Taking into account the activity, which one can envy, we should consider all the pros and cons without any omissions while considering the draft laws on inland water transport.
One has to check whether the authors of the draft laws have sincerely and comprehensively informed members of the Parliament and society about the benefits of “river draft laws” 2475а, 2476а, 2712, and 2713.
We think not.
Being the most modern shipping company in Ukraine with dynamic development and a hundred per cent Ukrainian capital, the company is like no other one is trying to make the country and people’s deputies, including deputies of Mykolaiv region, to take steps in order to create appropriate conditions for development of inland water (river) transport in Ukraine. We have repeatedly argued that adoption of the given draft laws will not only smash the national transport system of Ukraine but also the domestic shipbuilding industry and economy of Ukraine.
The union of domestic enterprises in shipbuilding industry – Association of Shipbuilders of Ukraine Ukrsudprom – put stress on it.
Realizing that it is impossible to keep the truth back and deny obvious facts, the most active author of the draft laws, using his usual methods of manipulation and populism, is trying to interpret our reasonable comments as an alleged NIBULON’s desire to save the delusive monopoly and avoid competitiveness of other (foreign) companies.
In fact, these “loud” statements are groundless. First of all, our company mostly transports cargo and it’s its shipper. It doesn’t actively work in the market of commercial river transportation, which is being performed for payment by virtue of the shipping contract. So, arguments about the alleged fear of competition are groundless. Secondly, there haven’t been decisions of the only competent control body – the Antimonopoly Committee of Ukraine – in terms of NIBULON’s monopoly (dominance) in any commodities market, including transportation of cargoes by inland waterways of Ukraine.
Such unprofessional statements of some members of the Parliament testify about danger to the country. One can hardly write qualitative and professional draft laws without knowing the legislation of Ukraine. It is better to learn the legislation instead of labeling.
The people’s deputies keep quiet about the following.
In accordance with the resolution of the Committee on Corruption Prevention and Counteraction of the Verkhovna Rada of Ukraine on results of anti-corruption expertise of the draft law, namely the draft law “On inland water transport” (No. 2475 a), there were found corruption factors. The Committee came to conclusion that the draft act doesn’t meet the requirements of the anti-corruption legislation.
The fact is that in accordance with the current legislation of Ukraine, use of inland waterways by inland water transport is not free of charge as shipowners pay mandatory payments to the State budget for using inland waterways: indirectly (as part of oil price) – excise tax, directly – rental payment for special water use for water transport needs.
Given the content of the draft Law of Ukraine “On inland water transport”, the river due has a character of a mandatory payment (tax) for the use of public waterways and it is contrary to the Tax Code of Ukraine.
According to paragraph 9.3 of Article 9 and paragraph 10.5 of Article 10 of the Tax Code of Ukraine, remittance of taxes and duties to budgets shall be carried out in accordance with the Budget Code of Ukraine.
Contrary to the requirements of the Tax Code of Ukraine, the draft law provides for the river due collection to the state enterprise and not to the budget, ignoring the requirements of the Budget Code of Ukraine.
Thus, the river due will be introduced as a hidden tax both for cargo and passenger transportation by rivers. It will be paid by shipper and, unlike other taxes and dues stipulated by the Tax Code of Ukraine, will be directed not to state or local budgets but to accounts of the newly created entity – River Waterways Authority. It will be the state enterprise nominally, but in reality it will be controlled by a well-known Ukrainian financial and industrial group with Russian capital.
It is surprising that despite the fact that we have repeatedly emphasized the numerous drawbacks of the given draft laws, neither committees nor ministries and agencies take care of the state interests. They don’t take any measures to prevent one from stealing the state money, as it happens through the Ukrainian Sea Ports Authority.
We should remind you that it is planned to create River Waterways Authority as an analogue of the Ukrainian Sea Ports Authority, which has discredited itself. It was created to concentrate large financial flows and to use them not for development of the state but for development of well-known financial and industrial groups and oligarchic groups. To legitimize this scheme, one has introduced the package of draft laws 2475а, 2476а, 2712, and 2713 to the Verkhovna Rada.
One cannot but pay attention to policy of double standards of the draft laws authors. Thus, former deputy director of the Department of Maritime and River Transport of the Ministry of Infrastructure of Ukraine, former deputy head of the Ukrainian Sea Ports Authority, a people’s deputy of Ukraine Borys Kozyr, who was involved in development of the Ukrainian Sea Ports Authority and promoted its efficient operation, is criticizing its operation in his statements and admits inefficiency, presence of corruption factor in its work.
It doesn’t prevent the respected co-author from lobbying for creation of the analogue of the Ukrainian Sea Ports Authority – River Waterways Authority.
Although the Committee on Corruption Prevention and Counteraction of the Verkhovna Rada of Ukraine in its resolution considers that it’s necessary to exclude the river due from the list of inland (river) waterways maintenance funding sources and to remove the relevant legal norms which regulate river due collection and use, some people’s deputies ignore them. They struggle with corruption and defend the state interests and interests of their voters on paper.
