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Displaying items by tag: Seafarers' Scheme

The European Commission has approved extending an Irish scheme to refund employers' social security contributions for seafarers on certain vessels until December 2028.

The aim of the scheme is to increase the attractiveness for Irish shipping companies to employ seafarers, thereby enhancing the competitiveness of the Irish shipping sector.

The measure was originally approved by the Commission in September 1999, was extended in 2005,2011 and 2018, and is due to expire on December 31st 2022.

The Commission says that Ireland notified the prolongation of the scheme until December 31st, 2028, with a budget increase of €300,000, bringing the overall budget to €4.2 million.

Under the scheme, the aid will take the form of reimbursement of social security contributions to employers of seafarers working on vessels registered in the shipping register of a member state of the European Economic Area.

The registered vessels must be self-propelled and have more than 100 tons of gross tonnage.

The Commission says it assessed the scheme under the EU State aid rules, and in particular under Article 107(3)(c) of the Treaty on the Functioning of the European Union and the Guidelines on State aid to maritime transport.

The Commission says it found that the scheme continues to be “necessary and appropriate to promote the attractiveness of the employment of seafarers in Ireland and enhancing the competitiveness of Irish ship operators”.

It said that the measure “continues to be proportionate, as it is limited to the minimum necessary, and to have a limited impact on competition and trade between member states”, and so extension is in line with EU State Aid rules.

Published in Ports & Shipping

Ferry & Car Ferry News The ferry industry on the Irish Sea, is just like any other sector of the shipping industry, in that it is made up of a myriad of ship operators, owners, managers, charterers all contributing to providing a network of routes carried out by a variety of ships designed for different albeit similar purposes.

All this ferry activity involves conventional ferry tonnage, 'ro-pax', where the vessel's primary design is to carry more freight capacity rather than passengers. This is in some cases though, is in complete variance to the fast ferry craft where they carry many more passengers and charging a premium.

In reporting the ferry scene, we examine the constantly changing trends of this sector, as rival ferry operators are competing in an intensive environment, battling out for market share following the fallout of the economic crisis. All this has consequences some immediately felt, while at times, the effects can be drawn out over time, leading to the expense of others, through reduced competition or takeover or even face complete removal from the marketplace, as witnessed in recent years.

Arising from these challenging times, there are of course winners and losers, as exemplified in the trend to run high-speed ferry craft only during the peak-season summer months and on shorter distance routes. In addition, where fastcraft had once dominated the ferry scene, during the heady days from the mid-90's onwards, they have been replaced by recent newcomers in the form of the 'fast ferry' and with increased levels of luxury, yet seeming to form as a cost-effective alternative.

Irish Sea Ferry Routes

Irrespective of the type of vessel deployed on Irish Sea routes (between 2-9 hours), it is the ferry companies that keep the wheels of industry moving as freight vehicles literally (roll-on and roll-off) ships coupled with motoring tourists and the humble 'foot' passenger transported 363 days a year.

As such the exclusive freight-only operators provide important trading routes between Ireland and the UK, where the freight haulage customer is 'king' to generating year-round revenue to the ferry operator. However, custom built tonnage entering service in recent years has exceeded the level of capacity of the Irish Sea in certain quarters of the freight market.

A prime example of the necessity for trade in which we consumers often expect daily, though arguably question how it reached our shores, is the delivery of just in time perishable products to fill our supermarket shelves.

A visual manifestation of this is the arrival every morning and evening into our main ports, where a combination of ferries, ro-pax vessels and fast-craft all descend at the same time. In essence this a marine version to our road-based rush hour traffic going in and out along the commuter belts.

Across the Celtic Sea, the ferry scene coverage is also about those overnight direct ferry routes from Ireland connecting the north-western French ports in Brittany and Normandy.

Due to the seasonality of these routes to Europe, the ferry scene may be in the majority running between February to November, however by no means does this lessen operator competition.

Noting there have been plans over the years to run a direct Irish –Iberian ferry service, which would open up existing and develop new freight markets. Should a direct service open, it would bring new opportunities also for holidaymakers, where Spain is the most visited country in the EU visited by Irish holidaymakers ... heading for the sun!