Senate debates

Wednesday, 13 May 2015

Bills

Seafarers Rehabilitation and Compensation and Other Legislation Amendment Bill 2015; In Committee

11:35 am

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Hansard source

I table a supplementary explanatory memorandum relating to the government amendments to be moved to this bill and seek leave to move government amendments (1) to (7) on sheet GT144 together.

Leave granted.

I thank the Senate. I move:

(1) Clause 2, page 2 (after table item 3), insert:

(2) Schedule 1, heading, page 3 (line 1), omit "Constitutional coverage", substitute "Initial constitutional coverage".

(3) Schedule 1, item 2, page 3 (lines 13 and 14), to be opposed.

(4) Schedule 1, item 5, page 4 (line 20), omit "subitem (2)", substitute "subitems (2) and (3)".

(5) Schedule 1, item 5, page 4 (after line 29), at the end of the item, add:

(3) The amendments made by this Part do not apply in relation to an injury, or in relation to loss or damage, if:

  (a) notice of the injury, or of the accident that resulted in the loss or damage, was given under section 62 of that Act before the day the Bill that became this Act was introduced into the House of Representatives; and

  (b) the notice was intended to be a notice for the purposes of that section; and

  (c) no claim or application for State compensation (within the meaning of section 139 of that Act) has been made, or purportedly made, in relation to the injury, loss or damage.

(6) Schedule 1, item 7, page 6 (lines 4 and 5), to be opposed.

(7) Page 6 (after line 11), after Schedule 1, insert:

Schedule 1A—Constitutional coverage from the day after this Act receives the Royal Assent

Part 1—Seafarers rehabilitation and compensation

Seafarers Rehabilitation and Compensation Act 1992

1 At the end of section 19

  Add:

(2) This Act also has the effect it would have if:

  (a) a reference to an employer were limited to a reference to a trading corporation formed within the limits of the Commonwealth; and

  (b) a reference to an employee were limited to a reference to an employee employed by a trading corporation formed within the limits of the Commonwealth.

(3) This Act also has the effect it would have if:

  (a) a reference to an employer were limited to a reference to a financial corporation formed within the limits of the Commonwealth; and

  (b) a reference to an employee were limited to a reference to an employee employed by a financial corporation formed within the limits of the Commonwealth.

(4) This Act also has the effect it would have if:

  (a) a reference to an employer were limited to a reference to a foreign corporation; and

  (b) a reference to an employee were limited to a reference to an employee employed by a foreign corporation.

(5) Subsection (3) does not have the effect of applying this Act with respect to:

  (a) State banking that does not extend beyond the limits of the State concerned; or

  (b) State insurance that does not so extend.

2 Section 19A

  Repeal the section.

3 Application of amendments

  The amendments of the Seafarers Rehabilitation and Compensation Act 1992 made by this Part apply in relation to any injury, loss or damage suffered by an employee on or after the commencement of this item.

Part 2—Occupational health and safety

Occupational Health and Safety (Maritime Industry) Act 1993

4 At the end of section 6

  Add:

(5) Without prejudice to its effect apart from this subsection, this Act also has effect as provided by subsections (6), (7) and (8).

(6) This Act has, by force of this subsection, the effect it would have if:

  (a) a reference to an operator were limited to a reference to a trading corporation formed within the limits of the Commonwealth; and

  (b) a reference to an employee were limited to a reference to an employee of a trading corporation formed within the limits of the Commonwealth; and

  (c) a reference to a contractor were limited to a reference to a contractor working for a trading corporation formed within the limits of the Commonwealth; and

  (d) a reference to a manufacturer were limited to a reference to a manufacturer that is a trading corporation formed within the limits of the Commonwealth; and

  (e) a reference to a supplier were limited to a reference to a supplier that is a trading corporation formed within the limits of the Commonwealth; and

  (f) a reference to a person in sections 22, 23 and 24 were limited to a reference to a person working for a trading corporation formed within the limits of the Commonwealth.

