One of the more important commercial niches that Malta has managed to develop over the years is undoubtedly that of the registration of ships.
Our registry of ships falls under one of the three directorates within the Malta Maritime Authority, that is, the Merchant Shipping Directorate.
This industry developed over the last 30 years or so. In its inception in 1973, our registry had a mere 27 ships with a gross tonnage of just over 7,000. Today, we have more than 4,000 ships with a gross tonnage of over 24 million. In truth, the industry really saw a boom in the late 1980s and early 1990s. During this period, however, due to the laxity of our laws, Malta was being given a bad name, in the sense that we were not paying enough attention to quality and security and allowing our flag to be regarded as one of convenience.
Over the years, and this with the approval and backing of the Labour Party in opposition, we have totally overhauled legislation to the point that today we are totally in line with international standards and regulations, emanating from Marpol. Furthermore, the directorate, in 1993, introduced a system of conducting random inspections of Maltese ships worldwide using the services of its own global network of inspectors. The results and the performance of the inspectors are closely monitored by the MMA's technical department.
In the period October 2004 to September 2005, a total of 915 inspections for a total gross tonnage of over 17 million were carried out at 267 ports in 61 countries worldwide. A total of 54 ships were detained by the directorate until it was ascertained that they had been brought up to the required standard.
Thus, one can see that over the years Malta has been projecting more seriousness in this regard. For a time, more stringent regulations and security measures adversely affected the industry and we witnessed, over the last few years, a considerable drop in the gross tonnage and the number of vessels registered under our flag.
Furthermore, it must be pointed out that we also experienced a substantial slowdown in the percentage increase of such tonnage during the previous few years. Though we are still quite far off the peak attained in 1999, when our gross tonnage was over 28,500,000, that is 4,500,000 more than today, happily the trend has been reversed and it appears that we are steadily on the rise once again. Today, in fact, Malta has the second largest ship registry in Europe and is among the top 10 in the world. What is very interesting to note is that the increase in tonnage has not affected the quality. In fact, while the average age of all vessels registered over the previous couple of years was of 14.5 years, today the average age of ships of 100 gross tonnage and over has gone down to 9.9 years.
On the other hand, the average age for deletion of registration, according to this year's estimates was of 15.82 years, which is more than acceptable.
These statistics indicate that the policy being adopted by our flag administration has started to focus on quality shipping and is ensuring that ships with a poor safety and marine pollution record do not operate under the Maltese flag. It must be stated however that, notwithstanding all our efforts, as has been explained, in order to upgrade the prestige of our flag, we might soon face serious new challenges emanating from Brussels.
Last year, during a meeting of ministers of justice held in Luxembourg, it was proposed to introduce new regulations with regard to ships registered in countries pertaining to the European Union and this regarding issues of pollution. These regulations go beyond that which is required by the international maritime organisation known as Marpol. These new regulations contemplated very harsh penalties not found elsewhere.
Happily, Cyprus, Greece and Malta used their veto in this regard. The MLP in opposition was quick to declare it was totally in agreement with the government's position.
Undoubtedly, Malta should remain steadfast in opposing any EU legislation that would create disadvantages to its ship registry. In the same instance, however, Malta should use its clout and influence as one of the leading maritime countries in ship registration in order to push forward certain reforms before international fora, aiming at strengthening security measures that would apply universally and not only to countries pertaining to the EU.
Hopefully, any eventual overall loss in tonnage will be recovered as the Maltese register continues to gain credibility and attract more ship owners looking for a flag that inspires confidence and reliability. It is also good to note that there is no divergence of opinion and policy in this respect between the opposition and the government.
Dr Herrera is a Labour member of Parliament.