Global Superyacht Forum 2010: Day Three
Three days of debate at Global Superyacht Forum were wrapped up on Thursday in Amsterdam with presentations including insight from owners who have invested in the industry, a look at VAT issues in yachting, and paint...…
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By Ellie Brade
The final day of Global Superyacht Forum 2010 opened with Paper 8 - VAT & Harmonisation - is it even possible? Co-chairing the debate was John Leonida of Clyde & Co, with a panel of Carlo Galli – Clifford Chance; James Lawson – Hill Dickinson and Lorenzo Pollicardo – Federeganti Yacht. The general answer to whether VAT and harmonisation is possible was that it currently wasn’t although someday it may be more so. The panel illustrated the problems faced, referring to such examples as the seizure of M/Y Force Blue [as reported here on Synfo.com]. Generally, however, the consensus was that provided the rules are actually followed the French Commercial Exemption (FCE) law is still useful and applicable for superyachts with a genuine charter programme. One strategy adopted by some owners for peace of mind is to pay the VAT regardless of whether they may be able to avoid its payment. Various leasing schemes were also discussed which currently are fully functional within the EU though some members of the panel clearly felt that those that involved paying very minimal VAT may well potentially have a short shelf life.
The second session of the day was Paper 9 - Technical paper - The Truth Behind Satellite Communications. On the panel were Barbara Bersani – Marlink; Kartik Sinha – Inmarsat and Derik Wagner - MTN Satellite Communications. For this paper the panelists outlined the differences in service providers amongst Tier 1 and Virtual service providers. The focus was on examining what owners want, what they actually need, and what they get on their yachts.
Following the final networking lunch came the much-anticipated Paper 10 - Owners investing in the industry. Co-Chaired by Paul Miller - Underwriting Risk Services Ltd – the Paper was presented by Salim Erdem - Merit Gemicilik A S / Moonen and Sean Ewing of Pinmar. As well as being a superyacht owner, with another under construction, Erdem acquired the majority shares in Moonen Shipyards in 2009. Ewing too has invested in the industry by purchasing the majority share in Pinmar, which was previously held by the Ferretti Group, and is now Pinmar’s Chairman. Erdem’s and Ewing’s views on the industry were highly personal, diverse, interesting and contradicting. Erdem clearly saw yachting as an emotional and artistic venture and even went so far as to say that he didn’t feel a yard should necessarily make a profit. Ewing, whose background is in financial services and the investment sector, took a much more numbers and business practice related view. Both offered delegates serious insight into the mind of the yacht owner and the HNWI and Ewing in particular provided a ‘to do’ or wish list for the industry, that has in recent times been hampered by crisis, to improve its performance. In the subsequent coffee break it was clear that this was one of the most, if not the most, popular session of the entire event.
After the inspiring presentation by Erdem and Ewing came the final two papers which focused on the always topical subject of paint. First was Paper 11 - Technical paper - Coatings I with a panel of Alessandro Gallifuoco – Benetti; Ken Hickling – Awlgrip and Tom de Vries - The De Vries Group. The panel, made up of members of the SYBAss coatings working group, brought the latest thinking in coatings standards to the stage. Although the ISO standards have not been finalised as yet delegates were told that that they are coming soon, perhaps as early as next year. It was also learned that the ISO standards are not absolute but rather act as a framework for assessing the coating. This means that absolute values are not incorporated simply to standardise and define how the measurements must be taken and which measurements must be taken.
The final debate of GSF 2010 was Paper 12 - Technical paper - Coatings II with a panel of Dr. Benigna v. Brederlow - Wrede Consulting; Remy Millott – Pinmar and Kay Wrede - Wrede Consulting. Continuing with the theme of standards Millot and his co-presenters explained Pinmars new definitive painting standard. This standard contains a number of measurements to be made and a regime for making them. But in contrast to the previous paper the standard does provide absolute values, or in fact a range of values. Millot commented that these are not easy to achieve but believes that Pinmar can in fact achieve them consistently. By implication these absolutes should also be achievable by any other applicator of equivalent quality. The standards and the numbers are open and available to all within the industry and were developed in consultation with manufacturers and paint consultants. Wrede Consultancy collaborated with Pinmar, aiding them with the scientific aspects of developing the standard. Delegates were surprised to learn that all the effort that they had put in was gratis, similar to Pinmar’s making the standard open and available to the industry.
With the debate complete the 2010 Global Superyacht Forum closed with the Global Superyacht Party, the theme of which was ‘Shore Leave’. If the whole three day event could be summarised in one feeling it was that the industry needs to look at wider thinking, drawing on the expertise and experience of related luxury industries. Drawing new blood into the industry is key and thinking outside of the box outside of that box may be the key route to doing so.
