Draft law amending the Maritime Safety Act (526 SE) – first reading
Session: 15th Riigikogu, 4th session, plenary sitting
Date: 2024-11-04 19:10
Participating Politicians:
Total Speeches: 32
Membership: 15
Agenda Duration: 23m
AI Summaries: 32/32 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
Agenda item 3 concerned the first reading of the draft Maritime Safety Act Amending Act 526. The draft aims to reduce port fees by 14% for all ships entering Estonian ports or port anchorages between now and 2025, with the purpose of ensuring competitiveness and promoting economic activity. This initiative stems from support measures implemented during the COVID era and subsequent changes in the external environment, such as the conflict in Ukraine and sanctions, which have impacted regional trade. The draft was submitted in collaboration with the maritime department of the Ministry of Economy and Climate, and 1.6 million euros are planned in the state budget, representing 14% of the intended port fee reduction. The Economic Affairs Committee unanimously decided to initiate the draft and made preparatory decisions regarding the leading committee and the agenda, taking into account that the proceedings should take place in conjunction with the draft state budget. During the political background discussion and debate, it was emphasized that maintaining the competitiveness of port services is crucial in the current situation and that neighboring countries’ fees must be considered. Additionally, a minor technical error in the draft text (paragraph 9512 versus 9511) was identified and corrected on the spot, and it was clarified that the 2025 discount will remain at 14%, not 15% as was the case in 2024. In conclusion, it was emphasized that the discount will help maintain the sector's competitiveness and provides a centralized framework for balancing considerable costs and revenues.
Decisions Made 5
Initiate the draft law amending the Maritime Safety Act by the Economy Committee – by consensus.
The Steering Committee’s representative is hereby appointed as the speaker; amendment to the previous decision: the representative is to be appointed as the coordinating representative presented by manager Jaak Aab – amended by consensus.
Proposal for the agenda: to include the draft on the plenary agenda for November 4, 2024 – by consensus.
First reading completed – by consensus.
The deadline for submitting amendment proposals is set at five business days; the vote result: 5 in favor, 2 against.
Most Active Speaker
The most active speaker is Jaak Aab (pid 3iK35z0_4VM), the chairman of the economics committee; political alignment: other (neutral/non-committal for everyone). He has spoken with multiple questions and answers and has led the course of the discussions to a greater extent than other participants.
Aseesimees Toomas Kivimägi
AI Summary
Agenda item no. 3 concerns the draft bill No. 526 to amend the Maritime Safety Act, initiated by the Economic Committee, for the first reading, and the rapporteur is Jaak Aab, chairman of the Riigikogu's Economic Committee.
AI Summary
Jaak Aab said that the Economic Committee will initiate a draft amendment to the Maritime Safety Act, under which in 2025 the navigation fee charged on all ships entering Estonian ports will be reduced by 14% to ensure the competitiveness of the shipping sector, and for the next year €1.6 million is planned to cover this subsidy within the state budget bill, which is being processed together.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi thanked and asked Arvo Aller to pose a question.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Arvo Aller noted that the law consists of only one paragraph and amendments are being considered.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Arvo Aller notes confusion in the 2024 portion of the text of the new paragraph 9512 ("Special provisions for calculating the water fee from January 1, 2025 to December 31, 2025"), where §9511 provides for a 15% reduction in 2024, but the text shows 14%, and he asks whether this is a typographical error and whether 2024 should be replaced by 2025.
AI Summary
Jaak Aab thanks you for your attentiveness and notes that there is a typographical error in the draft bill and it should be 2025, as is also shown in the heading of the paragraph above, and explains that 2024 had a 15% discount and next year it will be 14%, because the number of port visits is growing by about 2%, and for the same amount of money you get a discount that is 1 percentage point smaller.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Chairman Toomas Kivimägi invites Lauri Laats onto the stage.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats, as chair of the Economic Committee, asks how he would respond to tax increases if the maritime and logistics sector has not recovered from the post-COVID recovery, and the overall economic environment is in poor shape, while incentives continue.
AI Summary
Jaak Aab said that 2025 will have the same-sized subsidy as 2024, but its impact depends on whether ships reach our ports and on considering port and pilotage fees and the contracts that have been signed. And although the level of the water charge is competitive and differs compared to neighboring countries, the 14% subsidy does not reduce our competitiveness — it keeps us competitive with other nearby ports.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi asks Arvo Alleri to give a speech.
