enhanced by linking registration, where appropriate, to statutory safety and certification requirements.
In addition to obligations under the UN conventions, Ireland is a member state of the Paris memorandum of understanding on port state control. This consists of 27 national maritime administrations and covers the waters of the European coastal states and the North Atlantic basin from North America to Europe.
The Paris memorandum maintains a White list of top-performing shipping states in the world. In 2009, Ireland was admitted to this list in recognition of the improvements that had been made in safety standards aboard Irish-registered ships.
I will outline the background and context for the current proposals. I refer to the Merchant Shipping Acts 1894 to 2010. The Bill before the House seeks to update one element of an extensive code of maritime legislation dating back to 1894. The collective Merchant Shipping Acts 1894 to 2010, deal with safety of life at sea and regulate vital maritime safety matters, including the construction, equipment and operation of ships, radio installations, navigation and tracking systems and the life-saving safety appliances to be provided. The provisions of the Merchant Shipping Acts govern passenger and cargo ships, passenger boats, fishing vessels and leisure craft.
Under the related Mercantile Marine Act 1955, my Department is the national authority with responsibility for the registration of Irish ships. That Act was amended in 1998 by the Merchant Shipping (Miscellaneous Provisions) Act, and in 2006 by the Sea-Fisheries and Maritime Jurisdiction Act. The 1955 Act, as amended, provides for the national character, ownership and registry of Irish ships, as well as for the mortgage, sale, transfer and measurement of tonnage of such ships and other connected matters. The existing register of Irish ships is primarily a means for the registration of ship ownership and accompanying financial interests.
Under the provisions of the Mercantile Marine Act 1955, ships wholly owned by an Irish citizen or an Irish body corporate are obliged to register. There are some exemptions to this obligation, including, ships not exceeding 15 net tons which navigate in particular areas; sea fishing boats less than 15 m length overall; ships owned by Irish citizens not ordinarily resident in the State. The Act does not apply to the Naval Service. The 1955 Act assigns a statutory role in ship registration to the Revenue Commissioners, who have appointed registrars of ships to administer the registration process.

Each registrar maintains a register book to record all registration transactions that occur in respect of the port of registry for which he or she is responsible. A ship owner can choose a port of registry from among 13 designated ports. The local registrars hold all of the original official records of registration of ships but send details of entries in the register books to the mercantile marine office of my Department. There are currently more than 3,200 ships registered in Ireland on the national ship register.

There are gaps in the existing legislative framework in that there is no specific power to remove unsafe and unsuitable ships from the Irish register, there are no provisions allowing for registration for specified periods or purposes or for renewal of registration, and the penalties are outdated. In addition, registration is not centralised and paper records make it difficult to access information, generate reports or gather and produce statistical information about the Irish fleet.

Before I go into the detail of individual sections of the Bill, I would like to highlight some of the main changes proposed. The Bill provides a comprehensive re-fashioning of the legal framework around ship registration in the State. The main purposes are to establish a framework for a modern and comprehensive ship registration system including a basis for a new centralised electronic national ship register, and to require additional categories of ships to be registered, with provision for the introduction of ship registration renewal, removal from the register, and improved enforcement powers. Under the Bill, with a few exceptions, all ships operating domestically will have to be registered on the Irish register of ships or to have a current valid registration conferring nationality from another country.

The term "ship" is used in the Bill, and is very broadly defined to include all types of vessels from commercial cargo ships to small angling boats once they have some form of engine or method of propulsion other than oars. A new and expanded Irish register of ships will be created, consisting of different parts for the registration of different types of ships and for different registration purposes. For example, one part may consist of new passenger or commercial ships and larger recreational craft, another part of fishing boats, and another part of vessels that require short-term visitor registration. It will be possible to establish different parts of the register at different times. The specific requirements for different types of ships to be registered in each part will be set out in regulations. The Irish register of ships will be maintained by my Department and the Bill allows for officers of my Department, the Revenue Commissioners and another Minister or a State agency to be designated as registrars of ships. It will take some time to establish the new register and the supporting regulations, following enactment of the Bill, and it is likely the various parts of the register will be introduced on a phased basis.

The Bill introduces a ship registration requirement for fishing boats less than 15 m in length, personal watercraft such as jet skis, small fast-powered craft and some small angling boats. This will mean that, subject to a small number of exemptions, all ships operating domestically will be required to be registered. "Operating domestically" means operating on any voyage which is wholly or partially in Irish waters, other than an international voyage that does not originate or terminate in the State. The inclusion of personal watercraft and small fast-powered craft reflects the growth in their use in recent years and the need to exercise some degree of control over them in the interests of public safety. Reports from the Marine Casualty Investigation Board have identified incidents of marine casualties involving recreational craft, with recorded incidents involving jet skis causing deaths in 2003, 2006 and 2007, and involving fast-powered craft, in 2010, 2011 and 2012. This is not regulation for its own sake. The Marine Casualty Investigation Board, which is independent of my Department, has recommended the registration of jet skis on a number of occasions. This Bill makes that a reality.

Irish Coast Guard statistics for 2013 show that incidents of jet-skis requiring assistance were up 189% on 2012 due, in part, to the fine weather. These vessels are considered high risk. Registration will assist in the identification of owners and thereby act as a support to general maritime law enforcement and make it easier to prosecute offending users. A simple form of registration is envisaged for personal watercraft and small fast-powered craft operating domestically. Registration will also be extended to fishing vessels less than 15 m in length overall and to certain angling boats to underpin compliance by these vessels with safety standards.

As a result of the new provisions, exemptions from the requirement to register will apply in future only to recreational craft less than 24 m in load line length, other than personal watercraft and small fast-powered craft, and to warships.

A system of visible registration is proposed for recreational craft 24 m in load line length or greater, personal water craft and small fast powered craft where such vessels are not registered in another country and which operate in Irish waters for a short period. This will be a simplified form of registration for a nominal fee. It will reflect the short-term nature of this type of registration so as not to impact negatively on maritime tourism.

Ship registration renewal, the capacity to refuse ship registration or remove ships from the register, is proposed in order to improve the quality, integrity and accuracy of the Irish Register of Ships. Following initial registration, there will be a requirement for renewal after a period of up to five years and at intervals of up to ten years thereafter.

Improvements to enforcement provisions include increases in penalty levels as the existing penalties date back to 1955 and are at a maximum of €635; a power of detention given to surveyors for ship registration related offences; the introduction of a system of fixed payments for certain offences involving personal watercraft, small fast powered craft and smaller angling ships; and the designation of authorised persons for enforcement purposes to include surveyors of my Department, members of An Garda Siochána, officers of the Revenue Commissioners, sea-fisheries protection officers, authorised officers of Inland Fisheries Ireland, certain Defence Forces personnel and officers of the Irish Coast Guard.

