Economic Services News

Maltese Prime Minister Eddie Fenech Adami left last week for a two-day visit to Libya expected to focus on oil and shipping. Government sources said talks with Libyan leader Muammar Gaddafi were expected to focus on trade and the renewal of a contract for Libya to sell oil to Malta at favorable rates. A large delegation of Maltese businessmen and industrialists headed by Economic Services Minister Josef Bonnici will also be over in Libya. Bonnici said his visit marked the start of an active trade promotion program with Libya for the next two years. Malta's Export Trade Corporation also intends opening an office in Libya.

The Hong Kong government said on Thursday, it and the Netherlands had signed an agreement to exempt ship owners in the two places from paying double tax. "The agreement is beneficial to ship owners in Hong Kong and the Netherlands as it exempts owners of Hong Kong ships from paying tax levied on cargo loaded in the Netherlands, and vice versa," Secretary for Economic Services Sandra Lee said. Lee said Hong Kong already had similar agreements with the United States, mainland China and Britain and was discussing the issue with about 20 other countries, including Germany, Greece, Australia and Denmark. -(Reuters)

Hong Kong signed an agreement with Britain to avoid double taxation on shipping, exempting owners of Hong Kong ships from paying tax levied on cargo taken up in Britain, and vice versa. It was signed in the territory by Hong Kong Secretary for Economic Services Sandra Lee and British Consul-General James Hodge. Lee said at the signing ceremony that the pact strengthened Hong Kong's status as the international maritime center in Asia. "Hong Kong already has double taxation agreements on shipping with our major trading partners, such as the U.S. and mainland China and has also confirmed with the tax authorities of New Zealand and Korea that conditions for reciprocal tax exemption in our laws have been met," Lee said.

The International Bunker Industry Association (IBIA) pointed out the role that Asia will play in the future of the marine fuels industry. As announced at IBIA's recent Bunkering in Asia" conference held in Hong Kong, Asia's leading bunker hubs, include Singapore and Hong Kong, where annual bunker deliveries topped 18 metric tons and three metric tons respectively in 1998. The conference was opened by Stephen Ip, secretary for economic services, Hong Kong Special Administrative Region, who stressed Hong Kong's role as a replenishment port in Asia.

Malta Drydocks last week signed an agreement with the United States Navy enabling it to bid for ship repair work on U.S. vessels but the opposition Labor Party said the deal violated the island's neutrality. Economic Services Minister Josef Bonnici said the agreement did not violate the constitution since the dockyard would only bid for work on auxiliary vessels, such as tankers. Repairs would not be carried out in military emergencies. The agreement, he said, was part of the government's efforts to find more work for loss-making Malta Drydocks and would serve as an advertisement for the dockyard to win more commercial work from American shipowners.

Malta last Wednesday appointed the head of Malta Shipbuilding as chairman of Malta Drydocks, pointing to closer cooperation between the two loss-making firms. The Department of Information said former banker John Cassar White, chairman of Malta Shipbuilding for almost two years, would also head Malta Drydocks from February. He will take over from Noel Zarb Adami. The new Malta Drydocks board will include former central bank governor Emanuel Ellul, former Labor minister Joe Micallef Stafrace and Anglu Fenech, former general secretary of the General Workers Union. Workers will elect one director to the board, instead of four previously.