The authors of “the river reform” are keeping back the fact that they failed to “negotiate” and to convince the business in benefits of the draft laws.
In particular, the largest business associations (European Business Association, American Chamber of Commerce in Ukraine, Ukrsudprom, Ukrainian Grain Association, Council of Entrepreneurs under the Cabinet of Ministers of Ukraine, etc.) supported the conclusions of the anti-corruption expertise and opposed the adoption of the draft Law of Ukraine “On inland water transport” in current version, namely the introduction of the river due.
The situation is as follows. The specialists of US Army Corps of Engineers arrived, investigated condition of the river infrastructure, and proved that it is necessary to perform dredging on the Dnipro River. International financial institutions examine the situation and make proposals to implement the project. At the same time, the people’s deputies are trying to adopt the package of “river” dues quickly and at any price.
Once again we appeal to the authors of the draft laws 2475а, 2476а, 2712, and 2713 with a request to examine the conclusions made by international specialists, to communicate with Ukrainian specialists who have recently come back from the Netherlands (the visit was organized by the Embassy of the Netherlands in Ukraine) and who have studied the experience in using inland waterways of the Netherlands. In particular the Dutch specialists have demonstrated to our officials that their unprofessional approach blocks business development in Ukraine. There is no river due in the Netherlands. The use of rivers and canals is free in the Netherlands. There is also no payment for lock passing. One of the objectives of the Ministry of Infrastructure and Environment of the Netherlands is to create the infrastructure for business development. One should create conditions, guarantee groundwork – the infrastructure.
The international community proves once again the inadmissibility of these things on inland waterways of Ukraine, but the politicians stand their ground.
One should also pay attention to the desire of “reformers” to “open inland waterways of Ukraine for vessels under foreign flags”. They say that at present Ukrainian rivers are “closed” to foreign carriers, but we adopt these draft laws and cargo transportation by rivers will instantly increase to 25 million tons per year.
This is an undeniable invention. Professionals in river industry know that in reality vessels under flags of states with which Ukraine has not signed international agreements on navigation on inland waterways can call at river ports of Ukraine, having received a temporary permit beforehand.
The appropriate procedure for obtaining such permits is approved by Order of the Ministry of Infrastructure dated 09.11.2012 No. 665.
This procedure is extremely simple and transparent. Moreover, issuing such a permit is completely free; the state does not charge a penny for foreign shipping companies.
It is enough if a foreign shipowner (or vessel´s captain) appeals to Ukrtransbezpeka, no later than ten days before vessel arrival to the river port of Ukraine, with a half page request which should contain the following information: name of the vessel which performs transportation; name / surname, first name and patronymic of the shipowner; name of the country whose flag the vessel is flying; amount and type of cargo; name of port of loading and port of discharge; estimated date of arrival to the river port of Ukraine and confirmation of the river port commitment to accept the ship. If a foreign vessel plans to carry export goods, the State Service of Ukraine for Transportation Safety posts an announcement on its official website on the day of request registration containing information about the transportation of export cargoes. In case if a Ukrainian carrier intends to perform such transportation, there are negotiations which result in decision of Ukrtransbezpeka on grant or refusal to give permission to foreign vessel. If Ukrainian carriers are not interested in such transportation, the foreign vessel receives a permission of Ukrtransbezpeka freely. Such an approach is logical because the country, first of all, must defend the interests of national business. If the foreign shipowner plans to transport goods solely by inland waterways (within the customs territory of Ukraine), the permission is issued automatically.
There are only two reasons for refusal to issue a permit: the untimely request to receive it; lack of information required for permit registration. In accordance with the legislation, the given list of grounds for refusal to issue permits is exhaustive.
The request is a formal message about intention to call at a Ukrainian river port, and it does not bother a foreign carrier anyway.
Thus, the state provides free opportunity to foreign shipping companies to work on inland waterways of Ukraine, providing only formal accounting of such transportation.
Whereas the work of foreign companies is controlled by the state, foreign shipowners are required to provide planned character of transportation. Ukraine doesn’t set any other obstacles, barriers or restrictions to foreign carriers.
That is, if there are cargoes to be transported or exported, learn the laws of Ukraine and charter vessels legally, export your goods, since practically any foreign vessel has an opportunity to receive a permit for call at river ports of Ukraine for free and in a short period of time.
However, the draft laws No. 2475a, 2712, and 2713 provide for to create background for practically uncontrolled use of Ukrainian rivers by foreign vessels, without taking into account opportunities of Ukrainian carriers, by introducing the principle “call at anybody”.
These are elements of betrayal of national interests. It isn’t a secret that today’s oligarchs or companies with foreign capital have funds and can build vessels and get foreign fleet involved to carry their cargoes.
Why do people’s deputies need to reinvent the wheel?
Can the authors of these draft laws in cooperation with a well-known financial and industrial group with Russian capital be the owners of foreign shipping companies registered in offshore zone, where hundreds of Ukrainian vessels moved in the 90th ? Then everything is clear.