Transfer of British Ships Registry

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A decision made (19.06.2008) regarding Shipping Registry

Decision Reference: MD-E-2008-0123
Decision Summary Title :	Transfer of British Ships Registry		Date of Decision Summary:	16th June 2008
Decision Summary Author:	Howard Le Cornu, Registrar of British Ships & Jason Lane, Director of Regulatory Services.		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/a
Written Report Title :	Fisher Associates Report		Date of Written Report:	Draft Report February 2008
Written Report Author:	Fisher Associates		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)
Subject: Agreement to the transfer within the Economic Development Department of the British Ships Registry from Jersey Harbours to the Regulatory Services section of the Department.
Decision(s): The Minister approved the transfer of the 2009 budget for staff, income and expenditure from Jersey Harbours, a States Trading Operation, to the Regulatory Services section of the Department with effect from 1st January 2009. The Assistant Minister also agreed the transfer of reporting lines for Registry staff in July 2008, and to appoint a new Registrar, in accordance with article 188 of the Shipping Law.
Reason(s) for Decision: To separate the commercial port from Government regulatory functions by transfer of the British Ships Registry to the Marine Compliance function provided by Regulatory Services, within the Economic Development Department. The role of the Registrar is a regulatory one in ensuring inspection, survey and coding functions for Jersey ships worldwide. A key conclusion of the research carried out by Fisher Associates (Jersey Register of British Ships; business case for expansion, February 2008) was that the Registry should properly be directed and managed within the Maritime Compliance function and not by Jersey Harbours directly. This change will allow Jersey Harbours to avoid conflicting interests and allow the business to be more commercial.
Resource Implications: Transfer of Registry Budget, £90,700 and two FTE Staff in January 2009. Transfer of management responsibility of staff, July 2008.
Action required: Transfer Registry Budget and staff January 2009 and transfer management of staff July 2008, to be actioned by Jersey Harbours and Regulatory Services. Appointment of new Registrar of British Ships through formal process in accordance with article 188 of the Shipping Law, to be actioned by Regulatory Services.
Signature: Senator Philip Ozouf		Position: Minister for Economic Development
Date Signed:		Date of Decision (If different from Date Signed):

Transfer of British Ships Registry

Public

WRITTEN REPORT

Shipping Registry

The role of the Registrar is a Regulatory one. In much the same way as Port State Control seeks to ensure the safety of foreign shipping in Jersey waters, the Registrar has inspection, survey and coding functions concerning Jersey ships worldwide.

A paper was presented to the Harbours and Airport Committee in April 2005 that foresaw the need to transfer the Registrar’s role to the department and to relocate the Registry. However, there functions remain with Jersey Harbours. Jersey Harbours meets the administrative and staffing costs of the Registry. In turn it receives Registry income of approximately £70,000 p.a.

On the retirement of the Commercial Director at Jersey Harbours in April 2007, the Harbour Master was appointed as the Registrar. Whilst it may have been intended as a temporary appointment, such an appointment clearly exacerbates the conflict of interest between a Commercial Port and a Government regulatory function.

Research was commissioned in the autumn of 2007 concerning the future of Registry. On completion, this may indicate potential for growth in the number and size of ships registered in Jersey, with a ‘Gross Value Added’ benefit to the Island of £8.6m per annum. At this stage it remains to be seen whether the increase in business will produce sufficient benefit to outweigh the costs of the Registry. Any shortfall would have to be met by the States of Jersey.

Regardless of whether the Registry achieves effective expansion or how it is funded, a key conclusion of the research (Fisher Associates, Jersey Register of British Ships: business case for Expansion October 2007) was that it should properly be directed and managed by the Regulatory Services Directorate of the Economic Development Department, within the Maritime Compliance function and not by Jersey Harbours. Port State Control would be provided through that same function and the Maritime Compliance Manager would have overall responsibility:

‘There is a potential conflict between the legal enforcement side of a Registry and the Port’s Commercial Business’ and ‘a more suitable home for the Registry would logically be with Maritime Compliance, and this should also include the Port State Control responsibilities and Maritime Casualty and Death investigations’.

The difference therefore between Jersey and the UK, in legislative as well as organisational terms, is the role of the Harbour Mater beyond port management, the confines of the pilotage zones and inshore waters. In today’s complex world with a great deal of water-borne leisure activity and with Jersey’s greater international profile than in the past, government maritime regulatory functions and port operational ones are not really compatible within a single structure.

H Le Cornu

Registrar of British Ships

Dated 19th June 2008