Page 41 - Monaco Economy 123

Gordon S. Blair: “A good flag registration system is a vector

of attractiveness”

In Monaco, the yachting sector represents more than €700 million in turnover, 252 companies
based in the Principality and 1,561 jobs on land. The port of Monaco is home to 37 of the 100
largest private yachts in the world. Edouard Mousny, a specialist in maritime law at Gordon S.
Blair and vice-president of the Monaco Yachting Cluster, explains how Monaco can develop a more
attractive flag registration system. by Milena Radoman

Do new Monaco residents often look for a yacht Maltese flag, the costs of social protection in the 1960s. It is certainly not simple: the maritime
and do they buy rather than charter? the Principality for equivalent coverage - it is sector is a complex and multidisciplinary subject
Yes, this is often the case. Our clients are important to specify this - are also prohibitive but I think it’s the right time: France and, more
often already yacht owners or in the process (in Malta, shipowners’ social charges are around generally, European authorities can only view very
of becoming one. Our firm is mainly involved in €45/week/person). That said, I do not think that favourably the development of a Monégasque
construction and acquisition operations, mostly yacht owners are expecting alignment in this fleet, heading in the direction of an onshorisation
for motoryachts from Italian and Northern area (Malta benefits from agreements between of the interests of yacht owners.
European shipyards from 30-35 metres to over member states of the European Union which
70 metres. We anticipate an increase in demand allow it to offer fairly comprehensive protection Does the Monégasque regime make it possible
for vessels under 24 metres, due to the various at a lower cost, including unemployment) but to escape European VAT, as it is said?
decrees issued in France last year limiting access an adjustment appears necessary. We should, I No. The situation in the Principality is neither
to anchorage for larger vessels. Some yacht think, draw inspiration from what has been done better nor worse in this respect than in the
owners will, therefore, acquire smaller vessels in this area by France with the RIF Pavilion. In European Union. The optimisation solutions that
to be able to continue to anchor in these waters. Monaco, sailors are treated like shore personnel. exist in the Principality are based on the same
However, in a transatlantic situation, we cannot body of rules as those in force in the Union,
Is current Monégasque law interesting for have the same working hours as in an office. If namely essentially leasing, the advantages of
the acquisition of yachts? a captain decides to disembark during a cruise, which depend in this respect on the presence
It depends on whether registration is considered it is imperative to find another without delay and in European waters of the vessel and the
interesting or not. The Monégasque flag is the without going through the traditional Monégasque mechanisms of report relating to the destination
opposite of a flag of convenience since it is hiring authorisations and so on. Fortunately, of the vessel and its commercial or private use.
absolutely necessary to have a connection with the Department of Maritime Affairs is doing a
Monaco to obtain it. It is, therefore, of no interest remarkable job in this regard and is helping yacht What are your customers’ requirements?
to a non-resident shipowner who is not eligible. On owners to circumvent the difficulties. As often is The spectrum of subjects dealt with is wide
the other hand, when it comes to residents, the the case in Monaco, the quality of relations with and ranges from acquisition and structuring
question arises, if only because we are in a world the administration and its accessibility (compared of ownership to the regime of crews. This is a
where substance is increasingly important and it is to what can happen elsewhere) are in themselves matter for which there is no ready-made solution.
paradoxical to demand from them a consolidation a factor of attractiveness. The fact remains that A yacht owner navigating along the coast in the
of their assets in the Principality and to set aside it is indisputably necessary to change the current region with three sailors will not have the same
an asset of a value as large as a yacht. This regime to make it more competitive and, above needs as the owner of an 80-metre yacht with
circumstance alone makes the Monégasque flag all, more adapted to the reality of the maritime a crew of more than 20 people on board sailing
registration interesting. Added to this is the fact world today, which is obviously no longer that of around the world.
that it is one of the only mixed flags, along with the
Marshall and Cayman Islands that allow a private
vessel to be chartered for three months a year. In
reality, the main issue with the Monégasque flag
and the brake on its development are the social
regulations in the Principality, which are not at
all adapted to work at sea.

How can the Monaco flag registration system
become more attractive?
Monaco operates with legal instruments dating
from the 1960s. However, the yachting sector
has evolved - even France has adapted. If
we compare with another flag such as the © paulvinten

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