Arvo Aller
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Arvo Aller emphasizes that the good decisions made during the COVID-19 period should remain in force, recalls the decisions made during the coalition that brought economic growth, and states that this bill does not hamper the ports' competitiveness and asks whether the government will come with more similar good initiatives such as lowering excise taxes.
AI Summary
The Economic Committee has started the work of the Expert Council on Competitiveness, received recommendations from the council, and the government has partially taken them into account, the aim of which is to improve the competitiveness of entrepreneurship and the entire economy, and monitoring is planned, and during the spring session there will be another discussion of the implementation of these recommendations and the next steps.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi invites Lauri Laatsi.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats thanks the chair of the meeting and the chair of the Economic Committee, notes that the draft bill reduces ships' tonnage tax by 14% due to the recovery from COVID, and emphasizes that the overall downturn of the economy has hit many sectors, and asks how, in such a situation, exemptions from tax increases could be made and whether they are even necessary.
AI Summary
Jaak Aab said that the government must come to terms with budget problems, because the long-term deficit and the large debt burden, as well as the risk of a downgrade of the sovereign rating, increase risk margins and may harm competitiveness, and although in the short term the situation depends on taxes and their increase, in the long term these decisions must be made.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Chairman Toomas Kivimägi invited Rain Epler to speak.
Rain Epler
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Rain Epler noted that the state budget deficit and debt burden have grown rapidly in recent years, and that the coalition is increasing them even amid the rhetoric, and asked how deeds and words would fit together better.
Aseesimees Toomas Kivimägi
AI Summary
The deputy chairman, Toomas Kivimägi, confirmed that the clarification was entirely appropriate, and gave Mart Maastik the floor.
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Mart Maastik thanks the chairpersons and the commission, promises to be more concrete, notes that raising the alcohol excise tax must take into account previous experiences with border trade and the decline in the number of Finnish tourists, and perhaps not all excise taxes should be raised, and praises the current sensible draft, then asks for Lauri Laats's opinion.
AI Summary
Jaak Aab emphasizes that, in order to balance the state budget, taxes need to be raised and expenditures sensibly trimmed, because defense spending and the Ukraine crisis make it necessary to raise revenues, and if by 2028 interest costs are not covered, this could be about 500 million euros, which is not sustainable.
Aseesimees Toomas Kivimägi
AI Summary
This is a short request to invite Vadim Belobrovtsev to perform.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
He emphasizes that although the budget must be kept balanced and cuts must be made, this must not come at the expense of the poorest, and he asks whether the Social Democratic Party's principles remain and whether the party will not go back on its word again.
AI Summary
Jaak Aab stressed that the tax package compromise must involve various groups and include both a tax on profits and a consumption tax, because without their agreement decisions cannot be made and indecision could harm the economy's competitiveness.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman thanks and invites Mart Maastik to speak.
Mart Maastik
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Maastik emphasized that he will continue addressing the issue of maritime safety and the discussion of the alcohol tax, reminding that the previous increase in the alcohol tax did not bring more money into the state treasury, but reduced tourism and generated cross-border trade, and asked whether this topic would be reviewed within the framework of the new bill so as not to fall into the same trap.
AI Summary
Jaak Aab said that from the topic of maritime safety they had moved on to excise duties, and excise policy must be balanced, monitoring the developments of neighboring countries; in the Finance Ministry's assessment, the forthcoming excise increase should not be a big jump and cross-border trade should not grow sharply, although the original plan was to raise it by 5% per year and now it will be 10%.
Aseesimees Toomas Kivimägi
AI Summary
The speech expressed the hope that Rain Epler would end the round of questions.
Rain Epler
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Rain Epler asks how, for one sector, they arrived at the opposite approach — that entrepreneurs are having a hard time and relief should be provided — while the government handles other sectors in a broad, far-reaching way, and whether a mandatory lobbying register could provide an answer to this background.
AI Summary
Jaak Aab said that the Climate Ministry's proposal, on the basis of which 1.6 million remained in the budget and which would provide a 14% discount, is aimed at improving the competitiveness of port charges relative to ports in other countries, and discussions with entrepreneurs will continue, without lobbyists.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi announced that the negotiations were opened and then closed, the first reading of Draft Bill 526 was completed, and it was noted that the deadline for submitting amendments is November 11 at 17:15, and the proceedings on the third agenda item have been completed.