The overall approach taken in the Bill is to establish a comprehensive legislative framework to provide for the detail of ship registration requirements through secondary regulation which facilitates further enhancement and evolution in the future as the need arises. The supporting framework of secondary legislation will be finalised following enactment of the Bill. This approach will provide flexibility for the maritime administration and facilitate a speedy and appropriate regulatory response to change in the sector within the overall principles and policy parameters of the Bill, including to emerging policy concerns and requirements and operational priorities at national, EU or international level.

It is important to have an efficient and effective registration system for ship owners and, in line with the Government's commitment to e-government, I am taking the opportunity to develop an electronic register and online services, where possible. Alongside the new legislation, a new electronic Irish Register of Ships is being developed to move a primarily paper-based system spread over eleven locations to one central electronic system and to modernise the registration process. This will facilitate a more efficient registration service for ship owners, easier management of the register and an accurate record of ships on the Irish flag. It will also allow access to the register for certain State agencies and, in a limited way, the public for information on the registration of vessels. It will enable many applications for registration to be started online and it should be possible to substantially complete many straightforward renewals and declarations in this way.

I will now outline the main provisions of the Bill. They are also set out in the explanatory memorandum that has been circulated to Senators.

The Bill is divided into nine Parts and has four Schedules. Part 1, sections 1 to 8, inclusive, sets out a number of standard provisions, including interpretation, fees, expenses, regulations, repeals and revocations.

Part 2 covers the registration of ships. Sections 9 to 32, inclusive, establish the framework for the new Irish Register of Ships, the new ship registration process and administration. The new central electronic Irish Register of Ships to replace the existing paper-based register books will be established under section 9. The register will consist of different parts to facilitate the registration of different types of ships and their particulars in each part, the detail of which will be set out in regulations. As I have mentioned, registration will be for an initial period of up to five years, subject to compliance with standards and-or conditions of registration. After the initial period of registration and subject to satisfactory completion of the registration renewal process, a registration may be renewed for further periods of up to ten years. The section also provides for the making of regulations in relation to access to the register and amendments to the content of the register, when necessary. The provisions allow the register to be kept in different formats, including electronic format.

Section 10 provides for service agreements with State agencies to undertake elements of the ship registration administration process, if the need arises in the future. It is not envisaged, however, that the entire ship registration process will be outsourced, given our international responsibilities under the United Nations Convention on the Law of the Sea and the need to retain control over the registration of ships on the Irish flag.

Section 11 sets out the requirements for ships to register on the Irish Register of Ships when operating domestically or to have a current valid registration conferring nationality from another country. It also sets out which ships are exempt from registration. The registration requirement will apply to all passenger and commercial ships; recreational craft equal to and greater than 24 m in load line length; fishing boats that hold or are required to hold a sea-fishing boat licence granted under the Fisheries (Amendment) Act 2003; personal watercraft such as jet skis; small fast powered craft, and certain small angling boats that are exempt from the requirement to have a passenger boat licence.

These requirements will also apply to State-owned ships in the relevant categories but warships will continue to be exempt from registration. Other than the small vessels already mentioned, registration is not proposed for recreational craft less than 24 m in load line length and used exclusively for non-commercial recreational purposes.

Ships on the new register will be required to have their operations controlled and directed from within the State. The capacity to establish different parts of the register at different times will facilitate a phased implementation of mandatory registration. This element of the Bill recognises important practical issues that require resolution before the ship registration requirement is introduced to additional ship categories.

Section 12 sets out the principles under which ships may be entitled to be registered on the register. These include the qualification of the owner, the compliance of the ship with prescribed conditions or other requirements, such as safety, environment and security, type, age, size and trading pattern. These provisions will reinforce the standards required for registration and allow the State to exercise control over the condition of ships that choose to register on the Irish register of ships. Section 14 contains transitional provisions for the automatic transfer of Irish ships which are on the existing register books to an appropriate part of the new register for an initial period of up to five years. These transfers will be free and, subject to compliance with the requirements of the Bill, the ships can be considered for renewal of their registration after that period. The section also allows applications for registration which have commenced under the 1955 Act before its repeal to be considered under that Act.

Section 15 lists the categories of persons qualified to register a ship on the Irish register of ships. These include an Irish citizen, a national of another EU member state and certain corporate bodies. Section 16 requires a qualified person who is not resident in the State or who does not have a registered office in the State to appoint a representative person who resides or has a presence in the State. Section 17 provides for the appointment of registrars of ships and allows for the continuing involvement of the existing registrars. The current statutory arrangements for the registration of ships involving officers of the Revenue Commissioners will continue in the short term until such time as the new register is in place and the relevant provisions of the Bill and subsequent regulations are commenced.

Sections 18 and 19 provide a framework for ship registration applications and renewals. Regulations may be made on the administrative aspects of applications, including procedures, information, declarations and documentation. Section 20 requires the measurement of ships for the purposes of registration and the issuing of a certificate of measurement. Section 21 provides for the refusal of ship registration and introduces specific provisions to allow for the removal of a ship from the register in a range of circumstances, including those relating to safety, pollution prevention, qualified persons and compliance with standards and conditions. These measures are being introduced in the interest of preserving the integrity of the register.

Section 22 provides for an appeal process in certain circumstances where it is proposed to refuse to register a ship, renew a ship registration or remove a ship from the register. Section 23 provides for temporary registration and allows qualified persons who normally live in the State and who purchase a recreational craft under 24 m in load line length outside the State to register the recreational craft on a temporary basis for the purpose of bringing the craft from abroad to a port in the State.

Section 24 deals with visitor registration. By requiring categories of ships operating domestically in Irish waters to register if they are not registered in another State, we must take into account the position of visitors to our shores who might choose to travel with their own recreational craft. Such craft will not necessarily be registered in another State, as registration requirements vary internationally. For this reason, section 24 introduces a particular category of visitor registration for personal watercraft, recreational craft 24 m and greater or small fast powered craft, which are owned by visitors to the State and are being used in Irish waters for up to three months. Such a short-term visit to Ireland will not require full registration on the Irish flag, as would otherwise be required under section 11 of the Bill, and visitor registration will not confer Irish nationality. A simplified form of registration is envisaged and for a nominal fee. The details of the visitor registration application requirements and procedures will be set out in regulations.

Sections 25 and 26 of the Bill set out the requirements for the naming, carving and marking of ships with a range of matters, such as the official name or number of the vessel or the port of registry. Sections 27 to 29, inclusive, address issues regarding certificates of registry and requirements for carrying documentation on board the ship.

These provisions reflect the importance of the certificate of registry, particularly in cases of full registration where it is the primary document that testifies to a ship's nationality and ownership.

Sections 30 and 31 concern ports of registry. They retain the 13 existing ports of registry, as well as providing for future changes in this area. Low levels of activity at certain ports of registry and future streamlining associated with the introduction of a new central electronic Irish Register of Ships will mean that ports of registry will remain in name only, rather than being a location for a ship registration office.

