EU Membership May Bring Changes To Maltese Shipping

by Robert Lee,Tax-News.com, London

02 July 2003

UK Parliamentary under secretary for transport, David Jamieson was in Malta this week where he explained during a public discussion how EU membership will bring about new regulations in Malta's substantial shipping industry.

In particular, Mr Jamieson spoke of the need for potential reform of tonnage tax so that the EU does not consider that Sit amounts to state aid of the maritime industry. However, the under secretary observed that Britain has seen benefits from its tonnage tax which has "created a favourable climate for British shipping." Jamieson claimed that combined with amendments to the registration process, UK registered shipping has increased by about 50% in two years.

"I understand that the tonnage on the Maltese shipping register last year amounted to some 27 million gross tons, making Malta the fifth biggest merchant fleet of the world, ranking higher than countries such as the United States of America, Japan and China,” observed Jamieson, illustrating the potential impact of any fresh EU regulation will have on the island's shipping.

The under secretary also attempted to allay misgivings some Maltese may have about being dragged into a European superstate. Jamieson stated that Malta will suffer no loss of national identity from joining the euro club and trotted out one of the UK government's more favoured soundbites that Britain "has no desire to see a United States of Europe. Instead we want a united Europe of states – a unity that also accommodates diversity."

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