A Danish expert group has suggested abolishing the Danish International Ship Register (DIS) scheme, sparking strong opposition from Danish Shipping, the country’s shipowners’ organization.
The proposal comes from the Frigast committee, which aims to overhaul Denmark’s business support schemes. The committee suggests scrapping the DIS scheme, which exempts seafarers from paying income tax. This move is part of larger efforts to increase structural employment by 4,000 full-time workers and release about DKK2bn annually.
Christian Frigast, leading the group, believes eliminating the DIS scheme would likely lead to fewer Danish seafarers and ships flying the Danish flag. However, Danish Shipping highlights that the full impact, including effects on onshore employment, has not been thoroughly assessed.
The EU-approved DIS scheme has been in place since 1988, enjoying broad political support. Denmark boasts the world’s seventh-largest maritime industry, employing over 100,000 individuals within the maritime cluster.
Danish Shipping warns against the potential consequences of abolishing the DIS scheme. They describe the proposal as both sad and worrying, urging the government not to implement it. The organization predicts adverse effects such as decreased competitiveness compared to countries like Norway, Germany, and Singapore, as well as a decline in the number of Danish seafarers and skilled maritime employees.
Anne H. Steffensen, CEO of Danish Shipping, strongly emphasizes the risks involved, stating, “It will be a disaster for Danish shipping to abolish the DIS scheme.” She predicts significant flagging of Danish ships to other maritime nations, followed by job losses ashore and the gradual erosion of Denmark’s maritime workforce.
Steffensen further adds, “Abolition of the DIS scheme will lead to significant and massive flagging of Danish-flagged ships to neighboring countries and other maritime nations around the world. Immediately, positions ashore must follow and in time we will also lose the Danish seafarers and important maritime skills.”
Danish Shipping stresses the importance of maintaining the DIS scheme to sustain Denmark’s competitiveness in the global maritime industry. They urge policymakers to consider the long-term ramifications before making any decisions.
This proposal underscores the delicate balance between economic reforms and preserving a thriving maritime sector. The outcome of this debate will significantly impact Denmark’s position in the global shipping landscape.
Source: splash247