Part 3 relates to Irish ships, their national colour and character. Sections 33 to 38, inclusive, clarify which ships may be known as Irish ships and the requirements in relation to the flying of flags by such ships. Based primarily on the existing legislative requirements, it includes prohibitions on hoisting flags other than the national flag, pretending to be an Irish ship, concealing Irish character and assuming foreign character. Ships holding visitor registration under section 24 will not be known as Irish ships and it will also be possible to provide that ships on the register of other categories or types, when not operating domestically, will not be known as Irish ships.

Good enforcement is important for all legislative provisions and Part 4 aims to update and improve enforcement for ship registration. Sections 39 and 40 provide for authorised persons and their powers. For practical operational reasons, a range of State personnel who are likely to come across breaches of ship registration requirements in the course of their normal day-to-day work will be designated as authorised persons under the Bill. Section 41 introduces powers of detention for surveyors in relation to a ship in a port in the State or Irish waters, or an Irish ship in a foreign port, where breaches of specified sections of the Bill arise.

Section 42 provides for a system of fixed payments in lieu of prosecution for certain offences involving failure to register smaller ships such as personal watercraft, small fast powered craft and certain small commercial angling boats. Similar to existing fixed payment regimes under other maritime legislation, fixed payments of €150 or such other prescribed amount are provided for, to be paid within 21 days of the notice. If payment is not made, a prosecution may be brought by the local authority concerned, Inland Fisheries Ireland or the Minister for Transport, Tourism and Sport, depending on who served the fixed payment notice. Given the large numbers of smaller ships that may be involved, this is considered to be a more practical approach to enforcement than court prosecution for such registration offence cases.

Sections 43 to 47, inclusive, carry forward some general legal provisions in the Mercantile Marine Act 1955 relating to documentary evidence and declarations in relation to ship registration. Part 6 concerns private law provisions. This Part of the Bill carries forward and updates, where necessary, a range of private law provisions for registered ships that were contained in the Mercantile Marine Act 1955. Sections 48 to 62, inclusive, relate to title, ownership, transfers of ships and mortgages on ships.

Part 7 relates to proceedings. Sections 63 to 67, inclusive, contain provisions relating to proceedings for offences under the Bill, summary penalties and the liability of both the owner and the master of a ship when certain offences are committed. Section 63 provides that summary prosecution proceedings may be initiated by the Minister for Transport, Tourism and Sport and, in the case of ship registration offences relating to personal watercraft, small fast powered craft and certain small angling boats, the local authority concerned or Inland Fisheries Ireland. Under section 64, summary conviction, except where provided otherwise in the Bill, will give rise to a maximum fine of €5,000. Section 65 allows for the prosecution of both the owner and the master of a ship in the case of certain specified offences linked with the carrying of a certificate of registry and related documentation, concealing the Irish national character of a ship, or assuming a foreign character. Section 66 deals with offences committed by a body corporate.

Section 68 and the associated Schedule 4 provide for a number of consequential amendments to a range of legislation arising from the provisions of the Bill. The majority of these amendments arise from the repeal of the provisions of the Mercantile Marine Act 1955 and the need to replace the references to it in the listed Acts with references to the new Merchant Shipping (Registration of Ships) Act.

Part 9 relates to the safety convention. Section 69 provides for a small amendment to the Merchant Shipping (Safety Convention) Act 1952.

It updates the definition of safety convention which relates to the International Convention for the Safety of Life at Sea, SOLAS. The definition was last updated in the Merchant Shipping Act 2010 and needs to be further updated to facilitate the transposition and implementation of convention amendments, agreed in May 2012, into Irish secondary legislation.

Schedule 1 and the associated section 7 provide for the repeal of several specified enactments, in whole or in part, namely, the whole of the Mercantile Marine Act 1955 and subsequent amendments to that Act in 1998 and 2006. As mentioned earlier, the 1955 Act, as amended, will be replaced by the provisions of this Bill.

Schedule 2, dealing with revocations, and the associated section 8, will revoke several statutory instruments as a consequence of the repeal of the Mercantile Marine Act 1955. The statutory instruments were made under the 1955 Act and will no longer be required following the introduction of this Bill.

Schedule 3, dealing with ports of registry, lists the ports of registry in the State for ship registration purposes and includes all 13 existing ports of registry.

Schedule 4, dealing with consequential amendments of certain enactments, and the associated section 68, provide for amendments to a range of existing Acts arising from the introduction of the Bill. The amendments relate primarily to references in those Acts to the Mercantile Marine Act 1955, to an Irish ship, a registered ship, an owner of a ship, a port of registry, tonnage regulations or issues around load line certification.

My objectives in presenting the Bill for the consideration of the House are to replace and update the ship registration regime in Ireland and to put maritime safety at the heart of ship registration; to remove unsafe or unsuitable ships from the Irish register of ships and to provide for improved enforcement; to assist search-and-rescue operations through the identification of ship owners, and contribute to the saving of lives; to update and modernise the registration process and to provide an efficient and effective service for ship owners, including by means of a central electronic register; to put in place a flexible and responsive legislative framework to maintain a good quality and effective register into the future.

The Bill seeks to apply regulation in the public interest. The extension of mandatory registration to additional ship categories strikes a balance between the needs of the State and public expectations for high standards and safety on Irish flagged ships. I am confident the Bill's provisions will contribute to a quality enhancement of the Irish register of ships and the introduction of a modern, accessible and comprehensive ship registration system. This will support improved safety standards for Irish ships generally with positive effects for ship owners, the general public and the environment.

I commend the Bill to the House.

4:20 pm

Photo of Ned O'SullivanNed O'Sullivan (Fianna Fail)
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I welcome this straightforward legislation. In 2008, Noel Dempsey, when transport Minister, initiated a process which has led to the publication of this Bill. He established a consultation process to develop a system of ship registration which would be coherent and clear. A central register was at the core of that. It is important that vessels be clearly registered, identifiable and trackable. As the Minister stated:


There are gaps in the existing legislative framework in that there is no specific power to remove unsafe and unsuitable ships from the Irish register; there are no provisions allowing for registration for specified periods or purposes or for renewal of registration, and the penalties are outdated.
Safety, obviously, is a significant factor at the core of the importance of registration with 3,200 registered vessels. Security is also a significant factor with the increasing problem along our coasts, especially in more remote areas, of the illegal importation of drugs.

