John Perry (Sligo-Leitrim, Fine Gael)
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Question 95: To ask the Minister for Communications, Marine and Natural Resources the action he will take regarding tax breaks for Irish Ferries; the reason action was not taken sooner when it became evident that Irish jobs were on the line; the reason he has not acted before now to re-introduce this scheme; and if he will make a statement on the matter. [27758/05]

Pat Gallagher (Donegal South West, Fianna Fail)
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The employer's of seafarers PRSI refund scheme ended on 31 December 2003. The scheme commenced in 1996 on foot of proposals put forward by the Department of the Marine; it was a Commission approved support measure, that is a State aid to facilitate the employment of seafarers in the Irish PRSI system. The scheme refunded employers of such seafarers their PRSI contribution for each of their seagoing employees. The reintroduction of the scheme required the agreement of the Ministers for Social and Family Affairs and Finance and the co-operation of the Department's mercantile marine office.

An interdepartmental expert working group, comprising representatives of the three concerned Departments was established and chaired by my Department, tasked to produce a report recommending whether the scheme should be reintroduced. In December 2004, agreement was reached that the scheme should be reintroduced with effect from 1 January 2004 for a period of seven years. Commission approval for the reintroduction of the scheme, under the 2004 Community guidelines on State aid to maritime transport, is expected to be received in the next few weeks. There will, accordingly, be no break in the scheme's application.

In 2002 the Government introduced a sector specific corporation tax, the tonnage tax, for our ship operators. We have a unique €6,350 income tax allowance for seafarers in place. In the context of the upcoming budget, I had sought the Minister for Finance's agreement to the introduction of additional EU approved State aid for our maritime sector, focused on encouraging the employment of Irish seafarers, before Irish Ferries announcement on 19 September 2005 of its latest redundancy proposals.

Pat Rabbitte (Dublin South West, Labour)
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Question 96: To ask the Minister for Communications, Marine and Natural Resources if, in view of the recent condemnation of the Irish Ferries proposals, the European Commission will resubmit without delay its proposal for an EC Directive on manning conditions for regular passenger and ferry services operating between member states — Com(1998)251 final of 29 April 1998 and amended proposal Com(2000)437 final of 13 July 2000, withdrawn by the Commission on 10 October 2004; and if support will be given to incorporating the provisions of Article 2.2 of Com(2000)437 final into EC law in view of these comments. [27862/05]

Pat Gallagher (Donegal South West, Fianna Fail)
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There is no EU directive on the manning of regular passenger and ferry services operating in and between member states, in force or being considered at present by member states. If the Commission were to initiate such a proposal, I would give it very careful consideration.