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The Minister of Transport, Communications and Works, Mr. Mr. Alexis Vafeades, the Transport Council with the participation of representatives from the Cyprus Chamber of Commerce and Industry (CCCI), the Federation of Employers and Industrialists (FEB), the Cyprus Scientific and Technical Chamber (CTEK), the University of Cyprus, the University of Technology and the Association of Transport Engineers, in the presence of the Deputy Minister of Shipping Ms. Marina Hadjimanoli, the Director General of the Deputy Ministry of Shipping, the Director General of the Ministry of Transport, Communications and Works, as well as executives and competent officials from the Ministry of Transport, Communications and Works, the Department of Environment, the Cyprus Chamber of Shipping, the Cyprus Shipbrokers' Association and the Cyprus Shipowners' Association.
At the end of the meeting, Mr. Vafeades made a statement. Essentially we have discussed how the cost to the consumer is increased by this tax, ahead of the participation of the Minister of Transport, Communications and Works in early April at a meeting of European Union Transport Ministers. At the same time there will be an additional session with the Transport Ministers of seven other countries that are substantially affected by this tax, particularly because of the close proximity to other ports, for example in North Africa. We are trying to create a common approach with the private sector, to formulate the arguments that we as a country should use in favour of improving this situation and reducing the cost to the consumer. The effort will continue, we will look at the issue in the European Union and we will try, in cooperation with other countries, to bring a better result."
Responding to a reporter's question, Mr. Vafeades said that the countries affected are the Southern European countries bordering the Mediterranean, namely Portugal, Spain, Italy, Greece, France, Malta and Croatia.
The Minister was asked if the Transport Council came up with a specific proposal at its meeting today, where he said: "The European Union has taken these initiatives on climate change management. But the rest of the world is not following at the same pace as the European Union. This creates a difference in the cost of any activity shared by European citizens, particularly those with ports near third countries. The European Union should start discussing the issue of compensatory measures and, in addition, explore how it can align itself with the policies of other organisations, such as the International Maritime Organisation (IMO), which determines what happens globally. So we need to have this discussion: how Europe relates to what is happening in the rest of the world, how Europe's priorities create an additional burden on its citizens and how we can help so that these costs are minimised."
Asked by a journalist why countries such as Germany and the Netherlands with large ports, Hamburg, Rotterdam, Amsterdam, are not affected by this new tax. Minister said that all countries are affected and added that "the ones that are most affected are those that are close to ports on other continents, which do not apply these regulations", as the cost of ships to move around the Mediterranean is less if they call at North African ports instead of European ports. "For us it became even worse," he said, "because we are the last destination, whereas previously we were the first destination coming out of Suez. The route has changed and that creates additional distance. And therefore additional taxation."
In response to a journalist's clarifying question that this new taxation actually hurts the competitiveness of Cypriot ports, Vafeades agreed and added: "And of the other countries of the European Union. This is essentially the argument," he continued, "that the cost of conducting business and cooperation with European ports is increasing, while the ports of all other countries keep their prices lower and thus their competitiveness is upgraded at the expense of our ports."
"This issue is not expected to affect the Cypriot registry," Vafeades concluded, as it is not affected by the route costs, which is the issue today.
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