More updates on the MSC chartered FOC ship RENA off New Zealand

http://www.stuff.co.nz/environment/5762082/Rena-riddled-with-problems

 

Rena 'riddled with problems'

The Maritime Union claims the Rena was riddled with problems, including issues with its charts, which could explain how it ended up getting stuck on a Tauranga reef.

The union released a statement today, claiming Maritime New Zealand found multiple deficiencies with the cargo vessel when it carried out an inspection on the ship in Bluff on September 28.

Prime Minister John Key is calling for answers on how the Liberian-flagged 235m vessel became stuck on the reef in the early hours of October 5.

The Maritime Union says it has information that the Rena had many deficiencies, including problems with its charts, "a possible clue as to how the vessel may have ended up running into the Astrolabe Reef at top speed".

It wants MNZ to release all of its reports on the ship and confirm whether it was aware of problems with the ship, including charts.

If MNZ was aware of the problems then it needed to explain why the Rena was allowed to sail on the New Zealand coast, the union's general secretary Joe Fleetwood said.

A spokesperson for MNZ said they would not release the most recent inspection report on Rena because it formed part of the ongoing investigation.

Fleetwood said the ship's grounding was a major shipping hazard, "with threats from oil and chemical spillage, the safe evacuation of crew and the possibility the vessel will break up".

"As a union our first concern is that the crew are safe and well and no one is endangered in the salvage operation. But we also want to quickly get answers that throw some light on why we are in this situation in the first place."

Fleetwood said that the union had a "source" who confirmed the Rena had multiple deficiencies.  They included issues with maintenance and equipment, propulsion main engine, covers and doors, lighting, stowage of lifeboats, emergency fire pump and the auxiliary engine.

Fleetwood said many of these deficiencies were similar to problems reported by the Australian Maritime Safety Authority during inspections of the Rena in Australia.

EPFO and the Indian Seafarer - a perspective (and opening gambit - service tax)

Some of us may recall the big scandal with the Seaman's Provident Fund, which had vanished as part of the even bigger Home Trade scam, some slight details of which are here:-

http://www.dnaindia.com/mumbai/report_sailors-get-back-their-lost-pf_1067316

This was, in value terms, amongst the top 10 scams - considering that the Bofors scam was about all of about 25-40 crores. Ofcourse, scam levels have gone up now, and just one small builder EPFO scam in Delhi (kashyaps) has a figure of about 170 crores to it.

As far as Indian seafarers working on Indian or foreign flag ships are concerned, the matter is now moving up rapidly, and exemption granted to shipping companies and shipmanagement companies as a special case under the Seaman's Provident Fund Act and Amendment is being looked into. In any case, it is not possible that a "special" act for Indian seafarers should provide lesser provident fund for Indian seafarers!!

More on that later, there are many angles to it, including the definition of the word "employer", but here's an article I wrote on EPFO issues which might be of interest. As Indian seafarers, you may wish to ask your employer, too, about this.

http://moneylife.in/article/your-epfo-savings-could-be-at-risk-unless-you-secure-some-important-aspects-yourself/18329.html

The bigger issue here is this - for many Indian seafarers working on Indian or even foreign flag ships on contractual basis, the issue of service tax to be levied by the contractor (seafarer) on the shipping company / shipmanager, is being looked at. So, in other words, if you are working on "contract" wages, then be aware that you may be liable to charge service tax. Please do check with your tax consultant here, too.

And the question to our friends at DGS, soon in the form of an RTI, will be this:- how is the Seaman's Provident Fund giving lower returns than the Employees Provident Fund Organisation (EPFO)? The whole concept of an "exempted" category under the various Acts and Rules underlines the simple fact that a "special" provident fund will provide better returns than the "normal' EPFO.

Big question, that. If you look at the answer carefully, then Indian seafarers, whether on Indian flag or foreign flag, are served far better by being covered under the EPFO - just like any other "international worker". More on that soon, too . . .