(7) This Act has, by force of this subsection, the effect it would have if:

  (a) a reference to an operator were limited to a reference to a financial corporation formed within the limits of the Commonwealth; and

  (b) a reference to an employee were limited to a reference to an employee of a financial corporation formed within the limits of the Commonwealth; and

  (c) a reference to a contractor were limited to a reference to a contractor working for a financial corporation formed within the limits of the Commonwealth; and

  (d) a reference to a person in sections 22, 23 and 24 were limited to a reference to a person working for a financial corporation formed within the limits of the Commonwealth.

(8) This Act has, by force of this subsection, the effect it would have if:

  (a) a reference to an operator were limited to a reference to a foreign corporation; and

  (b) a reference to an employee were limited to a reference to an employee of a foreign corporation; and

  (c) a reference to a contractor were limited to a reference to a contractor working for a foreign corporation; and

  (d) a reference to a manufacturer were limited to a reference to a manufacturer that is a foreign corporation; and

  (e) a reference to a supplier were limited to a reference to a supplier that is a foreign corporation; and

  (f) a reference to a person in sections 22, 23 and 24 were limited to a reference to a person working for a foreign corporation.

(9) This Act does not apply with respect to:

  (a) State banking that does not extend beyond the limits of the State concerned; or

  (b) State insurance that does not so extend.

5 Application of amendments

  The amendments made by this Part apply in relation to anything done on or after the commencement of this item.

The amendments that are being sought to be moved by the government are designed to ensure that we get this legislation absolutely right. There was some comment by the Greens' senator in her contribution to the second reading debate about how quickly we had brought in the legislation. We did think we were on the right track with that and would get some support, but there were hiccups and, as a result, matters were delayed until now. We have been able to sort out those hiccups through a variety of mechanisms which now allow, as we believe it, for business to continue as normal. It would be fair to say that the coverage from 330 ships to 11,000 was a fairly dramatic increase in anybody's language, especially when nobody genuinely expected that to be the case. The scheme had been operating until some enterprising individual had a look and thought the law might actually say something different to that which had been understood. Right, wrong or indifferent, the Federal Court made its determination, and here we are today trying to deal with the legislation to make sure that it says what was intended.

Given all that, the government has moved this raft of amendments. I thank the Senate for giving leave for me to move them all together—albeit I would alert honourable senators to the fact that there will need to be two separate questions, first to support some of our amendments, and then to remove aspects there will be a separate question. I am sure the chair will most adequately handle that; we can rely on the good Senator Marshall for guidance.

In moving the government's raft of amendments, I can simply say that in response to concerns among some industry participants the bill is being amended to limit the application of the bill to the past coverage of the scheme. The amendments will provide that the coverage provisions are amended—they will date back to the commencement of the scheme and have effect until the day the bill receives royal assent. From the day after the bill receives royal assent, the repeal of subsections 19(2) to 19(5) inclusive of the Seafarers Rehabilitation and Compensation Act is reversed, and those subsections are re-enacted with effect from the day after the bill receives royal assent. Similarly, the repeal of subsections 6(5) to 6(9) of the Occupational Health and Safety (Maritime Industry) Act is reversed, and those subsections are re-enacted with effect from the day after the bill receives royal assent.

The bill contains amendments so that a ship must be directly and substantially engaged in interstate or international trade or commerce to be covered. After further consultations with scheme participants, the government opposes these amendments to coverage. The bill will also be amended to ensure that it does not affect people who had provided notice of injury but had not yet made a claim before the bill was first introduced into the House of Representatives, so long as the notice was provided with the intention to make a claim for compensation under the seafarers act and the person has not made a claim for compensation under state legislation for the same injury.

The bill, as amended, still achieves the policy objective of providing certainty regarding past actions taken under the Seacare scheme. It will also assist with providing certainty over past actions taken under relevant state and territory legislation. The long-term future coverage of the Seacare scheme will be the subject of consultations with industry participants and will be comprehensively addressed in a bill for broader reform of the Seacare scheme to be introduced hopefully later this year. I have indicated that I will be writing to the Seacare Authority to invite them to monitor the impact of this bill and advise of any unintended consequences.

With these amendments, I am confident there is a unanimity of view amongst all of the stakeholders that have an interest in this particular bill. I commend the amendments to the Senate.

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