The tightening of central registration would be effective in monitoring and, hopefully, reducing that nefarious activity.
The catalogue of ships subject to registration excludes warships. What is that about and why should they be exempt? I see no reference to car ferries. I stand to be corrected. Are car and pedestrian ferries included in the Schedule? The most striking development initiative is the inclusion of the small pleasure craft, particularly the infamous jet skis, which I warmly welcome. As the Leas-Chathaoirleach will know, we in Kerry have had a lot of trouble on our beaches and in our resorts with people behaving in an irresponsible fashion and being a danger to themselves and others, especially young people and children. It is very good that this is being attended to now. The Minister said:

The inclusion of personal watercraft and small fast-powered craft reflects the growth in their use ... Reports from the Marine Casualty Investigation Board have identified incidents of marine casualties involving recreational craft, with recorded incidents involving jet skis causing deaths in 2003, 2006 and 2007, and involving fast-powered craft, in 2010, 2011 and 2012.
The MCIB has recommended this registration and the Minister is complying with it and, again, we are at one with him on that.
The process is to be phased in over a period. Has the Minister an end date in mind? When will the process be complete and the central registry up and running? We are around long enough to know that a "nominal fee" can be anything but nominal. Sometimes fees grow exponentially. What revenue does the Minister hope to bring in from this? Although it is clearly not his priority in this Bill, one wonders what it will come to. Rationalisation always brings job losses. Is there a jobs consideration in this Bill and will the Minister comment on it?
Maritime law is completely different from regular law. I spent 16 years as a director of a port company, namely, Shannon Foynes Port Company, before that Shannon board and before that Limerick Harbour Board in its old manifestation. I learned much about the shipping business. It has a different language. In an interview about the railway situation the Minister said he was a romantic and found a great sense of romance in trains. Much of the language of this Bill is redolent of the Patrick O'Brien series of novels about Jack Aubrey, Master and Commander, set in Nelson's navy. A man who finds the 11 o'clock train to Charleville romantic must have got a great kick out of this.

4:25 pm

Photo of Pat O'NeillPat O'Neill (Fine Gael)
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I welcome the Minister and congratulate him on bringing this legislation before the House. In all the legislation the Minister has brought before the House, such as the Taxi Regulation Bill or the Road Traffic Bills, he is reforming. It is important that this legislation be updated. Some of it goes back to 1894 to 1955. This Bill may be like the Taxi Regulation Bill recently passed by the Seanad and Dáil. It brings in new regulations for a very important industry. As an island nation it is very important that we have proper legislation for the maritime industry.

There will be no significant increase in charges, and Senator Ned O'Sullivan hinted at this.

Large or commercial passenger ships or recreational vehicles will pay between €200 and €250. Is this an annual charge? How does it compare to charges in our nearest neighbour, the United Kingdom, and the rest of the European Union?

As we all know, ships fly a flag, but this may be a flag of convenience. The state of the flag which a ship flies exercises regular control over it and is required to inspect it regularly, certify its equipment and crew and issue safety and pollution prevention documents. If a ship flies a temporary flag in Ireland, is it obliged to register in order that it complies with our laws under the Bill? Some state we have 11, others 12, while the Minister states we have 13 ports which can register. Will extra staff be employed for the task of surveying? Will a centralised office be established to provide for the registration of ships?

Changes will be made to who can register as a ship owner. Previously, as the Minister stated, one had to be an Irish person or a corporate body but now any person in the European Union, member state or corporate body can register a ship in Ireland. This may help employment creation in the country. If our regulations are seen to be the most stringent in Europe and the world, it may help to attract companies to register their ships in the State, which would be welcome.

With regard to section 21, we have mentioned the taxi regulation Bill. I consider this to be an NCT for ships, or that is what it should be. As the Minister pointed out, there are gaps in the existing legislative framework. There are no powers to remove an unsafe or unsuitable ship from the Irish register. There are no provisions allowing registration for a specific period or the renewal of registration, while the penalties are outdated. The legislation will update what have been seen as antiquated laws which we have had for a while.

I have an issue with sections 11 and 12 and the temporary registration of ships. For how long must a ship work before it must be registered temporarily? Perhaps I did not understand the Minister. If a ship comes into port and then leaves, it does not have to register. For how long must it be working in Irish waters before it must be registered temporarily under the legislation?

I support Senator Ned O'Sullivan with regard to jet skis being brought under the legislation. The Minister mentioned this issue. We have all seen bathers and swimmers at beaches terrorised by jet skis. Some 123 people lost their lives in shipping or boating accidents between 2002 and 2012. It is important, therefore, that this legislation covers leisure craft and certain maritime leisure vehicles.

It is welcome that the Minister hopes to introduce the safety at sea initiative later this year. It should include placing swimming lessons on the school curriculum to ensure everyone in the country will be able to swim. I have raised this issue in the House and with the Minister for Education and Skills. We are an island nation and I hold up my hand and state I am not able to swim. I am ashamed to say it. If it was included as part of the curriculum, everybody would be aware of how dangerous water can be and also how great a leisure activity swimming can be.

The penalties are set at 1955 levels and the maximum fine is €635. It is important they be brought up to date. This is not about penalties but safety at sea and ensuring all ships and boats which operate in our waters operate to the highest standards.

I welcome the fact that more people will be allowed to enforce the legislation such as the Minister's departmental officials, members of the Garda, Revenue officers, sea-fisheries protection officers, officers of Inland Fisheries Ireland, certain Defence Forces personnel and officers of the Irish Coast Guard. These people have a certain expertise in this area and it is important that this is outlined in the legislation.

Before I welcome the Bill to the House, I have a question for the Minister. The legislation deals with merchant shipping and regulations for boats or ships that operate in our waters, and even leisure craft. Is there legislation that outlines who is entitled to operate a craft in Irish waters? If I want to drive a car I must have a driving licence. Nobody is going to leave a big ferry in the hands of a total amateur and I know that operators have worked their way up through the ranks. Can I hire a boat if I go to a port in the morning? What legislation exists to govern who can take out a craft over a certain size?

4:35 pm

Photo of Sean BarrettSean Barrett (Independent)
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I welcome the Minister. I thought Senator O'Sullivan was going to launch into a version of "Pirates of Penzance" when he gave his romantic view of the sea. A line from the song could go something like this "stick to your desk and never go to sea, and you can be the leader of the Queen's Navee".

I thank the Minister for his presentation. Would registering small craft have an impact on safety? Road vehicles have been registered for years yet we must still mount a substantial road safety campaign, including one under the Minister's watch, in order to get deaths that numbered 650 at their peak down to 162, and latterly 190. Visitors may find registration a nuisance. One of points used by Bord Fáilte to sell Ireland as a tourism destination is that one does not require registration when one docks in some of the ports on the south coast. Is the registration of small craft worth it? Will the provision just lead to a large amount of bureaucracy?

Section 23 provides for the temporary registration of recreational craft under 24 m and other sections provide for the registration of craft greater than 24 m. If there is a problem with jet skis then it is a problem for the Irish Coast Guard and the Garda and simply registering them will not make a difference.

The Minister has said that the ports of registration would be standardised but Tralee is listed in Schedule 3. As Senator O'Sullivan has confirmed, it would be pretty hard to get a boat into Tralee to register it at this stage because the canal between Blennerville and Tralee silted up long ago. The list needs to be updated. It would be fairly difficult to get any craft into Westport for registration because the draft is pretty shallow. As the Minister has said, the list is outdated but I am sure that he will update it soon.

