Mr Dag Terje Andersen, Minister of Trade and industry

Challenges for The Maritime Industries

Maritime Industry Forum Oslo 2006, Plenary Session 5 - 6 October 2006

Excellencies,
Distinguished Guests,
Ladies and Gentlemen,

Welcome to the second day of the Maritime Industry Forum plenary session in Oslo.

I expect many of you attended the reception at Akershus Castle last night. I hope you enjoyed yourselves. Personally I found the short history lecture by Mr. Jarle Tollefsrud very interesting.

As is the case for Akershus Castle, the maritime industry also has very long traditions. During the last decades we have witnessed a lot of development in this sector.

Today our focus will be on the challenges facing the European Maritime Cluster. We will also discuss the future Maritime Policy of Europe.

The EU Commission has launched a Green Paper for an Integrated Maritime Policy in Europe. The approach in the Green Paper is to combine economic growth with effective protection of the environment. Norway welcomes this initiative.

Since Commissioner Mr. Joe Borg is the next speaker, I have chosen not to elaborate further on the contents of the Green Paper. Better to leave this to the expert…

Instead I would like to focus my speech on what I consider the main challenges for the maritime sector. These are:

• How can we stimulate innovation in the maritime industries?
• How can we secure enough skilled labour?
• And how can maritime industries contribute to enhancing the environment?

Innovation

Compared to other parts of the world, Europe is a high-cost region. Therefore, European companies need to specialize on value-added processes and activities.

A continuous focus on innovation is paramount for the European maritime industries to remain competitive. A good example I would like to mention is the X-Bow, by Ulstein.

This ships construction is revolutionary. Ulstein Design AS has introduced a new shape to the bow of the ship. Other innovations include diesel electric propulsion and a new safe anchor handling system. The innovations improve all the onboard components: safety, the environment, comfort, efficiency, fuel consumption and sea keeping qualities.

This is an example of innovation leading the maritime industry towards the future.

However, innovation also requires interaction.

This year, the Norwegian government introduced a programme called Norwegian Centres of Expertise. The aim is to increase value creation by triggering innovation and internationalization. And the clusters will receive financial support. The programme is meant to build and strengthen cooperation within selected clusters. This will also benefit European and international partners.

Six clusters have been appointed Norwegian Centres of Expertise so far. One of them is the maritime cluster at Møre. Several of the other five are also related to the maritime sector.

Employment

Innovation through successful research and development requires knowledge, know-how and creativity. Or in other words: highly competent and experienced personnel. A significant part of the success of the existing maritime cluster can be contributed to our seafarers.

Later today we will see examples of recruitment films made to attract new recruits to the maritime sector. These films can serve as an inspiration for governments, organisations and private companies.

In order to attract and retain skilled employees, we need to ensure good working conditions. Norway contributed actively in the process of drawing up a Maritime Labour Convention, which was adopted in February 2006. Norway welcomes this convention and I believe it can contribute to eliminating social dumping of seafarers.

Environment

The third challenge that I would like to highlight in front of this forum is the environment. We need to work together on an international level to enhance the safety- and environmental performance of the industry.

If we look around the room, almost everything we see has relied upon shipping in one way or another. Raw materials, component parts, finished goods, fuel, and food ingredients. It is all transported around the world in ships.

Shipping actually carries more than 90 per cent of world trade today. This is largely due to the fact that it is a cost-effective, clean, secure and safe mode of transport.

Despite this, the industry still faces several challenges with regard to the external environment. Air pollution and the destruction of resolute vessels are examples of issues that need to be addressed.

Luckily there are efforts being made in this field. The Norwegian government wishes to extend these efforts through next years budget, which is being presented later today. This government is serious about increasing innovation and entrepreneurial activities. We will therefore increase funding towards research and development.

There already exist good examples of environmentally focused innovation in the maritime sector. The world’s first LNG-driven vessels have been built in Norway. These ships run on Liquid Natural Gas. A further five new LNG-driven ferries, built in Norway, will operate in Norwegian fjords from 2007.

Another environmental challenge facing the shipping industry is ballast water. Especially after it was discovered that a species of jellyfish were destroying the anchovy fisheries in the Black sea.

The Norwegian company Ocean Saver has developed a process for removing these dangerous stowaways from the ballast water. The process of filtering the water kills the organisms. Then it calibrates the water with the local oxygen content before it is pumped out.

Through innovative thinking, a solution to the ballast water issue was found.

The development of commercial activities in the High North also requires special attention to the environment. We are therefore focusing on how maritime industries can contribute further towards the aim of maintaining a sustainable environment.

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Excellencies,
Ladies and Gentlemen,

The maritime industry is booming. Norwegian yards currently have orders worth around 4.8 billion euro. And they have contracts to deliver ships far into 2009.

As a result of the present Norwegian government net-wage scheme, there has been an evident increase in investments for new and modern ferry vessels. These new ship contracts have a positive extended effect throughout the maritime cluster. Both nationally and internationally.

We also heard from the speakers yesterday that we have a comprehensive maritime cluster in Norway. This cluster consists of ship owners, shipyards, ship equipment companies and service providers. The list could be extended. The maritime industry plays a crucial role for the Norwegian economy.

That is why the maritime sector is one of five priority areas. Next year the government will present a national maritime strategy.

In order for Norway to remain a large maritime nation also in the future, it is in my opinion paramount for Norway to further develop and maintain it’s shipping industry.

As mentioned, we have already improved and extended the net-wage scheme for seafarers. And we are making an assessment of our tonnage tax system. The strategy will form the basis for the Norwegian government’s future maritime efforts.

Maritime industry is a truly global industry. It is therefore essential to ensure that high standards are maintained through international rules and regulations.

We therefore strongly subscribe to the continued use of the International Maritime Organisation (IMO) for rulemaking. In order to make shipping an even safer and more environmentally sound mode of transport.

Norway participates actively in the OECD Working Party on shipbuilding. It is important to have such a forum in order to raise important maritime policy issues.

In 2005, the negotiations to establish normal competitive conditions in the shipbuilding industry paused. We hope that these negotiations can be reopened soon. An agreement like this will be a substantial contribution to the shipbuilding industry in all of Europe.

Through the EEA-agreement Norway takes part in the European internal market. This ensures Norwegian companies the same rights, but also the same obligations, as their counterparts in the European Union.

All maritime regulations apply in Norway. We also have a comprehensive cooperation with the institutions of the European Union in the maritime sector. Such as the European Maritime Safety Agency.

The EU has introduced various initiatives to increase the use of Short Sea Shipping and intermodal transport. We cooperate fully in these initiatives and share their objectives.

An example of this is Norway’s participation in the Marco Polo programme. The purpose of this program is to make a shift of transport mode from road to sea and railway.

I am pleased to hear that the Marco Polo programme has given priority to a European-wide implementation project. The project is called “Shortsea XML”. The project originated in Norway and will be coordinated by the Norwegian partner, NorStella.

It is a project for exchanging data between all parties in a door-to-door short sea logistic chain. Based on open international standards. The project will hopefully contribute to making intermodal transport more competitive.

By cooperating to ensure innovation, skilled personnel and environmentally friendly products and services, I believe the European maritime industry will maintain a significant position. I can assure you that Norway will play an active part in these efforts also in the years ahead.

Mr. Kjell Inge Røkke said yesterday; “ I strongly believe that competition is good. I believe in competition as long as the playing field is level”.

I agree with what Mr. Røkke said about competition. True competition requires a level playing field. The Norwegian government will contribute to solutions that foster a level playing field for our shipping industry on the global market.

Thank you for your attention!