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Boats continue to sell well

Marine industry continues on target for first half of the year

Unit statistics for smallcraft and motorboats for the January-June period indicate that, in all, about 1% more boats were delivered in 2006 than for the corresponding period last year. Enterprises who participated in Finnboat's statistical survey reported that for the period in question 8919 boats (+0,5%) were delivered on the domestic market with 7290 units (+3,4%) exported.

On the domestic market 8244 boats (-1,6%) below 6 meters were sold. In the size class 6-8 meters, 573 boats (+13,7%) were delivered and in the 8-10 meters class, 92 boats (+3,3%). In the largest category, i.e. over 10 meters, boats were separately itemised for the early part of the year. Compared with January-June 2005, during which time 16 units were delivered, the corresponding figure this year was 10. These unit figures do not include yacht sales, since such statistics are not available at this time of the year. In 2005, 186 new yachts (over 26 feet) were sold in Finland. In euro terms, and taking into consideration the decrease in demand for large boats, it is forecast that the value of boat sales on the domestic market will not increase this year.

Export deliveries of boats for the corresponding period were as follows:

Below 6 meters 5697 units (-3,0%)
6-8 meters 1350 units (+37,8%)
8-10 meters 198 units (+47,8%)
Over 10 meters 45 units (+60,7%)

Based on statistics for the period January-May, Norway has become the number one export destination with a 34,2% share (i.e. export value). Sweden was in second place (31%) with Great Britain third (6,7%).

During the January-May period boats were imported mostly from Germany in euro value terms (3,7 million euros). In unit terms most came from Sweden (260). During the period, the total number of boats imported were 1322 (-15,9%) and were valued at 16,9 m euros (-10,1%).

When combined, the 2005 turnover of boat industry and trade came to approx. 450 m euros based on net sales figures provided by Finnboat member enterprises. Of this sum, industry exports accounted for about 208 million euros.

Trade in outboard engines

Based on wholesale delivery statistics, outboard engine sales have again been positive for the first half of 2006. For the period January to June, altogether 21,846 outboard engines were delivered to retail dealers. This is 2,3% more than for the corresponding period in 2005. Of those engines sold, 66,7% were four-stroke. As for traditional two-stroke engines, 6674 were sold as well as 590 of the so-called low-emission 2-T engines. In Finland, the average size of outboard engines sold continues to be small:
about 60% of total engine sales are below 15 hp. During the period in question, 475 engines of over 150 hp were sold.

Boat recycling campaign continues and is now countrywide

The Marine Industries Federation Finnboat and recycling company Kuusakoski Oy continue their co-operation this year also in removing discarded boats for recycling. The experimental campaign which was initiated last year has now been extended to cover the whole country.

In accordance with EU legislation, the disposal of various discarded products carries a so-called producer liability. Under this legislation, producers assume responsibility for the recycling of their products and components associated with them, for their re-utilisation and for organising waste management. To date there is no such legislation with respect to boats.

Boats can be transported to Kuusakoski Oy's nearest service station, details of which can be found on web page

Recycling fees for boats are as follows: boats below 6 metres, 10 euros per metre; boats over 6 metres, 150 euros per ton. By separate agreement, Kuusakoski can also arrange pick-up of the boat.

Taxation still unresolved on motor fuel for boats

The EU concession whereby Finland was exceptionally granted the right in 1995 to use so-called lower-taxed "löpö" in boats may be in jeopardy. If the concession is removed as scheduled at the beginning of 2007, the tax share on motor fuel will increase from about 7 cents per litre to around 31 cents per litre. In association with their British counterparts who are in a similar situation, Finnish marine industry organisations have in recent years been strongly lobbying for reinstatement of the concession. Such extra increases are no longer needed on what is already a painful fuel price level. The matter is currently being dealt with by Finland's Ministry of Finance. The EU energy directive gives member countries the right to decide the issue for themselves. In Finland it is a question of political will. In our view, the desired state income from taxes on boating could through other negative signals should taxation be changed as scheduled.

For further information, please contact:

Managing Director Jouko Huju
Finnish Marine Industries Federation Finnboat ry
Käenkuja 8 A 47, FI-00500 Helsinki