Registration and bureaucracy will do a certain amount to improve safety. However, we have found that we need a functioning insurance industry in this country. The industry should police the project and impose heavy premiums on people who make lots of insurance claims. We seem to have an inefficient insurance industry which is frequently, with levies on the rest of the industry, bailed out by the Government. In discussions between the Minister for Jobs, Enterprise and Innovation and the industry, for example, we ought to require a much higher level of performance than heretofore. The Minister for Finance and the Minister of State, Deputy Brian Hayes, have referred to implementing improvements to reduce flooding but it takes an awful lot of time for such measures to be reflected in premiums. A large number of people act in a safe manner but if people do not then the insurance industry should help us to rid us of the latter category.

Another fear is that if we are too strict on people they will opt for flags of convenience, as Senator O'Sullivan has said. Does the Minister have plans, at the next stage, to deal with their operations when they come to Irish ports? We have 3,200 registered craft now. Does he have in mind the anticipated size of the register? Will he require extra resources or extra workforce for same?

Before we embark on this we should know the administrative burden we are taking on. When I asked people in the industry who, as Senator Ned O'Sullivan said, are broadly in support of what the Minister is doing, they asked that we ratify the Cape Town treaty which, I gather, is a convention on international interests in mobile equipment and that is being extended to include ships. Perhaps at the next Stage the Minister would report as to whether there are any developments in that area.

I welcome the Bill and the presentation by the Minister and wish him plain sailing in bringing forward the legislation.

4:40 pm

Photo of Ivana BacikIvana Bacik (Independent)
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I welcome the Minister, Deputy Varadkar, to the House. I welcome the legislation. As I am standing in for our transport spokesperson I am speaking from a position where I knew very little about this area until I started to read up on the Bill. I was surprised by just how necessary the Bill is and the number of gaps in the current system in terms of maritime safety law. As Senator Ned O'Sullivan has said, the Bill deserves congratulation and commendation from both sides of the House. Clearly, it is important that these measures are introduced to improve the governance of our maritime registration and, more generally, to improve maritime safety. I should say that a specific area of law, namely, admiralty law, is devoted to this issue. I am informed it is a lucrative and very complex area of law. I had friends in England who practised exclusively in the law of the sea, in admiralty law. For any lay person it is easy to understand the purpose of the Bill, which is to replace the old system of registration of ships broadly defined with a new centralised register of ships and, in doing so remedy the gaps that have been exposed in the maritime legislation which dates back to the 1950s and which is clearly flawed.

At present we do not have power to remove unsafe or unsuitable ships from the Irish register. That issue will now be addressed in section 21. There is no provision currently for renewal of registration. The penalties are outdated with a maximum fine under current law of €635 which will be increased to the much more appropriate level of €5,000, a class A fine. I understand that until now, only Irish citizens could register whereas the new Bill will allow EU citizens to do so. What came as a surprise to me was that hitherto registration has not been centralised and that we have a system of paper records, generated over 11 areas, from which it is very difficult to generate data. Senator Barrett mentioned the figure provided by the Minister of 3,200 ships currently registered. Clearly, there could be a multiple of that figure which will now be registered under the new system but it will be much easier to access the data on these ships.

Through the system of improved registration and improved governance we will be able to address issues of maritime safety and the terrible record of accidents at sea. I looked at some of the figures from 2002 and 2012 which showed that there were 123 deaths in maritime transport on the sea but also on our inland waterways which can be very dangerous. I looked again at those figures and learned that 90% of those deaths occurred in the two highest risk categories, 46% in fishing vessels and 44% in recreational craft. The sad truth is that many of those deaths are preventable through better measures in maritime safety. I spent a lovely weekend at the lakes in Cavan from where I have just returned. There, one sees how important the tourism of inland waterways and angling is to the Irish economy. Therefore, it is very important that we ensure proper safety and proper systems of registration for visitors as well as Irish based craft. I note what Senator Pat O'Neill said earlier about minimum requirements for people piloting boats. I know that people who hire boats on the Erne or the Shannon or barges on the canals are given basic training. The training or the basic requirements should not be overly onerous for someone to drive a boat. Can that issue be addressed in legislation like this or is that beyond the remit of a Bill such as this?

As to what the Bill covers, it is clear that section 2 will apply to all ships. Like Senator Pat O'Neill, I wonder if car ferries are included. I am aware there is a provision in section 2 about international journeys which will clearly cover the journeys taken by most car ferries. Rowing boats are not covered but speed boats and jet skis are covered.

Again, like other Members, I greatly welcome the extension of registration provisions to jet skis because as the Minister observed, the Marine Casualty Investigation Board has highlighted incidents involving jet skis, which indeed caused fatalities. All Members will have seen jet skis engaging in dangerous activity off the coast and on inland lakes and consequently, this measure is important.

Temporary visitors now will be covered and in the scenario in which someone seeks to register but is refused, there now will be provision for an appeal to the District Court. In addition, as the Minister stated, there will be provisions for renewal. Other Members have raised the issue of the registration fee, which the legislation provides will be set by the Minister. However, I understand it is envisaged that ships which already are registered can transfer to the new register for free and there will be a nominal registration fee of less than €50 for visitor registrations. I believe current registration fees for larger ships are between €200 and €250 and I understand this is not to be increased but again, the Minister might address this point in his closing remarks.

As I noted, this Bill is about improving the system of registration, about ensuring a move to online registration and to having easily-accessible data on maritime vessels. However, it also is important to note the improved governance that will result from this legislation. While the Minister stated the Revenue Commissioners will remain in charge of registration on a transitional basis, he might outline when it is envisaged that the Department of Transport, Tourism and Sport will take over. I note it is envisaged that a new entity would be created within the Department, namely, the Irish maritime administration. Its purpose to take both the Irish Coast Guard and Marine Survey Office bodies together and I understand this entity will administer the central registration system. In that regard, others also have mentioned the ports of registry and Schedule 3, which refers to the 13 existing ports of registry. However, as the Minister highlighted in his own contribution, it is envisaged in sections 30 and 31 that these locations may not all be retained as ports of registry. Moreover, there is express provision for removing those where it no longer is warranted that there would be a ship registration office. Is it envisaged that there will be a move to a central registry run by the Department of Transport, Tourism and Sport? What is the purpose of having specific ports of registry? Will they be virtual entities, more or less, or is it envisaged that there will actually be a physical office? Again, I am unclear as to what will roll out in that regard. I note that for the time being, the 13 ports will be retained in Schedule 3.

Another matter to which reference has been made and which is also extremely welcome is the consultation or review announced by the Minister on safety at sea, with a fairly specific timeframe of between May and October or November. The Minister seeks submissions from anyone interested on how to improve safety at sea, presumably beyond the provisions of this Bill. Would there be room for amendments to this legislation were, for example, submissions to be put forward in respect of matters that are not, but which might be, covered within this Bill and which might improve marine safety? Could this be done through amendments, because it is envisaged that this Bill will have become an Act by the time the public consultation documents will be published?

