79

largely dependent on new registrations.

In a period of

consolidation or stability revenue freezes and

registration fees would have to be pitched high to

recover total costs.

10.12.

More stability could be introduced to avoid

peaks and troughs in revenue by the introduction of a

basic annual charge on all ships, with survey fees etc.

being structured to recoup the balance.

There

10.13. Some commentators suggested the introduction

of annual 'tonnage' charge. This has attractions and

appears on its face value, as an equitable means of

financing the system. Individual fees for survey etc.

could be undertaken on a marginal costing system.

may be merit in this approach in order to make the

register self-financing (as opposed to being a revenue

earner). However it would have to be borne in mind that

annual charges are sometimes associated with Flags of Convenience, though there is nothing in the practice as such to offend the requirements of the UN Conference or

of good Government, applying the principle that the user of a service should pay for the cost of that service.

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