Cyprus President Backs Shipping as "Crucial"

Cyprus President Nicos Anastasiades expresed full support for the country's shipping industry in an address to members of the Cyprus Shipping Chamber at their 24th Annual General Meeting in Limassol last week.

Anastasiades praised the nation's flag and status as a commercial centre for shipping, an industry he identified as "one of the main pillars of the development of the Cyprus economy" and a "crucial part of the 'spinal column'" upon which the country will rebuild. He called the appointment of an Undersecretary of Shipping "a must."

The full text of Anastasiades' speech is as follows:

It is with particular pleasure that I am addressing the 24th Annual General Meeting of the Cyprus Shipping Chamber.

I wish to express the Stateʼs appreciation to all of you here, for placing and for continuing your trust in Cyprus and our Flag through all these years, especially now amidst these difficult times for Cyprus. With my presence today, I express the importance that the Government places on shipping, as one of the main pillars of the development of the Cyprus economy, and I wish to assure you that the cooperation which existed until today between the Government and the private sector with regard to shipping matters not only will continue, but it will further be enhanced.

The Cyprus Shipping Chamber should feel proud for, since its establishment almost a quarter of a century ago, it has been transformed into a very important professional organisation with direct and active participation in the shipping affairs of Cyprus. It has gained the reputation as a reliable interlocutor and the closest cooperator of the Government on issues concerning shipping, thereby helping Cyprus to improve its infrastructure, its policies and procedures so as to meet the modern demands of international shipping. The aim of this Government is to work even closer with the Shipping Chamber in order for Cyprus not only to preserve its prominent position in world shipping, but also to improve and further develop it.

Cyprus is today a fully-fledged maritime centre, combining both a Sovereign Flag and a resident shipping industry which is renowned for its high quality services and standards of safety. Today, the Cyprus Registry is classified as the 10th largest merchant fleet globally and the 3rd largest fleet in the European Union. The Cyprus Registry is continuously upgrading its services in order to offer a high standard of support to its flag users and maintain its reputation as a “Flag of Progress and Quality.” Cyprus, and more particularly Limassol, is considered to be the largest third party shipmanagement centre in the European Union and one of the largest in the world.

Without a doubt, shipping is an invaluable asset for Cyprus with significant political, economic and social advantages. Cyprus has established itself as a quality registry and, with an effective implementation of the internationally applicable safety, security and environmental protection standards, it has built its reputation as a respectful maritime flag and as a base for international shipping operations. Shipping is a sector with very big challenges and opportunities which the Cyprus Government, together with competent private organisations, such as the Cyprus Shipping Chamber, succeeded to face up to and exploit with foresight, proper planning and hard work, thereby producing positive results.

With the recent unprecedented financial developments in Cyprus, the shipping sector is invited to play an even more leading role as it now constitutes a crucial part of the “spinal column” upon which the Cyprus economy will depend in its road to recovery. Foresight, proper planning and hard work are, therefore, virtues which are now indispensable in our mission to preserve Cyprusʼ leading edge. For this precise reason the Government is determined to introduce those mechanisms necessary to protect this important sector as well as reinforce it further.

Under these circumstances, the creation of an Under-Secretary for Shipping position is a must. I have committed myself to create such a position during my election campaign, and this commitment has also been included in my Government programme. The relevant Bill for the creation of this position was submitted in Parliament within the first week of the Government taking office but, due to the unprecedented political pressure that we came under during the intensive negotiations we had to go through with the Troika since 15 March, we have not yet been able to follow this matter through.

With the Loan Agreement now concluded though, we are ready and willing to proceed very speedily with the relevant Parliamentary process in order for the Bill to be approved within the next coming weeks. As such and in their presence here today, I call upon all political parties to support this pioneering and very necessary institutional change. We now come to realise that, under these extreme circumstances, merchant shipping is perhaps the only sector in Cyprus that operates on a global scale and whose size and international importance go far beyond the size of Cyprus as a country. This on its own is a perfectly good reason advocating for the creation of this position.

In addition, the presence of many foreign investments in Cyprus creates conditions of increased security. It is, therefore, our firm belief that shipping, as a direct local and foreign investment in Cyprus, must be safeguarded and promoted even more. Within this framework, I am particularly pleased to confirm that irrespective of the temptations of the Troika, the overall shipping operational and taxation infrastructure in Cyprus has not been affected and remains intact.

Perhaps this is just an example of the strength of the Shipping Taxation System upon which we must build the future of Cyprus shipping. This is now a great opportunity to advertise our strengths in order to counterbalance our weaknesses, and the Government is ready to initiate or support any such actions. On this matter, we publicly thank the Chamber for launching a “Positive Campaign” in Cyprus and abroad in an effort to promote Cyprus as a reliable maritime centre with a competitive and EU approved Shipping Taxation System which we shall promote even further.

Thirdly, Cyprus shipping is still faced with the trade prohibitions imposed by Turkey on Cyprus ships calling at Turkish ports. I commit to you therefore, that the efforts made by the Cyprus Government to end this illegality against our country and EU shipping at large will be intensified and continue until these illegal restrictions are lifted the soonest.

Dear friends,

Your Annual General Meeting is today called upon to evaluate the activities and contribution of your Chamber to the Cyprus shipping industry which constitutes one of the main sectors of the Cyprus economy. Cyprus has all the experience and potential, in terms of both material and human resources, not only to continue to offer high quality shipping services, but also to raise its position even higher as a shipping centre of exceptional importance, with a fully developed infrastructure.

Whilst expressing my sincere congratulations to the Cyprus Shipping Chamber for its impressive activities all these past years, we pledge to you today that our primary target as Government is to ensure that financial stability returns to Cyprus, the temporary banking restrictions are lifted and appropriate financial incentives are offered in order to revitalise the economy the soonest.

The Cyprus Shipping Chamber shared their press release from the event with us along with the above photo of Anastasiades.