The final day of Global Superyacht Forum 2010 opened with Paper 8 - VAT & Harmonisation - is it even possible? Co-chairing the debate was John Leonida of Clyde & Co, with a panel of Carlo Galli – Clifford Chance; James Lawson – Hill Dickinson and Lorenzo Pollicardo – Federeganti Yacht. The general answer to whether VAT and harmonisation is possible was that it currently wasn’t although someday it may be more so. The panel illustrated the problems faced, referring to such examples as the seizure of M/Y Force Blue [as reported here on Synfo.com]. Generally, however, the consensus was that provided the rules are actually followed the French Commercial Exemption (FCE) law is still useful and applicable for superyachts with a genuine charter programme. One strategy adopted by some owners for peace of mind is to pay the VAT regardless of whether they may be able to avoid its payment. Various leasing schemes were also discussed which currently are fully functional within the EU though some members of the panel clearly felt that those that involved paying very minimal VAT may well potentially have a short shelf life.
The second session of the day was Paper 9 - Technical paper - The Truth Behind Satellite Communications. On the panel were Barbara Bersani – Marlink; Kartik Sinha – Inmarsat and Derik Wagner - MTN Satellite Communications. For this paper the panelists outlined the differences in service providers amongst Tier 1 and Virtual service providers. The focus was on examining what owners want, what they actually need, and what they get on their yachts.
Following the final networking lunch came the much-anticipated Paper 10 - Owners investing in the industry. Co-Chaired by Paul Miller - Underwriting Risk Services Ltd – the Paper was presented by Salim Erdem - Merit Gemicilik A S / Moonen and Sean Ewing of Pinmar. As well as being a superyacht owner, with another under construction, Erdem acquired the majority shares in Moonen Shipyards in 2009. Ewing too has invested in the industry by purchasing the majority share in Pinmar, which was previously held by the Ferretti Group, and is now Pinmar’s Chairman. Erdem’s and Ewing’s views on the industry were highly personal, diverse, interesting and contradicting. Erdem clearly saw yachting as an emotional and artistic venture and even went so far as to say that he didn’t feel a yard should necessarily make a profit. Ewing, whose background is in financial services and the investment sector, took a much more numbers and business practice related view. Both offered delegates serious insight into the mind of the yacht owner and the HNWI and Ewing in particular provided a ‘to do’ or wish list for the industry, that has in recent times been hampered by crisis, to improve its performance. In the subsequent coffee break it was clear that this was one of the most, if not the most, popular session of the entire event.
After the inspiring presentation by Erdem and Ewing came the final two papers which focused on the always topical subject of paint. First was Paper 11 - Technical paper - Coatings I with a panel of Alessandro Gallifuoco – Benetti; Ken Hickling – Awlgrip and Tom de Vries - The De Vries Group. The panel, made up of members of the SYBAss coatings working group, brought the latest thinking in coatings standards to the stage. Although the ISO standards have not been finalised as yet delegates were told that that they are coming soon, perhaps as early as next year. It was also learned that the ISO standards are not absolute but rather act as a framework for assessing the coating. This means that absolute values are not incorporated simply to standardise and define how the measurements must be taken and which measurements must be taken.
The final debate of GSF 2010 was Paper 12 - Technical paper - Coatings II with a panel of Dr. Benigna v. Brederlow - Wrede Consulting; Remy Millott – Pinmar and Kay Wrede - Wrede Consulting. Continuing with the theme of standards Millot and his co-presenters explained Pinmars new definitive painting standard. This standard contains a number of measurements to be made and a regime for making them. But in contrast to the previous paper the standard does provide absolute values, or in fact a range of values. Millot commented that these are not easy to achieve but believes that Pinmar can in fact achieve them consistently. By implication these absolutes should also be achievable by any other applicator of equivalent quality. The standards and the numbers are open and available to all within the industry and were developed in consultation with manufacturers and paint consultants. Wrede Consultancy collaborated with Pinmar, aiding them with the scientific aspects of developing the standard. Delegates were surprised to learn that all the effort that they had put in was gratis, similar to Pinmar’s making the standard open and available to the industry.
With the debate complete the 2010 Global Superyacht Forum closed with the Global Superyacht Party, the theme of which was ‘Shore Leave’. If the whole three day event could be summarised in one feeling it was that the industry needs to look at wider thinking, drawing on the expertise and experience of related luxury industries. Drawing new blood into the industry is key and thinking outside of the box outside of that box may be the key route to doing so.
Thanks must go to all speakers, delegates and the sponsors – Awlgrip, Cayman Registry, Clyde & Co, Current Corporation, Inmarsat, Intelisea, Lutron, MAST, MedAire, Pantaenius, Pendennis, Rybovich and Wartsila - for making the event possible.
Anyone interested in registering for Global Superyacht Forum 2011 or any other events organised by the SuperyachtEvents team should contact Andy Howell – andy@theyachtreport.com - or visit SuperyachtEvents.com
Transcripts will be available to attending delegates and subscribers to the Business and Executive packages over the coming weeks at SuperyachtEvents.com
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