According to Frank Fahey, Irish shipping companies will now have the choice of opting to be taxed on the size or tonnage of their ships rather than on profits and losses, a change which the Minister believes will afford greater flexibility, and give the shipping industry in Ireland a substantial boost.

'The Government approval for this unique flat rate tax linked to tonnage will act as a catalyst to regenerate the Irish shipping industry,' he enthused last week. 'The industry has been stagnant in recent years and this new tax regime will ensure a more attractive and enhanced fiscal environment.'

Mr Fahey added that EU State Aid approval for the new shipping tax measures was expected imminently, and that the planned tax changes mirrored the best practices of other member states in this area. 'I am assured by Irish fleet operators that they will keep their ships on the Irish register, end flagging out and grow their businesses in Ireland,' he concluded.