Senator O'Neill mentioned swimming classes and I agree with him. As a swimmer myself, it is hugely important that children learn to swim on an island nation. I believe it now has been rolled out across primary schools that in second-class, children have swimming lessons provided free by the schools. I believe this is on a national basis and perhaps that should be expanded further. It is just a one-off and does not apply in other years in primary schools. Clearly, this may not be enough for those children who have had no swimming lessons before that. My final point is to pay tribute to the Irish Coast Guard. All Members recognise the extraordinary work it does and figures show that last year was one of the busiest years ever for the Irish Coast Guard. It was called out to more than 2,600 incidents and clearly, a huge amount of work and a great deal of prevention goes on that is unseen by many of us but which contributes to the prevention of the sort of awful accidents and injuries that have been witnessed in the past. In conclusion, all Members welcome this Bill, which clearly will do a great deal to improve the governance of the maritime system, as well as to improve safety at sea and on inland waterways.

4:50 pm

Photo of Feargal QuinnFeargal Quinn (Independent)
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The Minister is welcome to the House and this Bill is also welcome. I went to live in Howth 40 years ago and I live by the sea. Over those years, I have grown very fond of seeing the amount of activity that takes place on it. We recently had a visitor from Hull who could not get over it. He told me that when he was growing up, Hull was as busy as is Dublin Bay now. However, it is very exciting to look at Dublin Bay and to see the amount of activity, the number of cargo ships and even more so, the number of cruise ships coming in. It is a real way of life to watch the pilot boat going out and bringing them in.

I wish to add to something that Senator Bacik mentioned. We see the Irish Coast Guard being used and saving lives on such a regular basis, both on the cliff face and out at sea.

I wish to raise some brief points related in some way to this Bill, which aims to improve the shipping registration system. I have previously mentioned the lack of a small ships register in this country. Therefore, it is impossible to trace the ownership of most private boats unless they have a current free Shannon licence. We debated the move to charge vessel owners even without this basic and fundamental registration in place. Specifically, I note that this Bill will not include recreational craft less than 24 m in load line length, other than personal watercraft and small fast powered craft, which are required to register, and that warships will not be required to register. Can the Minister elaborate on whether we could move towards having a small ships register and not only one for merchant shipping? If the Government is going to charge people to use our waterways, this basic provision should be put in place.

Are there any plans by the Government to adopt the UK model in this country, whereby every boat on the waterways must have a boat safety certificate, which includes checks on gas and fuel lines and such matters? We have talked a good deal in the Seanad about safety and preventable deaths. We should be looking towards improving safety on all our areas of shipping and waterways and not only in the area of merchant shipping.

While this Bill is welcome, we should be looking towards major issues that need to be tackled, such as mandatory boat insurance, mandatory safety devices, about which Senator Bacik spoke, and the issuing of safety certificates in tandem with such legislation. Arguably, such moves are more important. We should be examining these matters much more closely and we should at least have a debate on them in the Seanad. It would be a way to push forward these crucial issues, which are very important. Every time there is a death at sea or in the water we realise how important they are.

On a specific issue related to this Bill, can the Minister elaborate on whether an audit will be done of the registry and, if so, by whom it will be done? I did not notice a provision for this in the Bill but perhaps it is included and I missed it. Perhaps the Bill should provide for an outside body in this respect to ensure we have the most the most accurate and up-to-date registry. I would be interested to hear the Minister's view on this.

This Bill is worthy of support. I believe the Minister will get support for it, and he is getting support for it today. I congratulate him on taking a step in this direction, although there are other elements that could be added to it.

5:00 pm

Photo of Hildegarde NaughtonHildegarde Naughton (Fine Gael)
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I also welcome the Minister to the House. I very much welcome this Bill and its concentration on producing a modern registration system for Irish-registered vessels, including small inshore craft. My local authority in Galway, like others, had to introduce by-laws some years ago in an attempt to regulate the actions of jet-skis in Galway Bay. Registration of these vessels will go some way to ensuring their responsible use.

I have a few small queries regarding the Bill, principally the potential cost of registering craft used in the tourism industry. The Minister, to his credit, has had well-deserved success in resuscitating our tourism industry in the past three years. Prior to setting any tariff in regulation, will the Minister consult the various tourist organisations? While the registration of small craft such as commercial ghillie boats is to be welcomed to ensure adequate safety standards, I hope the Minister will be cognisant of the fact that many people with such craft only get seasonal work and do not make large amounts of money. At the same time, they contribute greatly to what is a very vibrant industry. Therefore, I hope the registration charge will be reasonable.

For clarity, can the Minister assure the angling community that registering under this legislation will not be a precursor for some form of boat tax, as some of the online commentary from the angling community suggests?

In regard to non-commercial boats less than 24 m in length, I wish to highlight some concerns of the Irish Sailing Association which I find reasonable. The vast majority of pleasure craft are less than 24 m in length and therefore do not require registration as long as they are non-commercial. However, owners of vessels wishing to travel abroad on their boats to nearly any country other than the UK would find it practical if they could register their boats here.

The downside to registering here is that small pleasure craft are then subject to the same terms and conditions as a super tanker. It seems reasonable that the conditions in registering a small pleasure craft should be less onerous than for large vessels. Perhaps the Minister might indicate whether he envisages an ability to voluntarily register a small vessel and have less burdensome conditions attached to the registration of smaller boats.

Additionally, there is a requirement under the Bill for proof of ownership prior to registration and while this is all well and good in the case of large vessels which may be owned by companies, the vast majority of small boats operating in Irish waters are fourth or fifth-hand and no bill of sale would be available, given that the sale of boats generally happens informally over many years. Will the Minister consider looking at this issue, perhaps requiring such owners to provide a sworn affidavit which would be sufficient for registration?

Section 46(3) of the Harbours Act 1996 conferred powers on the harbour master in providing for public safety. Given that a harbour master is required to have extensive experience in these matters, does the Minister not consider the Bill is inadvertently watering down public safety requirements since it confers this power on the harbour company as opposed to the harbour master? It seems to be a retrograde step and perhaps the Minister might look again at the provision.

5:10 pm

Photo of David CullinaneDavid Cullinane (Sinn Fein)
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I welcome the Minister and the Bill which is a welcome step in how we manage merchant shipping on the island. I am sure the Minister will agree that it is long overdue, but it is welcome that it has been published. The idea of a register has been cautiously welcomed by those involved in the shipping industry, in particular the Irish Marine Federation. We certainly support it, with the intent of the Bill.

Registering a craft in Ireland allows it to confirm its nationality and fly the Irish flag. The Bill modernises the registration scheme for fishing boats less than 15 m in length, personal water craft, small fast powered craft and small angling boats. This is increasingly important as these kinds of craft, in particular jet skis, have become a feature in Ireland in recent years. With the good weather we are having which I hope will continue into the summer months, it is more prevalent. It is no longer uncommon to see these kinds of craft in use in our bays. These are powerful craft which must be operated with the utmost regard for public safety. We have all heard of tragedies involving jet skis and should, as much as possible, ensure they are only used by responsible people who know what they are doing. Many countries are ahead of us in this regard because they recognise there must be a registration process and proper checks and balances to ensure those who have such craft use them in a responsible way. A Marine Casualty Investigation Board inquiry into the death of Alan Joyce at Lough Beltra, County Mayo concluded that such craft should be licensed and that those using jet skis should have to complete a mandatory training course, which I would support. The inquiry found that those using the jet skis did not receive training, were known to be poor swimmers and not wearing life jackets.

