Funding aids to marine navigation in the EU: competition and harmonisation

A high proportion of the EU's external trade is transported by sea. Maritime safety is thus of vital concern to the Union. However, while aids to navigation in coastal waters are funded by light dues in the UK, most members treat such aids as public goods. This paper examines the possible effects of light dues on competition between British and north-west European ports and considers how, in the interests of safety, equity and efficiency, harmonisation of aids to navigation funding can be achieved. It concludes that early EU adoption of a uniform cost-recovery mechanism has much to commend it.