Member of the European Commission responsible for Transport

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1 Member of the European Commission responsible for Transport Quality Shipping Conference

2 It gives me great pleasure to offer you a warm welcome on behalf of all of the organisers of today s event. Lisbon, host city to the world EXPO with the theme The Oceans A Heritage for the Future is, of course, a natural setting for our Quality Shipping Conference - and the importance of this gathering is evident from the list of distinguished participants and speakers. There cannot have been many other occasions on which such a breadth of senior representatives of all sectors of the maritime industries and national and international maritime administration have been under the same roof at the same time. If quality of attendance is a guarantee of quality of results, then this Conference is already a success I believe that the nature of this Conference is also quite unique. The idea of bringing together all parts of the maritime sector in order to reflect on how each element could contribute to achieving higher quality in shipping of all kinds is somewhat new which is a little surprising, given the great complexity and the obvious interdependence of the shipping and shipping-related industries and services. Indeed, it was those features and the fact that overall success in advancing quality is, in many ways, conditional on the contribution which each constituent part is willing and able to make which convinced me that there would be general, practical value in trying to bring everyone together to pursue the dual mission of supporting good practise and eliminating sub-standard shipping. I m very grateful for the fact that Glenda Jackson, in her capacity as UK Maritime Minister and current President of the Ministers Council readily agreed to cooperate in the Quality Shipping Campaign, and I m also obliged to operators, users and service providers who have generously provided their insights and advice in the course of the Campaign so far. One of the features which has been registered by them, for instance, is the tendency for component parts of the maritime sector to apportion the blame for deficiencies in quality to other parts. There is, of course, a certain inevitability about that. Indeed it is a feature of most human and commercial relationships and it would be wrong to suggest that blame and credit should not be allocated when either are due. Today, however, I am confident that speakers will concentrate on the role of their own organisations and sectors in the responsibility chain, and on the contribution they can make towards an enhanced quality culture in shipping, rather than emphasising the (real or imagined) shortcomings of others. Certainly, that is the most fruitful way forward, especially when we all recognise that the great majority of participants in the maritime industries and services that does work to fulfil legal, commercial and ethical responsibilities has a common self-interest in promoting quality, encouraging effective self-regulation, and fostering full obedience to the law by everyone. 2

3 My belief in emphasising that positive approach has been confirmed by the numerous meetings which have been held between the Commission, the UK administration and various parts of the shipping industry during recent months. The interesting and productive ideas have come from the practitioners - and I am sure that there will be many more today and in future exchanges. Against that background, I want to refer specifically to the regulatory context in which shipping operates, and to three considerations which are relevant to the maintenance and improvement of quality: First, with the body of laws that now exist, and with the application of the ISM Code, I believe that less emphasis needs to be put on developing requirements relating to new regulatory technical standards for ships and crews and more resources, time and energy needs to be given to fair and effective enforcement. Part of the purpose of action in pursuit of quality should be to close the cost gap between responsible operators who comply with the rules and the irresponsible companies with substandard operations - not by reducing the performance of the best, but by insisting by all legal means on better performance from those who are inferior. Secondly, and following from that, operators with an established record of quality should be rewarded by fewer time-consuming inspections and formalities in ports. It is clear that - if port State control was improved and better targeted - it would not only fulfil its purpose of identifying and penalising serious deficiencies, it would also provide a practical means of fostering higher standards. It would be a positive inducement to high quality as well as a deterrent to low quality. The targeting system should therefore be further developed in order to focus more clearly and directly on the potential problem ships. Thirdly, public authorities can obviously play a crucial role in improving the standards of information about the condition of vessels by ensuring that the data is at all times comprehensive and accurate. Objectivity is also essential, of course both as a precondition of the reliability of information made available to cargo owners and as a safeguard for responsible owners. In recent months progress has clearly been made in these areas. The amendment of the EC Directive on Port State Control in order to introduce precise targeting factor values for ships should considerably improve focussing on potential problem ships, and - in October - a special task force will review the values given to these factors on the basis of the information gained from experience. As many here will also know, the April meeting of the Port State Control Committee of the Paris MOU agreed in principle that information on ship inspections and detentions should be made available to the industry, that a filtering mechanism should be introduced in order to highlight class-related deficiencies, and that the information on detained ships on the MOU internet website will include all detained ships and be made available monthly rather than three monthly. 3

4 In addition, more clarity has been introduced in the identification of responsibility for deficiencies found on board when they have been caused by an incident during a voyage to a port. Such deficiencies will not cause detention of the ship provided that information on the incident has been given to the port in advance. These are plainly all practical developments which can enhance the ability of public authorities to help the industry to help itself and, in doing so, foster good standards and practises of self-regulation in the cause of advancing quality in shipping by identifying and acting upon questionable or deficient vessel conditions. I am sure that more can and will be done - and I hope that the discussions today will offer suggestions for further areas in which progress can be made. In achieving that, I would urge that every sector of the maritime related industries serves their mutual interests by following three themes of activity which will help to give substance and dependability to self regulation, and consequently diminish the need to resort to further legalistic change. Firstly, by being proactive each sector of the industry will be able to prevent the deficient operators in those sectors from harming the good reputation and the commercial interests of those who act responsibly and obey the rules. Secondly, an element of bench-marking in order to make details about the shipowners and flags which can be considered the best of the class widely known is entirely justifiable indeed it is something that we have done in the Community with, for instance, classification societies. Thirdly and very obviously maximising co-operation on quality issues between all of the participants in the industries and services clearly has great utility and potential benefit. In all of our activities in the Quality Shipping Campaign I ve been conscious that, to advocate quality in this as in any other sphere, can be as easy and as superficial - as praising virtue or condemning sin. And since those who are most likely to hear the message are already the most quality-conscious, there might be a temptation to believe that all of the missionary work is being done amongst the converted. I hope that will not be the reaction. The Campaign, first of all, gives positive assurance to those who do invest money, expertise and time in good quality that they are acknowledged and valued. Second, it gives notice to those who are not seeking to gain or to maintain high standards that they are regarded to be targets, that sanctions will be brought against them, and that if they do not improve their performance their commercial existence will be in jeopardy. In short, they undermine and undercut others unfairly, and it is right that they should be punished fairly. 4

5 And third, by putting emphasis on the progress to be gained by combining a body of basic and necessary legal requirements with effective and developing self regulation, the Campaign is, I believe, realistic and pragmatic. Naturally, if higher quality is to be achieved everywhere, responsible governments and administrations are going to have to play their full part in identifying poor quality and acting to prevent and penalise it. But if market forces can be mobilised deliberately and consistently in pursuit of quality and they can it is that which will ensure that maritime activity is not just tough for the low quality company, but impossible. In everything that we do we must be guided by the purpose of ensuring that good quality pays and bad quality loses. That is the mission of this Campaign. I thank everyone here for their readiness to associate themselves and their organisations with it, and I look forward to the productive results which I know that you will ensure for this Conference. 5

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