Boom and bust?

Fortunes are mixed for both French shipowners and especially for its shipbuilders.

After a fall in 1995, the French fleet has slowly recovered and has been static at 210 vessels grossing 4.2 million tonnes. However, the stable figures mask heightened concerns about the availability of French officers and the abolition of duty-free goods.

As far back as 1980 shipowners were voicing concerns about the lack of officer training. Now a recent survey by the French Shipowners` Association has predicted that there will be a shortage of between 200 and 1000 officers by 2002. According to the Association, the problem is two- fold: lack of training places at French merchant navy colleges and the difficulty in recruiting young people.

Offsetting that are the changes to the tax system which were implemented in June. Whereas previously both individuals and companies investing in shipping could claim tax benefits for up to nine years (provided the vessel was domestically flagged), now only companies can claim the benefit. The Shipowners` Association expect this change to slow the rate of fleet renewals – which will ease the officer training situation.

Other concerns centre around the effect the abolition of duty-free goods will have on SeaFrance and Brittany Ferries. French shipowners are asking the EU to delay the abolition by up to 10 years. This will give shipowners time to adjust and also allow member states to harmonise their tax regimes. If harmonisation does not happen, ferry operators may look at opening shore-based shops to allow passengers to purchase goods at favourable rates of duty.