2016 PROPOSED SHIPPING REGISTRY FEES
Purpose of Report
Financial Direction 4.1 states that increases in States fees and charges should be limited to 2.5% per annum with variation from that to be subject to the prior approval of the Minister for Treasury and Resources. Under Delegation 2.1, authority for agreeing non-contentious charge increases above 2.5% may be delegated to the Treasurer of the States.
The Treasurer has now given approval to proposed increases in fees and charges in respect of the registering of ships with effect from the 1 January 2016.
The aim is that the fees continue to apply the user pays principle and reflect as far as possible the present costs of providing services. Fees have historically been made under the user pays principle.
Fees were last increased in January 2015, having not changed in three years. The inflation rate over those three years was 5.4% but at the time a review was underway and the increase was held at 2.5% to accord with States policy and as a holding position. That review is now complete and a more substantial change in charges is now sought.
Background
The Registry transferred to Maritime Compliance within the Economic Development Department from Jersey Harbours in 2008. As a Trading Operation, Jersey Harbours established the fee structure with the aim of ensuring that earnings at least match expenditure. In reality a good deal of hidden costs were not passed on to the user.
As far as possible, it is the Economic Development Department’s policy to operate this service on a user pays principle whilst remaining competitive. However, this approach has to be tempered: The Island has a responsibility at least to maintain a shipping register for local owners and companies. It also has a responsibility to maintain the legal and administrative framework for shipping in Jersey waters. Furthermore, there are strong economic benefits of having a thriving international Registry in terms of the work it brings local finance and related businesses. For these reasons, the Minister is clear that full cost recovery may not be possible and that it should not fall exclusively as a burden on ship owners.
Current charges have been compared with competitors and deemed low. Jersey remains significantly cheaper than the British Virgin Islands, Cayman Islands, Isle of Man and Marshall Islands for most fees. Guernsey does not have a significant commercial vessel register. Its rate for full registration (£300) is thus lower than Jersey’s (which varies between £340 and £410). Other charges are higher: For example full renewal is £90 in Guernsey but just £66 in Jersey. For the Small Ships Register, Jersey charges £58, whilst Guernsey charges £60.
The Review
A review (conducted by Moore Stephens) carried out a thorough analysis of the Registration fees and compared the structure (as well as the actual fees) with other jurisdictions. They propose both a consolidation of anomalous and variable fees as well as some significant changes. Functions which do not cover the cost of fulfilling them are rightly being given a greater share of the increase. It is hoped that if phased and not brought in all at once the proposals can remain competitive.
Additionally, not all of the proposals are to be implemented – this is because in the first place the review considered the concept of Jersey’s Register being fully open to all ship sizes and types and this is not yet something that is ready to move forward. Secondly, the review suggested annual fees to maintain registration. This would be expensive to administer given the size of the fleet (1,899 vessels) and its location over the world. Legislative changes would also be needed to bring in annual fees.
Crucially, it has therefore been decided not to increase fees for initial registration of privately owned pleasure craft where the owner either is a local resident or owns the vessel through a local company structure. This is one of the most expensive transactions and it is not thought wise to put clients off. Re-registration however, has long been out of line and would rise from £66 to £100. Small fishing boat examination and certification would increase by just 3.1% overall and the popular local small ship registration would only increase by 3.4%. It is proposed that the charges for other transactions will rise significantly (by a mean of 13%).
The estimated financial impact of the increased charges on the Shipping Register’s budget is shown in the table below:
Notes:
- 2013 expenditure included a £50,785 cost of research into the economic benefit of an unrestricted register and investment in a new database.
- 2014 expenditure included a further £14,015 for the same projects.
- In predicting 2016 income, it has been assumed that the number of chargeable transactions will remain in line with current levels and that the fee increases do not damage competiveness.
Resource Implications
Further review and annual fee increases, together with growth through effective marketing, are expected to deliver additional income per annum so that cumulatively the budget would be zero again within the lifetime of the States proposed 2016 – 19 Medium Term Financial Plan.
