Introduction
Referral of inquiry
1.1
On 19 October 2017, the Senate referred the provisions of the Coastal
Trading (Revitalising Australian Shipping) Amendment Bill 2017 (the bill) to
the Senate Rural and Regional Affairs and Transport Legislation Committee (the
committee) for inquiry and report by 4 December 2017.[1]
1.2
The bill seeks to amend the Coastal Trading (Revitalising Australian
Shipping) Act 2012 (the Coastal Trading Act) to simplify coastal trading
regulation, to reduce the administrative impost associated with the current
regime, to expand the coverage of the Coastal Trading Act, and to provide
clarity on a number of minor technical matters.[2]
Purpose of the bill
1.3
As noted above, the bill seeks to amend the Coastal Trading Act. In
summary, the purpose of the bill is to:
-
remove the five-voyage minimum requirement to apply for a
temporary licence;
-
provide the Minister with the power to waive the need for
consultation in relation to certain cargo and passenger types (thereby focusing
the need for consultation on those sectors where Australian vessels can provide
competition to foreign flagged vessels);
-
streamline the processes for making changes to temporary
licences;
-
remove the need for temporary licence holders to provide voyage
notifications in certain circumstances;
-
amend the tolerance provisions for temporary licences;
-
change the way in which licences are issued in emergency
situations;
-
amend the definition of coastal trading to include voyages
commencing and concluding at the same port, ships engaged in dry-docking, and
voyages between ports and other defined places;
-
clarify that applications for a variation to a temporary licence
must be made by the temporary licence holder;
-
clarify that agents can apply for a temporary licence on behalf of
vessel owners or masters; and
-
require temporary licence holders to include a vessel's
International Maritime Organization (IMO) number in voyage reports.[3]
Statement of compatibility with
human rights
1.4
The Explanatory Memorandum (EM) notes that the bill is compatible with
human rights and freedoms recognised or declared in the international
instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011.
1.5
The Parliamentary Joint Committee on Human Rights assessed the bill and
reported that the bill did not raise human rights concerns.[4]
Consideration by Senate Scrutiny of
Bills Committee
1.6
The Committee for the Scrutiny of Bills indicated in Scrutiny Digest
number 12 of 2017 it had "no comment" on the bill.[5]
Conduct of the inquiry
1.7
The committee advertised the inquiry on its webpage, and called for
submissions by 13 November 2017. The committee also wrote to a number of
Commonwealth and state government departments, industry stakeholder groups,
organisations and individuals to invite submissions. The committee received 19 submissions,
which are available on the committee's website. A list of submissions can also
be found at Appendix 1 of this report.
1.8
The committee appreciates the time and work of all those who provided
written submissions to the inquiry – these submissions greatly assisted the
committee in its deliberations.
1.9
The committee did not conduct public hearings for the purposes of the
inquiry and based its deliberations on the written evidence provided. The
committee's decision not to hold public hearings in relation to the bill also took
into consideration the fact that the Senate Rural and Regional Affairs and
Transport References Committee had recently undertaken a lengthy and detailed
inquiry into Australia's shipping industry.
RRAT References Committee: Inquiry into the increasing use of so-called
Flag of Convenience shipping in Australia
1.10
In June 2015, the Senate referred an inquiry into the increasing use of
so-called Flag of Convenience (FOC) shipping in Australia to the Senate Rural
and Regional Affairs and Transport References Committee (the references committee)
for inquiry and report.
1.11
The terms of reference for the inquiry included an investigation into
the effect FOC shipping has on Australia's national and fuel security,
employment and occupational health and safety standards and marine environment.
The committee also reviewed the progress made in this area since the 1992 House
of Representatives Standing Committee on Transport, Communications and
Infrastructure report Ships of shame: inquiry into ship safety.[6]
1.12
The references committee's interim report, which was tabled in May 2016,
examined a number of key issues around the use of FOC shipping in Australia. In
addition to an examination of employment issues – including poor working
conditions – the committee also investigated the decline of the local shipping
sector. The interim report also inquired into, and reported on, the risks FOC
shipping presents to Australia's national and fuel security and the environment.[7]
1.13
The recommendations contained in the interim report largely focused on
growing the Australian maritime sector, enhancing work opportunities and
conditions for Australian seafarers and improving the conditions, legal
accountability and safety of FOC vessels operating in Australian waters.[8]
1.14
In July 2017, the references committee tabled its final report. In
addition to providing an overview of the state of FOC shipping internationally,
the report provided an outline of the current state of Australia's shipping
industry and the references committee's investigation into the national
security and environmental threats posed by FOC vessels.
1.15
The report also contained a summary of the various reviews that have
been undertaken in relation to the Australian maritime sector over recent
years. More specifically, the report considered the efficacy of the Coastal
Trading Act – including the temporary licence system.
1.16
Finally, the references committee's final report acknowledged the announcement
made by the Minister for Infrastructure and Transport, the Hon. Darren Chester,
MP regarding possible reforms to coastal shipping. In making the announcement,
on 21 March 2017, the Minister indicated that there is potential for shipping
to play a larger role in the national freight task. The Minister also noted,
however, that it has "become clear that limitations in the current
regulatory system are working against that potential being realised", and
there is a need to:
...address a range of administrative issues in the Coastal
Trading (Revitalising Australian Shipping) Act 2012, which place
unnecessary burdens on shipping companies and the Australian businesses that
rely on coastal shipping.[9]
Structure of report
1.17
This report consists of three chapters. Chapter 1 provides an
introduction to the bill and the inquiry. Chapter 2 provides an overview of the
current legislation and the provisions of the bill, and Chapter 3 outlines the
key issues raised in submissions provided by stakeholders.
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