18Determination of prices and costs

18 Determination of prices and costs

(1) In this section:

guidelines means guidelines determined by the Minister under subsection (8).

(2) The Secretary may, by signed writing, determine the amount that is, for the purposes of this Act, to be taken as the price paid for a ship by a shipowner who has made a claim for a grant under subsection 8(1) or (2) in relation to the ship if the Secretary thinks that the amount the shipowner claims was the price paid, or that was in fact the price paid, for the ship: (a) is incorrect; or (b) has been fixed in order to obtain an increase in the grant; or (c) is unduly higher than prices paid by other persons for comparable ships; or (d) has been increased because of the influence of a commercial, financial or other relationship between the shipowner and the person who sold the ship (other than a relationship created by the sale itself); or (e) is an unreasonable price because of a prescribed reason; or (f) is excessive having regard to the guidelines. (3) In determining the amount that is to be taken as the price paid for the ship, the Secretary: (a) must have regard to the guidelines; and (b) may have regard to: (i) the prices of comparable ships; and (ii) any valuation of the ship made under section 19; and (iii) such other matters as the Secretary thinks appropriate. (4) The Secretary may, by signed writing, determine the amount that is, for the purposes of this Act, to be taken as the cost of converting a ship in relation to which the shipowner has made a claim for a grant under subsection 8(3) if the Secretary thinks that the amount the shipowner claims was, or that was in fact, the cost of converting the ship: (a) is incorrect; or (b) has been fixed in order to obtain an increase in the grant; or (c) is unduly higher than costs incurred in relation to comparable conversions of comparable ships; or (d) has been increased because of the influence of a commercial, financial or other relationship between the shipowner and the person who carried out the conversion (other than a relationship created by the agreement to carry out the conversion); or (e) includes charges for work done that was not required to convert the ship from an ineligible ship into an eligible ship; or (f) is unreasonable because of a prescribed reason; or (g) is excessive having regard to the guidelines. (5) In determining the amount that is to be taken as the cost of converting the ship, the Secretary: (a) must have regard to the guidelines; and (b) may have regard to: (i) the cost of comparable conversions of other ships; and (ii) the work required to convert the ship from an ineligible ship into an eligible ship; and (iii) any valuation of the cost of the conversion made under section 19; and (iv) such other matters as the Secretary thinks appropriate. (6) The Secretary may, by signed writing, determine the amount that is, for the purposes of this Act, to be taken to be the cost of structural or equipment changes to a ship in relation to which the shipowner has made a claim for a grant under subsection 8(6) if the Secretary thinks that the amount the shipowner claims was, or that was in fact, the cost of the changes: (a) is incorrect; or (b) has been fixed in order to obtain an increase in the grant; or (c) is unduly higher than costs incurred in relation to comparable changes to comparable ships; or (d) has been increased because of the influence of a commercial, financial or other relationship between the shipowner and the person who carried out the changes (other than a relationship created by the agreement to carry out the changes); or (e) includes charges for: (i) structural or equipment changes that are not of a kind referred to in paragraph 8(6)(b); or (ii) other work that is not required as part of a modification of a kind in relation to which grant under subsection 8 (6) is payable; or (f) is unreasonable because of a prescribed reason; or (g) is excessive having regard to the guidelines. (7) In determining the amount that is to be taken as the cost of structural or equipment changes to the ship, the Secretary: (a) must have regard to the guidelines; and (b) may have regard to: (i) the cost of comparable changes to other ships; and (ii) the work involved in the changes; and (iii) any valuation of the cost of the changes under section 19; and (iv) such other matters as the Secretary thinks appropriate. (8) The Minister may, by legislative instrument, determine guidelines in relation to the following matters: (a) the circumstances in which an amount that is claimed was, or that was in fact, the price paid for a ship, the cost of converting a ship, or the cost of structural or equipment changes to a ship, is excessive; (b) the way in which the Secretary is, under this section, to determine the amount that is, for the purposes of this Act, to be taken as the price paid for a ship, the cost of converting a ship, or the cost of structural or equipment changes to a ship.