Key issues to be kept under review will be:
(i) Maintaining real income based on RPI changes,
(ii) Better measurement of the true cost of registration procedures,
(iii) Ensuring non-chargeable costs are identified in a separate business unit,
(iv) Introduction of annual charges to maintain registration for commercial shipping,
(v) The competitive position of Jersey in comparison with other jurisdictions,
(vi) Legislative changes regarding Jersey compliance with international maritime standards,
(vii) Assist the Economic Development Minister to meet pressures elsewhere within the Department.
Decision
It is now necessary to approve increases in user pays fees and charges, as set out below, to ensure that the Economic Development Department continues to meet its statutory maritime administrative duties whilst recovering as far as possible the costs of providing the shipping registry service.
The Minister for Economic Development is thus asked to approve this proposal so that the Law Draftsman may prepare the necessary Fees Order to take effect from 1 January 2016.
18 September 2015
2016-18 Proposed Schedule of Fees
Fees Under the Shipping (Jersey) Law 2002 | | | |
1 | 2 | 3 | 4 | 5 |
| | £ | £ | % |
Enactment and provision (Article or Regulation) | Action | Current Fee | Proposed Fee | Change |
Shipping (Registration) (Jersey) Regulations 2004 | | |
3(7) | Issue of transcript | 33 | 50 | 51.5% |
6(7) | Notification of change of representative person | 33 | 50 | 51.5% |
7(1)(b) | Application for full registration of ship – | | | |
(a) if the ship is a pleasure vessel of 150 gross tons or less and the owner of the ship is an individual ordinarily resident in Jersey or a body corporate established under Jersey law | 340 | 340 | 0.0% |
| | | |
| (b) in any other case | 410 | 440 | 7.3% |
7(1)(b) | Application for simple registration of fishing vessel (as referred to in Regulation 7(12)(b)) | 52 | 55 | 5.8% |
8 | Provisional registration | 111 | 125 | 12.6% |
9(2) | Where declaration of intent is made to accompany application for registration, additional fee | 33 | 50 | 51.5% |
17(3)(c) | Application for renewal of registration | 66 | 100 | 51.5% |
18(8) | Application to register transfer of ownership | 111 | 125 | 12.6% |
19(7)(c) | Application to register transmission in ownership | 111 | 125 | 12.6% |
20(3)(c) | Application to record change in particulars | 33 | 50 | 51.5% |
21(3)(b) | Application to record change of name | 43 | 50 | 16.3% |
23(1)(a) | Cancellation of registration, where on application | 33 | 50 | 51.5% |
23(2)(a) | Issue of closure transcript on request | 33 | 50 | 51.5% |
24(4) | Registration of mortgage | 111 | 125 | 12.6% |
24(5) | Registration of discharge of mortgage | 111 | 125 | 12.6% |
25(2) | Registration of priority notice of intending mortgagee | 33 | 50 | 51.5% |
25(10)(b) | Renewal of registration of priority notice | 16 | 25 | 56.3% |
26(5) | Registration of transfer or transmission of mortgage | 111 | 125 | 12.6% |
30(1) | Issue of duplicate certificate | 43 | 50 | 16.3% |
31(1)(a) | Transfer within the register | 340 | 352 | 3.5% |
Shipping (Local Small Ships Registration) (Jersey) Regulations 2004 | | |
2(2)(b) | Application for registration | 58 | 60 | 3.4% |
2(8)(b) | Application for extension | 58 | 60 | 3.4% |
5(1) | Issue of duplicate certificate | 26 | 30 | 15.4% |
2(2)(b), 2(8)(b) or 5(1) | Registration, extension or issue, where requested to be done within 24 hours and so done, instead of relevant fee prescribed above. | 111 | 125 | 12.6% |
