One of the most important directorates within the Malta Maritime Authority is without doubt the merchant shipping directorate. This directorate is responsible for the registration of ships and similar vessels. It must be pointed out that today ship registration has become an important economic niche in Malta. As a point of interest, last year this line of activity generated almost Lm1.5 million in profit for the MMA. This notwithstanding, however, this economic activity generates incalculable amounts of income in the private sector and stimulates an impressive amount of work especially with regard to the professional classes.
It is to be pointed out that it was only in 1973 that Malta started attracting the registration of foreign vessels under our flag. In fact in 1973 there were 27 such ships registered here with a gross tonnage of 7,659. This industry reached its peak in the year 2000 when we had 3,048 vessels with a gross tonnage of 28,350,867 registered under the MMA. The peak years were in fact those between 1992 and the year 2000, when our business practically tripled. It is also interesting to note that from 1973 to 2000 this industry flourished and registered a constant yearly increase in the amount of tonnage registered under our flag.
Unfortunately, however, during these last four years we have been witnessing a steady decline in this important commercial activity. Sadly, when we examine the MMA's annual report of activities we will find that to date there are 360 vessels registered here, having a gross tonnage of 24,539,986. This shows a decrease of about four million gross tonnage from the peak year.
Though it is true that the amount of vessels registered under the Maltese flag appears to be higher than that of 2000, it will result that this is mainly due to the increase in registration of pleasure yachts and fishing vessels which are of low tonnage. In fact while in the year 2002 we had 1,475 pleasure yachts registered and 150 fishing vessels bearing a gross tonnage of 28,920 and 15,099 respectively, last year there were 1,787 pleasure yachts and 408 shipping vessels, having a gross tonnage weight of 37,450 and 19,340 respectively.
Though varied may be the reasons for this unfortunate downtrend, more stringent regulations introduced in our country are surely to blame. For example, our shipping registrar is now prohibited from including single hull tankers. This single factor alone led to the cancellation of no fewer than 66 single hull tankers for a total gross tonnage of over 2.5 million and this between October 2003 and September 2004. In all during that period, again because our registry is exercising more restraint, no fewer than 349 vessels for a total of more than 5.5 million gross tonnage were cancelled from our registry.
Unfortunately, Malta has been receiving unfair international criticism especially from countries like France which comment that in our euphoria to promote Malta as a flag of convenience we were proving to be too lenient in our security measures. This does not, however, appear to be the case and the fact that the Maltese authorities were completely exonerated by the French court in the so-called Erika incident vindicates this assertion.
Maritime safety, including the technical aspects of local and international legislation, is the responsibility of the technical department which naturally works in close liaison with the registry of ships and provides technical advice to the registrar general and the registrars. It is important to note in this respect that between October 2003 and September 2004, a total of 921 inspections covering a total gross tonnage of over 17.5 million were carried out in ports in 22 countries and a considerable amount of ships were retained by the directorate. It is also important to note that our network of overseas flag state inspectors numbers 119 inspectors in 61 countries.
Taking account of all this it can hardly be said that our country lacks seriousness and that it is not functioning within the framework of international regulations such as the Marpol.
This notwithstanding, however, there appears to be more trouble ahead for our ship registration industry. In the meeting of the Council of Ministers of Justice and Home Affairs, held at the end of last summer in Luxembourg, it was strongly proposed that the European Union should establish harsh penalties on vessels registered in an EU country, which penalties would apply also to the owners and captains of the ships in question and this with regard to pollution matters.
This was rather uncalled for since there already exists international criteria regarding such issues which Malta, together with other European states, strictly adhere to. Such legislation will therefore make if far less attractive for ship owners to opt to register their ships in countries like Malta when they can choose to go elsewhere.
At that important meeting we happily note that Malta together with Cyprus and Greece used their veto and rejected those propositions. The Labour Party concurred with the position taken by Malta.
In this respect it must be pointed out that on February 23, unfortunately, the European Parliament adopted a recommendation at second reading stage on ship-source pollution and the introduction of criminal sanctions, which has a direct impact on the Maltese shipping register. As correctly stated by MEP Simon Busuttil the proposed law went too far because it placed shipping in the EU at a disadvantage when compared to shipping outside EU waters.
In the light of all this it would be wise for the major political parties in Malta to strive for political consensus with regard to Malta's policy on maritime affairs. It is also essential for Malta's politicians, both local and foreign, to strive at preserving at all costs this indispensable sector of the Maltese economy before all is lost.
Dr Herrera is a Labour MP.