NETHERLANDS REPORT Following five previous consecutive years of growth, the year 2001 saw a further increase in the number of seagoing ships registered in the Netherlands. On 1 January 2002, 783 ships were entered in the Netherlands register. This means that in 2001 a growth of 28 ships took place to reach a total tonnage of 5,0 million GT, compared with 4,6 million on 1 January 2001. These figures comprise ships in the merchant fleet, the seagoing tug fleet and offshore services. Current commercial circumstances for the Dutch shipping industry are not favourable. The difficult circumstances in almost all market segments will require a great deal of effort to survive the next few years without suffering too much damage. Fortunately, the Dutch fleet that has been brought into service over the past few years is a modern, well-equipped one and a good match for the international competition. A competitive investment strategy to maintain this position in the future is of the utmost importance. The fiscal climate in the Netherlands plays a crucial role here. Over the last few years the KVNR has seen the advantages of the Dutch system partly disappear as other countries have adopted a system of fiscal incentives similar to the Netherlands. Here in the Netherlands we have had to relinquish our lead to our competitors. In order to maintain future growth we urgently need changes in the regulations. The EU aid policy for shipping, which is based on fiscal stimulation, offers sufficient room to manoeuvre. It is therefore vital that the government fulfils its promises in this area. The shortage of qualified officers and masters is one of the most important problems facing the Dutch shipping companies. This shortage is due to the growth in the fleet under the Dutch flag as well as demographic developments. Important aspects of policy in this area are to increase entry to nautical colleges and to reduce the number of qualified personnel leaving the profession. Despite the priority given to the employment of Dutch officers and masters, foreign qualified seafarers will have to be called upon. The proposed liberalisation of the regulations for sailing Dutch ships with foreign masters may prevent the registration of ships under other flags as a result of the shortage of Dutch or EU masters. This will benefit the career opportunities of Dutch maritime officers. The essentials for employment and educational policies have been specified in a covenant set up on 10 October 2001 between the trade organisations for dredging, fishing and shipping, the Minister for Transport, Public Works and Water Management and the Minister for Education, Culture and Science. These policies aim to increase the supply of maritime officers, to create a career path for employees and to reduce the numbers of seafarers leaving the profession. In addition, these policies promote the retention of maritime knowledge in the Netherlands and the stimulation of students to enter nautical education as well as the revitalisation of this form of education. The environment, safety and quality form the nucleus of Dutch shipowners' policies. A culture of quality is evolving in the Dutch shipping sector. This is obvious from the top position which the Dutch shipping sector enjoys in the list of ships least frequently detained by Port State Control and in the high level of appreciation shown for Dutch shipping during research into environmental, safety and social aspects of sailing under various flags.