15.—(1) Paragraph (2) applies where the owner or the master of a ship is dissatisfied with—
(a)a decision made by the Secretary of State not to issue a Partial Declaration of Survey of a Passenger Ship in respect of that ship; or
(b)the outcome of a survey or safety management system in-service verification carried out by a surveyor in respect of that ship under these Regulations.
(2) Where this paragraph applies the owner or the master may serve a written notice on the Secretary of State or surveyor, as the case may be, within 21 days of receiving notification of that decision or outcome—
(i)stating that there is a dispute between them; and
(ii)requesting that the dispute be referred to a single arbitrator.
(3) Subject to paragraph (4), an arbitrator referred to in paragraph (2) must be appointed by agreement between the person who served the notice and the Secretary of State or surveyor concerned, as the case may be.
(4) In default of agreement between the person who served the notice and the Secretary of State or surveyor concerned, as the case may be, the arbitrator is such person as may be appointed by the President or Vice President of the Chartered Institute of Arbitrators following a request made by—
(a)one party, after giving written notice to the other party; or
(b)the parties jointly,
but this paragraph does not apply in relation to Scotland.
(5) No person is to be an arbitrator under this regulation unless that person is a member of the Chartered Institute of Arbitrators with specialist knowledge of the shipping industry.
(6) An arbitrator appointed under this regulation has the powers of an inspector conferred by section 259 of the 1995 Act.
(7) In the application of this regulation to Scotland—
(a)any reference to an arbitrator is to be construed as a reference to an arbiter; and
(b)the reference in paragraph (3) to an arbitrator appointed by agreement between the person who served the notice and the Secretary of State or surveyor concerned is to be construed as a reference to a single arbiter so appointed or, in default of agreement, appointed by a sheriff.
(8) The rules for arbitration set out in Merchant Shipping Notice No. M.1613 apply unless alternative procedures are agreed between the person who served the notice and the Secretary of State or surveyor concerned before the commencement of arbitration proceedings.