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Press Release - The Maritime and Coastguard Agency's Response to growth in the UK Merchant Fleet

 

11 February 2009

 

The Maritime and Coastguard Agency (MCA) coped with the substantial increase in size of the UK-registered merchant shipping fleet following tax changes in 2000. It delegated more of its ship survey work to the classification societies and used its existing staff resources more efficiently. But according to the National Audit Office, the Agency is now facing significant challenges. Its capacity to meet ship inspection targets is being stretched, and competing countries with their own merchant fleets are improving their performance, eroding the quality advantage of the UK flag.
 
Before the introduction of the tonnage tax in 2000, the MCA had not planned how it would handle the growth in the size of the UK-flagged merchant fleet. As the fleet grew from 1,050 vessels in 2000 to 1,518 by the end of 2007, the Agency responded with measures such as delegating to classification societies more of the survey work on vessel structure and equipment. It retains the survey work related to safety management systems and all the inspection work. Since 2000, it has met or exceeded most of its targets for this work with fewer marine surveyors than during the 1990s.
 
In 2007-08, for the first time, the Agency missed some of its targets for inspections of UK vessels. The risk is that vessels not complying with UK and international regulations will operate without detection. To stay ahead, the Agency also has to meet the further challenge of recruiting marine surveyors in a competitive market for their skills.
 
The UK, in seeking to attract ships to the UK flag, is increasingly competing with other flag states. The proportion of UK vessels detained overseas because they are not fit to go to sea remains among the smallest for any flag state, but the rest of the world is catching up. 
 
Tim Burr, head of the NAO, said today:
 
"The Maritime and Coastguard Agency coped with the recent sharp increase in the size of the UK-flagged merchant fleet by using its staff more efficiently and by delegating more of its survey work. But with fewer surveyors, the Agency is now struggling to inspect the increased fleet, which could put at risk the quality advantage of the UK flag. Better recruitment and succession planning will be needed, along with more strategic delegation to the classification societies."

 

 

Notes for Editors: 

 

  1. The Maritime and Coastguard Agency is an executive agency of the Department for Transport. It is responsible throughout the UK for implementing the UK government’s maritime safety and environmental protection policy. One of the Agency’s main roles is to maintain the safety, security and environmental standards of commercial vessels flying the UK flag (the “flag state” function), and of foreign vessels visiting UK ports and waters (the “port state” function), and the safety of seafarers serving on those vessels.
  2. Surveys. Under international maritime law all vessels are required to hold relevant, up to date safety certificates. Surveys are periodic and mandatory and are undertaken either by the Agency’s surveyors or a recognised Classification Society prior to issuing or renewing certificates. They cover specific items such as construction, equipment or operations on board a ship.
  3. Inspections. Inspections are selective and cover the whole vessel rather than specific areas. They are carried out to check that the conditions under which a vessel’s certificates were issued still hold. The Agency’s marine surveyors carry out general inspections and they are not delegated to classification societies.
  4. Press notices and reports are available from the date of publication on the NAO website, which is at www.nao.org.uk. Hard copies can be obtained from The Stationery Office on 0845 702 3474.
  5. The Comptroller and Auditor General, Tim Burr, is the head of the National Audit Office which employs some 850 staff. He and the NAO are totally independent of Government. He certifies the accounts of all Government departments and a wide range of other public sector bodies; and he has statutory authority to report to Parliament on the economy, efficiency and effectiveness with which departments and other bodies have used their resources.

 

Press Notice 09/09
All enquiries to Barry Lester, NAO Press Office:

Tel: 020 7798 7937
Mobile: 07748 181 692