This House has had several debates on the need for proper safety measures at sea for fishermen. The Minister might recall that on two occasions I tabled Adjournment motions on the need for personal beacons for fishermen which could be integrated into their life jackets or worn as a wrist band. There are different ways by which it could be done. We should do anything we can to improve safety at sea, including for fishermen and those who use pleasure craft. We need to ensure people wear life jackets. There should be standard mandatory requirements for those who use these craft for pleasure purposes to minimise whatever threat or health or safety concerns arise. In the same way as the regulation of road safety brought about a complete shift in attitudes to safety among the public, we should use regulations to improve safety standards in maritime life. One cannot operate a motorbike without a helmet, a licence and insurance; it goes without saying, therefore, that the same should apply to these craft.

It goes without saying that the same should not apply to these craft. It should not be any different for jet skis. Certain criteria must be fulfilled before anyone can legally operate them.

One issue we have with the Bill is the potential for outsourcing of the registration process, which is included. This process should be carried out by a State agency and not a profit-making private body. We had a discussion some months ago about privatising bus routes. There seems to be an obsession in this Government, particularly in the Fine Gael Party, with removing State responsibility from as many things as possible. It is in the interests of the public at large that a proper ship registration process is in place. It should not be a moneymaking exercise.

There is not a great deal more that can be said about this straightforward and important Bill, which I will support. At some point in this term of office, I hope the Minister will come back with improved regulation for fishing vessels, taking on board some of the points I made earlier about personal beacons. The Minister did some work on the use of beacons on boats and improvement in that area, which is hugely important. Senator Maurice Cummins comes from the same part of the country as me and we have seen far too many tragedies off the south-east coast. Some of them could have been avoided if we had better safety equipment standards on boats and on those who use boats. I will support anything that will improve health and safety at sea.

5:15 pm

Photo of Maurice CumminsMaurice Cummins (Fine Gael)
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I welcome the Minister to the House. The Bill forms part of a series of initiatives undertaken by the Minister in the maritime transport area. The Minister's priority is to ensure safety at sea, which is vital for all those who venture onto the water. The new registration Bill is part of the work of the Minister and the Department in this area. The Bill before us updates legislation we have had for quite some time. The significant component of the Bill deals with the system of registration of ships in Ireland, and updates, restates and clarifies the law on the registration of ships. Currently, there are several registers and registrars of ships and this Bill replaces the system with one centralised register of ships. The Bill has a number of measures to address the significant gaps that exist in current legislation. There was no specific power to remove unsafe and unsuitable ships from the Irish register, which was regrettable, and no provision to allow for the registration or the renewal of registration for specific periods and purposes. The penal levels were outdated.

Prior to this Bill, the only one who could owner a ship in the Irish ship register was an Irish national or a body corporate incorporated under the laws of Ireland. Now, any national of the EU member states or a body corporate of EU member states can own or own a share in a ship registered in Ireland.

Section 9 of the register replaces the current register books under section 24 of the Mercantile Marine Act 1955 with a new register of Irish ships. Upon enacting of the Bill, the register books will close and any entries will be transferred to the register. Any existing registered ships will be deemed to be registered for a further five years. All ships operating domestically in Ireland, unless exempted, are required to register. That is to be welcomed. A ship is identified as including every description of a vessel using navigation not propelled exclusively by oars and includes personal water craft and small fast-powered watercraft, including jet skis. These have been mentioned by a number of Senators and the legislation will be welcomed by many people involved in ports. As a former chairman of Waterford Harbour Board and a board member, I remember many senior members of port staff using colourful language to describe small craft and jet skis that were interfering with the use of the port by commercial vessels. They will welcome the legislation.

An application for registration must be made to the Minister, not to the register. Under section 12 of the Bill there may be standards that a ship must meet in order to qualify for registration, including information on its inspection history; its type, age and size; the recognised organisation involved in certification; company performance and operators; the current flag state and the trading system.

Alongside full registration, the Bill provides for temporary and visitor status which is primarily related to ships coming from outside Ireland. Where registration is refused, there is an appeals process to the District Court. The Minister's decision is not final in this regard. Registration is for five years initially and if there is compliance by users, subsequent renewal periods will run to ten years.

A regulatory impact analysis was carried out by the Department in 2012 and it was found that the existing ship registration regime was functioning and serving its purpose as a mechanism for Ireland to meet its international obligations. However, it was also found that there were fundamental gaps in the existing legislation. The Bill is, therefore, intended to modernise the existing system, filling such gaps and making the system more efficient and effective. Currently, ship registration functions are not carried out by staff in the Department of Transport, Tourism and Sport and, as a result, there will be new and ongoing IT, administration and staffing costs for the Department. This arises from the new centralised, electronic Irish Register of Ships. As the Minister mentioned, a cost will arise for ship owners for the registration of ships and the fee will be set by the Minister. However, ships already registered will be transferred to the new central system free of charge for five years.

I join Members in paying tribute to the Irish Coast Guard and those involved in life-saving such as the RNLI who have worked to try to prevent tragedies at sea. We have had far too many in recent years. I commend the Minister's efforts in providing for locator beacons and other safety measures at sea. He has taken a proactive role and I commend him for his work in the maritime sector and in the general area of transport.

5:20 pm

Photo of Jim WalshJim Walsh (Fianna Fail)
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I welcome the provisions contained in the Bill. As an island nation, our shipping and fishing industries have been negligible compared to those in other maritime countries of similar size. It strikes me that there is scope for the development of both. Our fishing rights went when we joined the European Union; we traded them for benefits in the agricultural field. Subsequently, we came to realise the potential for earnings in the fishing business.

There is nothing new about registering ships. As far back as ancient Rome, ships were registered; therefore, it is not a new phenomenon. The issue of flags of convenience has been raised. As someone who worked in the shipping business for a long period, it was interesting to come across the different criteria laid down by the registration authorities in different countries. Some of the consequences of this affected the sailors working on board ships.

With regard to tonnage rates and the criteria to be applied, I will ask the Minister when he has finished texting-----

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I am listening.

Photo of Jim WalshJim Walsh (Fianna Fail)
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-----if he will outline the criteria and the costs involved and compare them with rates in other countries.

We should encourage growth in the merchant fleet and I hope we can attract as many as possible to register under the Irish flag.

