June 2, 2008
Canadian shipowners seek end to ship import duty
The Canadian Shipowners Association today called on Ottawa to eliminate the 25 per cent federal duty on ships purchased abroad, arguing it has failed to successfully promote shipbuilding in Canada.
"The Canadian shipping fleet is aging, and as we approach the need for increased renewal, it has become clear that Canadian shipyards cannot build the new vessels required in a cost-competitive and timely manner" said Don Morrison, President and CEO of the Canadian Shipowners Association.
"The new vessels will improve the Canadian industry's environmental performance and will reduce the environmental footprint of what is already the most ecologically-sound transportation mode," he said.
The association is proposing a three point plan: eliminating the duty on new ships; eliminating the duty on second-hand vessels after a 10 year period; maintaining the duty on all maintenance work to protect the Canadian shipbuilding industry.