Business asks to finalize the draft law on search and rescue service

15/ 09/ 2023

This week, at a meeting of the relevant Verkhovna Rada Committee on Transport, the draft law On Amendments to Certain Legislative Acts of Ukraine on Regulation of Activities in the Field of Life Protection and Search and Rescue at Sea No. 9283 was supported and recommended for the first reading. It is worth noting that the EBA business does not support this decision, and there are several reasons for this, which the community has already mentioned. Most importantly, there is a proposal to consolidate the existence and functioning of the Maritime Search and Rescue Service as a separate state unitary enterprise and to direct part of port dues to finance it. Companies do not consider it appropriate to do so without a preliminary assessment of the states resources for search and rescue. For example, search and rescue activities cannot be financed by port dues, as the use of port dues for purposes other than the maintenance of port infrastructure leads to its gradual decline and deterioration of the competitiveness of domestic ports. Moreover, given the difficult military situation, ports are likely to need funds for their own recovery and reconstruction. At the same time, sea search and rescue services must operate even in areas where there are no seaports but where sea shipping routes pass through or where small vessels that do not pay port fees sail. Accordingly, there is no logic in funding the Maritime Search and Rescue Service through port dues. In addition, the draft law proposes to assign the function of coordinating search and rescue at sea exclusively to state-owned enterprises, as well as to monopolize the communications sector. According to the business, these initiatives are not consistent with the International Convention on Maritime Search and Rescue and may reduce the effectiveness of search and rescue operations. Therefore, the European Business Association appeals to MPs not to adopt this draft law in its current version and to send it back for revision and take into account the views of business.

It is worth noting that the EBA business does not support this decision, and there are several reasons for this, which the community has already mentioned.

Most importantly, there is a proposal to consolidate the existence and functioning of the Maritime Search and Rescue Service as a separate state unitary enterprise and to direct part of port dues to finance it. Companies do not consider it appropriate to do so without a preliminary assessment of the state’s resources for search and rescue.

For example, search and rescue activities cannot be financed by port dues, as the use of port dues for purposes other than the maintenance of port infrastructure leads to its gradual decline and deterioration of the competitiveness of domestic ports. Moreover, given the difficult military situation, ports are likely to need funds for their own recovery and reconstruction.

At the same time, sea search and rescue services must operate even in areas where there are no seaports but where sea shipping routes pass through or where small vessels that do not pay port fees sail. Accordingly, there is no logic in funding the Maritime Search and Rescue Service through port dues.

In addition, the draft law proposes to assign the function of coordinating search and rescue at sea exclusively to state-owned enterprises, as well as to monopolize the communications sector. According to the business, these initiatives are not consistent with the International Convention on Maritime Search and Rescue and may reduce the effectiveness of search and rescue operations.

Therefore, the European Business Association appeals to MPs not to adopt this draft law in its current version and to send it back for revision and take into account the views of business.