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RMT has slammed the “blatantly
alarmist” noises coming out of
the shipping industry which
threaten to destabilise the
already damaged sector and
which pose a renewed threat to
seafarers jobs and training.
European Union regulations
restricting the sulphur content
of marine fuels to 0.1% are due
to come into effect in the North
Sea and Channel from January.
These are required under laws
agreed in 2005 by the
International Maritime
Organisation.
The EU gave notice of the
planned sulphur cap and the
deadline for introduction to
industry and European
governments in 2008.
The Amec report
commissioned by the Chamber
of Shipping into the costs of
new sulphur regulations is out
of date.
That report was published in
March 2013 and priced
conversion for companies at
£300 million. In the last six
months oil prices have collapsed
dramatically, one significant
factor that escaped three-minute
warning from the industry body.
As a result, seafarers and
passengers face an uncertain
future after the sulphur
regulations are introduced and
Government should commit to
making the release of any public
subsidy to industry to meet
conversion costs conditional on
the protection of seafarers jobs
and passenger fare levels.
RMT general secretary Mick
Cash said that threats of job and
route cuts and fare hikes in the
shipping industry made no
economic sense when global
seatrade is set to double over
the next twenty years.
“The country cannot afford
for UK seafarers and the
maritime skills base to be shut
out of the opportunities this
presents and the government
needs to re-start the stalled
Shipping Strategy to find
effective ways of protecting and
increasing UK seafarer numbers,
rather than shipping companies’
profits.
“The number of UK ratings
has fallen by 3,290 since 2011
alone and the shipping
industry’s approach to the
sulphur regulations must be
seen by the government for
what it is, a cynical attempt to
wrest more subsidy from the
taxpayer to meet conversion
costs ahead of tomorrow’s
autumn statement,” he said.
RMT national secretary Steve
Todd said that seafarers,
passengers and the national
economy must not be forced to
pay for the shipping industry’s
failure to prepare for regulations
introduced six years ago.
“New limits on the sulphur
dioxide content of shipping fuel,
required by international law,
were announced by the EU in
2008 when the Chamber of
Shipping welcomed them as “a
major move forward’ as well as
a realistic deadline.
“Some operators have taken
preparatory steps and we
recognise that but RMT cannot
stand by and allow the shipping
industry a free run at our
members’ jobs on ferries and at
ports in the North Sea and
Channel. Leaving these alarmist
statements to the eleventh hour
is a crude ploy that causes
unnecessary instability in the
industry.
“In addition to the £725m
tonnage tax break the shipping
industry has enjoyed since
2008-09, the EU gave ferry
companies in the UK nearly
£23.7m in July specifically to
help with costs converting
vessels to low sulphur fuel,” he
said.
RMT helpline 0800 376 3706 :: january 2015 :: RMTnews
7
RMT SLAMS ‘ALARMIST’
STATEMENTS OVER
SULPHUR REGULATIONS
TONNAGE TAX FIGURES:
A Written Answer to John
McDonnell MP of February 6 2014
estimated that the Tonnage Tax
reduction in tax liabilities for
qualifying shipping companies
since the scheme was introduced
in 2000-01 had reached £1.45
billion (gross).
£ million
Financial year
Reduction in
tax liabilities
2000-01
60
2001-02
65
2002-03
70
2003-04
80
2004-05
90
2005-06
90
2006-07
100
2007-08
170
2008-09
225
2009-10
95
2010-11
100
2011-12
90
2012-13
110
2013-14
105
Total
£1.45 billion