LOCAL ship owners would not be able to sustain any further increase in fuel prices, says the Local Shipowners Association.
Association secretary Leo Smith said the requests to government from domestic ship owners to review the rate for carting domestic goods has not been entertained by all governments for the past 15 years.
Mr Smith, who is the owner of Consort Shipping, said the domestic ship operators who have been providing essential sea transport needs of the island communities have had to dig deep to stay afloat in the current business climate.
Mr Smith's comments come after the Prices and Incomes Board announced a further nine cents per litre rise in diesel cost.
"Some ship owners who have provided this essential services in the past 20-50 years, have been only being able to float because lending institutions have accepted mortgage on real estate, which current operators inherited from their parents," Mr Smith said.
"In my case the property I inherited from my father when he died 35 years ago is still mortgaged to the financial institution who is still willing to finance our company," Mr Smith said.
He said it was ridiculous that ship operators had to run on an income formula that was last calculated 15 years ago.
"Government has a national planning unit, and national transport unit I am just wondering do they really exist?" Mr Smith asked.
"Ten years ago 15 local domestic shipping services were operating, today only six companies survived to continue to provide essential domestic shipping services," he said.
"Yet the authorities require ship owners to modernise their fleet, on an income forecasted 15 years ago," he said.
Attempts to contact Interim Finance Minster Mahendra Chaudhry or interim Transport Minister Manu Korovulavula were unsuccessful yesterday.
