1. Background

The National Maritime Safety Authority Act 2003 established the National Maritime Safety Authority. Section 3 of the Act stated that “the Authority shall operate as a not-for-profit public body; and on a self-sustaining financial basis through various fees and levies provided under this Act or any other law…”.

A “Policy Submission for Members of the National Executive Council on the Establishment of the National Maritime Authority” dated 15 October 2002 recommended the “fee-for-service principle” in that “it enables users themselves to contribute to the financing of the NMSA and, by way of the Board of the NMSA, to have a say in the conduct of its affairs.”

The Submission noted that the navigational aids contributions (collected under the Merchant Shipping Act) and the oil spill levy (collected under the Protection of the Sea (Shipping Levy) Act), together with a new maritime safety regulatory functions levy would provide sufficient revenue to allow the Authority to carry out its statutory duties.

2. The Present Situation

Part VII, Division 4, Section 188 of the Merchant Shipping Act makes it mandatory that certain ship owners or the master of the ship “shall pay such navigational aid contribution in respect of the ship as are prescribed.” Section 195 – “Regulations for navigational aids” - states that regulations may be made for:

1. the rates and scales, whether on a voyage or on a periodical basis, of the navigational aids contributions payable in respect of ships; and
2. the manner in which the navigational aids contributions shall be paid; and
3. the times at which the navigational aids contributions shall be paid; and
4. the exemption of particular ships or of particular classes of ships from the requirements relating to payment of the navigational aids contributions;…….

The annual contribution rate is prescribed in Section 3 of the Merchant Shipping (Navigational Aids) Regulation. This Regulation was made approximately 30 years ago and the rate of contribution – “K30.00 for each metre or part of a metre, of the length of the ship” has not been changed in that period of time.

Without an increase in the rate of contribution, the Authority will be unable to maintain the recently refurbished navigational aids in a proper condition. It has been necessary to enter into a new maintenance contract for the upkeep of navigational aids around the country, and a satellite monitoring system is being implemented to ensure that all the lights and other navigational aids are operating. This contract has been tendered, but the costs are still considerable, and the rate of contribution must be increased in order for the Authority to make the requisite payments. The anticipated costs include K2 M to cover the cost of preventative and unscheduled maintenance and repair as a result of vandalism; K2 M for the cost of satellite monitoring (including equipment cost); K1.6 M in the Community Engagement Programme (to reduce the incidence of vandalism and have the community assist in the protection of navigational aids);