AN ANTI-BUSINESS lobby, called the Frigast Committee, seeks to abolish the Danish International Ship Register scheme, under which seafarers do not pay income tax, reports Singapore's Splash 247.

The idea is opposed by the country's shipowners' organisation, Danish Shipping. The Frigast Committee has included the registry scheme in its recommendations for changes in Denmark's more than 200 current business-friendly schemes.

The plan aims to increase structural employment by 4,000 full-time workers and releasing about DKK2 billion (US$290 million) a year.

The group led by businessman Christian Frigast it should be expected that the scrapping of the ship registry would result in fewer Danish seafarers and fewer ships flying the Danish flag.

The EU-approved scheme has existed since 1988, and historically, there has been broad political support for Danish shipping and a majority for the framework conditions that make it possible for Danish shipping companies to compete in the market.

Denmark today has the world's seventh-largest maritime industry and more than 100,000 people are employed in the maritime cluster, according to Danish Shipping.

Shipowners have warned that abolition of the scheme would have major negative consequences for the sector, describing the proposal as sad and worrying.

It pointed out several ramifications, including the Danish flag not being competitive compared to other countries, such as Norway, Germany and Singapore as well as fewer Danish seafarers and other skilled employees in the sector.

"It will be a disaster for Danish shipping to abolish the scheme, said Danish Shipping CEO Anne Steffensen.

"Abolition of the scheme will lead to significant and massive flagging of Danish-flagged ships to neighboring countries and other maritime nations around the world.

"Positions ashore must follow and in time we will also lose the Danish seafarers and important maritime skills. It is a highly unsafe experiment that one should stay away from. I cannot warn against that strongly enough," she said.