Shipping (Fees) (Jersey) Order: Amendment: Law drafting instructions

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 6 November 2015:

Decision Reference: MD-E-2015-0082
Decision Summary Title :	Shipping Fees		Date of Decision Summary:	18 September 2015
Decision Summary Author:	Registrar of Shipping		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 :	2016 Proposed Shipping Registry Fees		Date of Written Report:	18 September 2015
Written Report Author:	Registrar of Shipping		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Shipping Fees
Decision(s): The Minister has approved amendments to the Shipping (Fees) (Jersey) Order 2013.
Reason(s) for Decision: Prescribed fees are authorised by article 193 of the Shipping Law. 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 is now sought. In order to achieve more uniformity, the changes vary quite widely. On the one hand there will be no increase in 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. This is one of the most expensive transactions and it is not necessary to seek an increase at this stage. Re-registration however, only occurs every ten years and has long been out of line. This 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%. Charges for other transactions will rise by a mean of 13%. The Treasurer has given approval to increase fees above the 2.5% level so that as far as possible the present costs of providing services can be met. Further details are given in the attached report.
Resource Implications: There are no new financial, property, ICT or human resources issues arising.
Action required: Following the Ministerial Decision, the Law Draftsman will be requested to prepare the Order.
Signature: Senator L J Farnham		Position: Minister for Economic Development
Date Signed:		Date of Decision (If different from Date Signed):

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Shipping (Fees) (Jersey) Order 2013: Amendment: Law drafting instructions

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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