Navigation Act (1988)
The Navigation Act of 1988 is an Act of the Federal Stanora regulating seaborne merchant shipping among the states and provinces included in the Inner Federation. Specifically, it requires that all cargo transported by sea from one province of the Inner Federation to another province of the Inner Federation must be carried aboard a Kiravian-flagged vessel crewed by Kiravian nationals or lawful alien residents of the Kiravian Federacy, and owned by persons or entities domiciled in the Kiravian Collectivity. It principally affects coastwise shipping around Great Kirav and shipping among Great Kirav, Koskenkorva, and Æonara.
| Navigation Act | |
|---|---|
 | |
| Federal Stanora | |
| |
| Territorial extent | the Federation |
| Enacted by | Federal Stanora |
| Enacted | 1988 |
| Administered by | Kiravian Maritime Executive |
| Introduced by | S. Verramar (CDP-Metrea) |
| Summary | |
| Requires that all cargo shipped between ports of the Federation be carried on vessels that are Kiravian-crewed and -owned. | |
| Status: In force | |
Background
The Navigation Act was enacted against the backdrop of recent Kiravian Reunification, as part of the process of merging the economies of the newly post-communist Kiravian mainland and the established capitalist overseas provinces. Additionally, the growing use of flags of convenience - such as those of underdeveloped native Cronan states, landlocked countries, and Pribraltar - threatened the strength and importance of the Kiravian merchant navy and the nation's proud maritime traditions. In this context, the Act was adopted as a protectionist measure to carve out an exclusive market for Kiravian-flagged shipping and ensure a supply of jobs for Kiravian sailors. Politically, it represented the will of a legislative entente between the more statist and developmentalist wing of the Renaissance Party, National-Republicans, Christian democrats, and the socialist People's Front.
Reception
The Navigation Act has been both praised and criticised. Economic liberals charge that the restrictions imposed by the Act greatly reduce economic efficiency, raise prices for consumers and for businesses, and disincentivise accession to the Inner Federation by overseas provinces (as originally intended by the architects of the Federation project). However, it has been defended by labour advocates, the domestic shipping industry, environmentalists, and Sarolastan politicians (Sarolastans make up over one third of the Kiravian merchant marine labour force, and remittances from sailors are an important source of income for many Sarolastan families).
In O'Shea v. the Admiralty (1994), a federal court ruled that the Act did not require the beneficial owner of a Navigation Act-compliant vessel to be a Kiravian national or lawful resident, meaning that it is possible for foreign entities to control compliant vessels through a Kiravian-based subsidiary.