As I stated earlier, our merchant fleet is very small compared with other countries, such as those of Holland, Germany and Denmark. They have considerably more ships, and it has often struck me that we need to provide incentives in this regard. Previous Governments did so in the late 1980s with the extension of the business expansion scheme to shipping. Many people probably do not realise that Irish Ferries grew from that process. It was a particularly good investment, and I have calculated that if a person put in the £25,000 per year allowed, or £50,000 over two years, half of it would have been returned through the tax process and the investment would have grown to approximately £1 million if the shares had been held. It was a particularly attractive investment for anybody with the foresight to do it. I did not, although I invested in another coastal shipping operation, which did fine. It was attached to the major private merchant fleet in the country, which is Arklow Shipping. I am sure the Minister is familiar with it and the tremendous job that Mr. James Tyrrell did as managing director of the company when he took over as a young man many decades ago. It had a small fleet of very small ships carrying 300, 400 or 500 tonnes. The ships were frequent visitors to the port at New Ross with many products, and the boats would be tied up on a Friday evening and return to sea on Monday. When Mr. Tyrrell took charge that changed, as his philosophy was that ships were made for being at sea rather than staying in ports. Dublin Shipping had a fleet of tankers operating between various ports in Ireland, particularly Whitegate, distributing oil around the country. There is scope to develop the trade.

I have some questions on the Bill. I note that first registrations will expire after five years, and on renewal there will be a ten-year registration. What is the logic behind the initial five-year registration? The Department and the Minister of the day will be the recipient of applications, but why is this not being independently run? Foreign earnings form a major part of this issue, as this equates to invisible exports. The bigger the fleet, the more employment it will bring. Most of the earnings will be foreign, as the trade will occur all over Europe. The current fleet, for example, may return to Ireland only periodically as it transports goods between different European countries. It was a pity to allow Irish Shipping to go, as it had a niche, particularly with regard to larger vessels.

I encourage the Minister to set up a group to examine what can be done. It could consider what happened with the business expansion scheme and its achievements to see what we can do today to incentivise investment, particularly heavy capital investment, and get people into the business to expand the fleet. There should be consideration of how to encourage the growth of the national fleet, with the beneficial foreign earnings and employment that would come about. It should be part of our planned recovery, and I support the Minister in such an endeavour.

5:25 pm

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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There are a few points on which I will need to get further clarification, so I will address them on Committee Stage. One question was why warships are exempt. This is because they are not covered under international conventions related to shipping; instead, they are covered by other legislation. Ferries are included among all passenger and commercial ships but it is important to bear in mind that many ferries operating in Irish waters are on foreign flags. I believe Irish Ferries operates on a Cypriot flag. There are no intended job losses from the change to the register, which will be done over a period. Our objective is to expand the register as much as possible.

The question was asked as to whether the registration of cars had improved road safety or reduced the number of accidents. I am sure it has not, but registration none the less makes enforcement possible. I do not propose to register bicycles but, as such, it is very difficult to impose and enforce fines on bicycle users. I cannot really predict the size of the register; we will have to wait to see how many additional vessels will be put on it. I imagine there will be a big increase, particularly with the addition of recreational and smaller craft. Senators Quinn and Naughton asked about a small ships register. As far as I understand it, this legislation does not provide for the creation of a small ships register, although it provides for one register with different parts. I see the point being made and will consider it. To the best of my knowledge there is no requirement for mandatory insurance, but I will revert on the issue.

Reference was made to a boat tax, and that is the first I heard of such a tax. There is a registration fee but there are no plans for a boat tax. With regard to proof of ownership, legislation provides for a declaration of ownership if the appropriate legal documentation cannot be found. I must revert to the Deputy on the difference between a harbour company and the harbour master, as I am not sure of the answer. Senator Cullinane asked about personal locator beacons, which were grant-aided by Bord Iascaigh Mhara recently. I cannot remember if they are compulsory now but there are plans to this effect. As with many devices, this comes down to personal responsibility, and when I read reports from the Marine Casualty Investigation Board I am shocked to see the number of times safety equipment on fishing vessels, in particular, has been tampered with, does not work or has not been updated, or the number of people who do not wear life jackets at all or wear unsuitable jackets. Most incidents should not happen in the first place, but when they do, we often find the life jacket might have been out of date and did not work, or a personal locator beacon was not worn. The majority of incidents would not have a negative outcome if people looked after themselves at sea.

The five-year period is an arbitrary number; it could have been three or six years. The five-year period was chosen as a reasonable period in which to get the new system running well. We wanted to reassure people that they would not be hit with a set of charges very quickly after the introduction of a new system. The Minister deals with this, rather than an independent body. I did not want to set up another independent organisation as we have enough Government or State agencies. The matter could be reconsidered in the longer term. In the United Kingdom, the coast guard operates under a separate agency, and it may be something to consider in future, although I do not intend to do it now.

As has been mentioned, there will be one national Irish register of ships, and it is proposed to include all vessels, with parts for the different types of vessel. All registered ships must comply with relevant requirements, including safety certificate and licensing requirements. The fees will be set at different levels, with lower fees for smaller vessels. With regard to ports of registration, it seems that ships ordinarily display the name of the port from which they sail, so we do not want to change such history. Having said that, I do not see why people cannot put this on a vessel if desired, as it does not necessarily require legislative underpinning. A central office in the Department will operate the new register.

We will recognise the registration of foreign flags if it confers nationality and the ship flies a foreign flag.

Senator Barrett asked about the Cape Town treaty. I am very familiar with the Cape Town treaty on aviation leasing and we are drafting legislation to introduce the alternative A option into the system. It deals with leasing and finance in aviation. I did not know it could apply to maritime also. Perhaps it cannot but I will check.

Senator O'Neill asked who is licensed to pilot a ship. The existing legislation deals with safety certificate requirements for vessels. Various requirements depend on various types of vessels such as whether it is a passenger boat or fishing vessel. If a boat is hired for reward or passengers are charged, one must be fully licensed but if it is one's own vessel which one drives oneself a different set of rules apply.

Two Senators asked how our fees compare to those internationally. I am not sure I have a note on this among my 20 notes here but I will certainly come back to them on it on Committee Stage or in future. The maximum charges will range between €250 and €251. When we speak about a nominal fee we mean a fee structure of less than €100 for such vessels.

I am loth to give a timeframe for implementing this. It will take quite some time. The legislation must go through the Houses after which a separate IT project will move it forward electronically. There must also be a tendering process. A project team has already been established to do this but I am loth to say how long it will take as even putting the regulations in place will take time. I would say that most likely it will take a couple of years to get it all working.

Temporary registration is security for the purpose of navigating a ship from abroad to a port in the State through Irish waters. If a ship operates domestically it is of a category required to register. The ship must be registered.

I believe I have covered most of the questions at this stage. Rather than reading out all of these notes as they are I will go through them and offer clarifications and answer any other questions on the next Stage.

Question put and agreed to.

5:35 pm

Photo of Michael MullinsMichael Mullins (Fine Gael)
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When is it proposed to take Committee Stage?

Photo of Maurice CumminsMaurice Cummins (Fine Gael)
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On Wednesday, 7 May 2014.

Committee Stage ordered for Wednesday, 7 May 2014.

Photo of Michael MullinsMichael Mullins (Fine Gael)
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When is it proposed to sit again?

Photo of Maurice CumminsMaurice Cummins (Fine Gael)
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Ar 10.30 maidin amárach.