Senators yesterday updated Bermuda's merchant shipping laws with the passage of an all encompassing Merchant Shipping Act which enhances the Transport Minister's powers to regulate ships flying the Bermuda flag.

The Act brings legislation into line with international conventions and improves Bermuda's competitiveness as a shipping register.

And it means that Bermuda would no longer have to rely on UK laws being extended to the Island. Further legislative changes will be required to further update the legislation.

The law allows the Minister to come up with registration regulations, and regulations in the pipeline will extend ownership eligibility to include corporate bodies of the European Economic Area.

And the British ensign will be replaced by the Bermuda ensign.

Government would have greater authority over ships flying the flag.

Benefits to Bermuda include increased Government revenue from new ships coming on to the register and greater income to the private sector for providing support services to ship owners, said ruling party senator Victoria Pearman who introduced the bill.

Detailed regulations will be drafted in the near future.

"Many of these regulations are only subject to the negative resolution procedure, thus making their future amendment by the minister as easy and straightforward as possible," Sen. Pearman said.