Greek shipowners’ leader John Lyras believes his country needs to throw off its structural rigidities if it is to avoid the danger of ‘dehellenisation’ of the country’s most important industry.
John Lyras, president of the Union of Greek Shipowners (UGS), considers that his country is at a crossroads. Lyras, who heads the Paralos Maritime Ship Operating company, says, Shipping is undergoing a period of structural change. Greek shipowners have contracted more new tonnage than ever before, and are aiming for quality ships. The government, too, is making commendable efforts to strengthen our shipping industry, but there are still certain issues to be addressed if Greece is to protect its maritime interests.
Greece, one of the worlds most important shipowning nations, has long struggled with the cost of sailing under the Greek flag and the shortage of Greek officers. The main reason for this, in the opinion of some, is the lack of government interest and involvement in the Greek shipping industry.
At 50 Lyras has long been a feisty figure on the Greek shipping scene. Over the years, he has become a dogged advocate of structural change and he never tires of campaigning for measures to protect Greek shipowning interests. He leaves no doubt that the promotion of further change is central to his agenda.
Greece has the most dynamic entrepreneurial spirit in Europe, but it suffers from certain structural rigidities that weigh down on shipowners, Lyras says. He admits that the government has taken positive steps of late, and refers to its recent proposal to cut tonnage tax to match the flag cost elsewhere in Europe.
National priority
The governments shipping policy is in line with the owners interests for the first time in many years, but it could be ineffectual if implemented in a piecemeal manner, he says, and strongly urges the government to treat the countrys shipping industry as a matter of national priority. The government, in line with EU initiatives, is pushing for greater competitiveness and we want to go along with that, he says.
One of his concerns relates to the cost of manning Greek-flagged ships, which has long been the main area of dispute between owners and the government. Lyras points to the continuous shrinkage of the home register and argues that the trend would be reversed if Greek-flagged shipowners were allowed to hire more foreign hands in place of expensive Greeks.
Today, the Greek flag is not competitive vis-à-vis other European flags, such as those of the Netherlands, Britain, Norway, Denmark and Germany. At the same time, numerous flags of convenience are becoming increasingly reputable, organised and competitive. Lyras also fears that the accession of Cyprus and Malta to the European Union will be detrimental to Greek shipping, and may give rise to a mass flagging out to their registers.
Once Cyprus and Malta join the EU in the 2004 enlargement, the status of their ship registers would be upgraded, thus making the large number of Greek owners that were using them unwilling to return to the home flag. Such a development would increase the extroversion of our shipping, and possibly lead to a high number of new ships flagging out to Cyprus, he warns.
Maritime training
Lyras is also pushing the government to address recruitment and education issues. The flag issue has had multiple side effects, one of those being that you reduce the number of ships that can train new officers and crew. Also, todays system disparages potential seafarers and we have a big problem now in terms of recruitment and attracting young people to our navy colleges. We would like to see maritime training become a formal part of the Greek education system, with realistic incentives such as a reduction in the length of military service for maritime academy graduates.
Commenting on the positive economic performance by Greece over the past few years and its entry to the Eurozone, Lyras says, This is something most Greeks applaud, especially national shipowners who anticipate they will benefit from lower transaction and exchange costs, cheaper domestic credit and better trading in a unified market.
Given the fact that the Greeks control the largest fleet in the world, one should draw the conclusion that we can look to the future with confidence. Regrettably, though, the government needs to act further if we are not to see our country stripped of its maritime know-how and power.
The biggest challenge for Greece as a maritime nation, Lyras concludes, will be to avoid the danger of dehellenisation of the countrys most important industry. We have the experience and expertise to maintain our world-leading role, but we need the support of a unified, long-term maritime policy.