Shipping (Tonnage) (Jersey) Regulations 2004 | | |
3(1) | Measurement of ship (24m in length or over) | £82 per hour | £85 per hour | 3.7% |
8(1) | Issue of International Tonnage Certificate (ship 24m in length or over) | 26 | 27 | 3.8% |
11(5) | Issue of new International Tonnage Certificate (ship 24m in length or over) | 26 | 30 | 15.4% |
13 | Measurement of fishing vessel (15m in length or over but less than 24m) | £82 per hour | £85 per hour | 3.7% |
15 | Issue of certificate (fishing vessel 15m in length or over but less than 24m) | 14 | 15 | 7.1% |
18 | Measurement of ship (less than 24m in length) other than fishing vessel or of fishing vessel (less than 15m in length) | £82 per hour | £85 per hour | 3.7% |
22(5) | Issue of certificate (ship less than 24m in length other than fishing vessel) | 26 | 30 | 15.4% |
| Issue of certificate (fishing vessel less than 15m in length) | 43 | 30 | -30.2% |
24(1) | Issue of International Tonnage Certificate (non-Jersey ship) | 26 | 30 | 15.4% |
Shipping (Fishing Vessels Safety Codes of Practice) (Jersey) Regulations 2015 |
3(1)(a) | Issue of fishing vessel certificate | 43 | 50 | 16.3% |
3(1)(b) | Examination of vessel | 52 | 54 | 3.8% |
| Annual examination - vessels of 15m in length or over. | 97 | 100 | 3.1% |
3(2) | Grant of exemption | n/a | 60 | n/a |
3(3) | Extension of certificate or exemption | n/a | 60 | n/a |
3(4) | Acceptance of equivalent certificate | n/a | 60 | n/a |
Shipping (Load Line) (Jersey) Regulations 2004 | | |
8 | Initial survey and renewal and subsequent annual surveys | £83 per hour | £85 per hour | 2.4% |
9(1) | Issue of certificate | 66 | 70 | 6.1% |
18(1) | Issue of international load line exemption certificate | 18 | 25 | 38.9% |
19(1) | Issue of Jersey load line exemption certificate | 18 | 25 | 38.9% |
Shipping (Training, Certification and Manning) (Jersey) Order 2004 | | |
Regulation 5 of the UK Manning Regulations | Issue of safe manning document | 205 | 215 | 4.9% |
| Issue of written exemption | 66 | 70 | 6.1% |
Shipping (Safety of Navigation) (Jersey) Order 2009 | | |
6(1) | Consideration of grant of approval under SOLAS regulation | £83 per hour | £85 per hour | 2.4% |
6(3) | Issue, alteration or cancellation of written approval | 66 | 70 | 6.1% |
7(1) | Consideration of exemption or equivalence | £83 per hour | £85 per hour | 2.4% |
7(2) | Issue of written exemption or equivalence | 66 | 70 | 6.1% |
Shipping (Survey and Certification) (Jersey) Order 2013 | | |
Regulation 4 of the UK 1995 Regulations | Survey of passenger ship | £83 per hour | £85 per hour | 2.4% |
Regulation 4A of the UK 1995 Regulations | Survey of Jersey passenger ship to which the Directive applies | £83 per hour | £85 per hour | 2.4% |
Regulation 7 of the UK 1995 Regulations | Survey of cargo ship structure etc. | £83 per hour | £85 per hour | 2.4% |
Regulations 10, 11, 13, 14, 17(1) or 18 of the UK 1995 Regulations | Issue of certificate | 66 | 70 | 6.1% |
Shipping (Safety Code – Yachts and Small Ships) (Jersey) Regulations 2013 | | |
3(3) | Grant of exemption | 66 | 70 | 6.1% |
3(4) | Acceptance of equivalent provision etc. | £83 per hour | £85 per hour | 2.4% |
4(1) | Examination of vessel | £83 per hour | £85 per hour | 2.4% |
| Issue of certificate | 66 | 70 | 6.1% |
4(2) | Recognition of equivalent certificate | 66 | 70 | 6.1% |
END
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