While the economy of the country seems to be in very poor health, Prithviraj Putten, minister of Merchant navy, Rodrigues and islands, thinks that the maritime sector could give it a major boost. The Merchant Shipping Bill 2004 is expected to “bring more business here. But the most important thing is that the business aspect must be adequately counter-balanced by the regulatory aspects, the implementation and enforcement of safety standards and pollution prevention measures,” the author of the bill, Professor Proshanto Mukerjee, explains.

This international maritime law specialist, as consultant for the International Maritime Organisation, is helping Mauritius strengthen its legal framework. He has already drafted laws on shipping in some 25 jurisdictions around the world. According to the minister, “the new legislation aims at creating a modern and strong international legal framework so that merchant shipping can progress”.

The new legislation proposes more severe sanctions in case of breaches of the law. For instance, fines will increase from Rs 5,000 to Rs 50,000 for a certain number of crimes. Fines or imprisonment have also been added for offences that were not sanctioned so far. The Mauritian authorities will thus have more powers to check ships arriving in Port-Louis.

Although the aim is for Mauritius to become “one of the main crossroads of this part of the world”, there is absolutely no question of encouraging frauds or scandals. The minister is planning to persuade “foreign shipping companies as well as ship owners, particularly wealthy yacht owners, to register under the Mauritian flag.” This should allow the development of marine insurance and ship brokerage, for instance.

Professor Mukherjee is expected to counterbalance the business Mauritius really needs in these tough times with security around these new measures. As a result, he is working on confidentiality and safety measures for ships and their owners, not to mention legal sanctions. Moreover, some private companies believe that the sanctions proposed are too high and should be reviewed before the law is voted and implemented.

At the moment, the economy is in a fix. The prime minister, Paul Bérenger, recently declared that the economy is in a “state of emergency.” Sugar is threatened by both the Fischler proposal of a cut in export prices and the World Trade Organisation ruling, which eliminates preferential agreements. Likewise, the textile industry is going through tough times with major lay-offs occurring in three different companies. The end of the Multi Fibre Agreement at the beginning of next year is far from promising for the sector. The tourist sector is not in such bad shape as the others, but there is no room for rejoicing. The government will have to take the necessary steps to maintain the growth there.

Shift potential

As the situation – at least for sugar and textiles – is not going to get better in the short term, Prithviraj Putten sees in merchant shipping the only way out. “We must diversify our sources of revenue. We must start to think out of the box and see what the sea can offer. We must not forget that 90% of the international trade passes through the sea.”

And the minister goes even further; the shipping sector should, he says, take advantage of the problems in other fields to make its mark as a pillar of the economy. Likewise, he thinks that safety problems elsewhere, particularly the fear of terrorist attacks, should bring trade and tourists to our shores.

“We have the potential to promote the Mauritian port while world trade tends to take alternative routes because of safety problems in the Middle East and other regions.” As for tourists, the reputation of Mauritius as a “peaceful and democratic country, with a positive economic balance” should attract wealthy yacht owners. Here again, there is a “shift potential” because of eventual safety problems in other destinations.

All these measures are promising for the Mauritian economy. This at least allows hope for the future, which has been quite difficult so far with the alarmist speeches of the authorities. It now has to take shape. “The new law will be voted in January,” the minister says.