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Government cuts affect RFA, Cadets and Tax Relief

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  • Government cuts affect RFA, Cadets and Tax Relief

    http://www.nautilusint.org/Campaigns/pa ... eline.aspx

    INTRODUCTION
    Britain relies heavily on ships and seafarers for the safe and efficient movement of more than 90% of its imports and exports.

    But with government spending cuts threatening to reverse the Merchant Navy?s recovery of the last 10 years, and to cut vital support for UK seafarer training and employment, Britain's status as a leading world maritime centre is being severely compromised.

    REASON FOR CAMPAIGN
    Under its public spending cuts, the UK government has announced that:

    ?the RFA will suffer considerable reductions to fleet and sea staff. Read more here.
    ?Seafarers? Earning Deductions, under a review of tax allowances, and the tonnage tax scheme are being scrutinised for possible abolition
    ?the future of the Support for Maritime Training Scheme (SMarT) is being reviewed
    ?vital safety services such as emergency towing vessels (ETVs) and offshore fire fighting could be withdrawn. Find out more.
    ?the number of coastguard maritime rescue coordination centres may be halved, meaning a loss of around 226 jobs
    ?Maritime & Coastguard Agency survey and certification work may be handed over to classification societies
    Recent events show that demand for emergency services in UK waters is as high as ever. And the MCA is already under immense financial pressure and is experiencing shortfalls in search and rescue provision.

    And if that?s not enough, the Crew Relief Costs Scheme - which assists shipowners with travel expenses for officers and ratings joining and leaving ships abroad - is no longer being supported, despite the Chamber of Shipping highlighting how the scheme is the only permitted state aid that directly supports the employment of British seafarers.

    The Union is concerned that this is all being driven by cost cutting rather than based on assessment of need. Nautilus is proud of its non-political status ? we support shipping and seafarers regardless of which party is in power. And that is why we are urging ministers to rethink the cutbacks in maritime-related spending.

    ACTION
    Nautilus argues that recruitment and training needs to be maintained in order to prevent not only a national, but an international seafaring skills crisis.

    Shipping expenditure forms only a fraction of the overall DfT budget yet it is one of the biggest earners for the UK. We understand that cuts are taking place in all sectors but it is of paramount importance to focus on core areas and maintain the skills base.

    The government needs to work with the maritime industry to develop an agreed maritime policy with clearly defined objectives for the future of the UK fleet and national seafarer skills base. The government needs to show its commitment to the maritime sector, as it is vital for the future of Britain.

  • #2
    Re: Government cuts affect RFA, Cadets and Tax Relief

    This is quite worrying, as the SMaRT funding and 'tonnage tax' relief is the encouragement for companies to sponsor cadets. Without that, we could see a lot of the smaller cadetships drying up, and places with other companies reducing. If your planning on applying for a cadetship, I'd recommend you do it now, just in case the government does decide to cancel the SMaRT funding. Whilst the news above is factual, it's also a little scaremongering from the unions to encourage you to join them (which I do recommend).

    The tax relief is something that has been attacked time and time again, but it exists purely out of ensuring we have a merchant navy for military capability (generally encouraged by the falklands war where merchant vessels were used), if you want to know the history visit :
    http://www.parliament.uk/briefing-papers/SN01221.pdf
    http://www.parliament.uk/briefingpapers ... -00595.pdf

    "The Finance Acts of 1974 and 1977 increased the tax on earnings from overseas employment. The same legislation introduced special tax relief for UK residents employed overseas for significant periods. The stated aim of this relief was to encourage those at the sharp end of exporting, creating jobs in the UK. A more generous provision was later introduced for seafarers on defence grounds. The main aim of the seafarers? provision was to provide support for a merchant shipping fleet that could be called upon in war time, by encouraging use of UK crew on UK-owned deep-sea vessels."

    Comment


    • #3
      Re: Government cuts affect RFA, Cadets and Tax Relief

      Cheers guys, good to know some of the insider info, have the unions been successful before on issues like these?

      Comment


      • #4
        Re: Government cuts affect RFA, Cadets and Tax Relief

        IIRC the tonnage tax has been saved and ditto SED, though the Union opinion is a little scare mongering it has some valid points, Ditto SMART funding..........this industry can be a bit odd on occasions and at the moment this is one of those times....cuts cuts cuts ;0
        Trust me I'm a Chief.

        Views expressed by me are mine and mine alone.
        Yes I work for the big blue canoe company.
        No I do not report things from here to them as they are quite able to come and read this stuff for themselves.


        Twitter:- @DeeChief

        Comment


        • #5
          Re: Government cuts affect RFA, Cadets and Tax Relief

          I am guessing that is the same in any industry atm.

          Comment


          • #6
            Re: Government cuts affect RFA, Cadets and Tax Relief

            Remember it's in the unions interest to make everything sound like the end of the world - scared people are more likely to join and give them money. Best to take what they say with a pinch of salt. Please note am not saying they're lying merely being selective in there use of facts, spinning, or what ever it's called these day(don't want to start a right/left flame war).

            Comment


            • #7
              Re: Government cuts affect RFA, Cadets and Tax Relief

              From what I understand, it went through parliament in 2010 and was reviewed and saved Chiefy, but this is now another review...
              But yes, it is under review, but I don't think it's quite the end of the world like the union wants us to think as Lewis says.

              Comment


              • #8
                Re: Government cuts affect RFA, Cadets and Tax Relief

                Ahh didnt know it was another review, I was under the impression that was the end of it (2010 review).

                But from last years review even the taxman said it wasnt worth removing it BUT that they wanted to tighten it up so that only Certified Seafarers on ships could get it and not the hairdressers / ROV pilots / Divers and the likes which is how it is currently (rightly or wrongly)
                Trust me I'm a Chief.

                Views expressed by me are mine and mine alone.
                Yes I work for the big blue canoe company.
                No I do not report things from here to them as they are quite able to come and read this stuff for themselves.


                Twitter:- @DeeChief

                Comment


                • #9
                  Re: Government cuts affect RFA, Cadets and Tax Relief

                  Latest news on SMarT funding:

                  1. The budget for 2011/12 is ?12m.
                  2. The Government will continue to support those training for their first Certificate of Competency (CoC) under SMarT 1.
                  3. Funding for those training for their second CoC will cease under SMarT 2. Any funds left over at the end of the year will be allocated to those SMarT 1 trainees on the HND, S/NVQ, Foundation Degree, Honours Degree or Scottish Diploma who would have been eligible for the SMarT 2 1st Instalment.
                  4. The Government will continue to support those training for their STCW II/4 or III/4 Watch Rating certificate under SMarT 3 or SMarT 5 depending on the route they are following.
                  5. The Government will continue to support those training under the Rating to Officer route (STCW II/4 to II/1 or III/4 to III/1).

                  Read the full MGN 431 here: http://www.dft.gov.uk/mca/mgn_431.pdf

                  Size4riggerboots

                  Moderator
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                  • #10
                    Re: Government cuts affect RFA, Cadets and Tax Relief

                    So SMarT could be in doubt for those cadets starting Jan 2012 onwards? *confused* i.e companies might not be able to claim it?

                    Comment


                    • #11
                      Re: Government cuts affect RFA, Cadets and Tax Relief

                      It will be reviewed again around this time next year probably. Don't get your knickers in a twist, they've had their budget cut for this year, but are still sponsoring entry level candidates. I doubt very much that they would cut the funding entirely, so chill!

                      Size4riggerboots

                      Moderator
                      Blog tWitterings Flickr Tumblr Faceache

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