The Triton 200407

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July 2004 Vol. 1, No. 4

Exclusively charter boats now VAT free By Lucy Chabot Reed

The 139-foot S/Y Rebecca was scheduled to complete a refit in Newport in late June. Capt. Paul Fitzgerald, whose crew spent a year planning the project, said preparation and organization were key. Read more about it beginning on page 15. PHOTO COURTESY OF CAPT. PAUL FITZGERALD

Charter yachts in French waters that are registered as commercial vessels and are used exclusively in charter can legally be exempt from the VAT. That is according to Thierry Voisin, owner of the brokerage Partnership in Nice, France, who has spent the past year negotiating with For more French finance authorities to arrive at coverage of some exclusions from the expensive SEAS2004, tax for yachts. In one of the best attended sessions see pages of SEAS2004, an international trade 6, 9, 12. show and conference held in May in Nice, Voisin announced that he and another industry leader had gotten French officials to exempt two classes of yachts from the value-added tax: commercial yachts engaged exclusively in charter, and private, nonEuropean Union-flagged yachts with a non-European owner. The value-added tax, or VAT, is a general tax on the value of goods and services across Europe and is charged as a

See VAT, page 8

U.S. captains rely on word-of-mouth to land jobs At least three Triton Bridge captains lost their jobs in June. Two had longevity; one didn’t. One has 20 years as a captain; another only a few. Earlier this year, still another Bridge captain was fired from his post after four years. Regardless of the reasons, these captains and many others face the same From the Bridge task – finding their Lucy Chabot Reed next job. So we posed that question to our Triton Bridge on two continents in June. Two captains who spend most of their time in the Mediterranean shared their thoughts on this topic in Antibes, France. Five others shared their thoughts back home in Fort Lauderdale.

Join us for more on salvage laws in the Triton Connection, page 10

As always, the captains are not identified in this story to encourage frank and open discussion. Attendees are identified as a group on page 7. The difference of opinions on this topic was striking, with Europe-based captains turning to yacht management companies for jobs, and America-based captains finding word-of-mouth the best job-seeking tool. “When I’m out of a job, I call everyone I know, other captains, crew, the agencies,” one captain said. But that sort of approach struck one captain as doing more harm to the industry than good. “Having to hawk for work is the most unprofessional way to go,” said one who preferred the services of a yacht management company. “We have to get out of the 40-foot-sailboat

mentality. This industry has to have a private-jet mentality. The jet is on the runway with engines running, so that when the owner steps aboard, you close the door and you’re ready to go. “The bulk of the people we work for, that’s what they expect,” he said. “[On their yacht,] the engines should be running and there’s just one stern line double tied, so that when the owner gets there, we’re ready to go. That’s the head space crew needs to be in.” On both continents, talk turned here into a discussion of the level of professionalism for which yacht owners are prepared to pay. “We’re in an industry where a crew member has to resign his commission to go to school to get his certifications, and then go back and find a job,” one captain said. “No other industry does

See the future at Visions East, page 15

that.” “That’s what I did,” a younger captain said. “I took two winters off of six months each, so I was 12 months out of work and [thousands] out of my pocket to get my license.” “If owners were told that his captain has qualifications that he needs to keep current, they wouldn’t even blink about giving him the time to do it and paying his expenses,” the captain said. “All their employees do it. It’s part of the cost of doing business. But they won’t do it unless they have to. “Owners are being sold an incorrect dream. They aren’t told they need to make this available to their crew, and brokers are a lot at fault for that. “That’s where management See THE BRIDGE, page 7


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