House debates

Wednesday, 15 August 2007

Aviation Legislation Amendment (2007 Measures No. 1) Bill 2007

Second Reading

10:08 am

Photo of Martin FergusonMartin Ferguson (Batman, Australian Labor Party, Shadow Minister for Transport, Roads and Tourism) Share this | Hansard source

It is drawing a long bow, but the minister understands and appreciates the importance of my comments with respect to these issues. They go to the issue of security in the aviation industry. Because it is an innovative industry looking to the future, it drives economic and social progress. And in terms of the security regime, it is important because it is about the worldwide transportation network, which is essential for global business and tourism. Without a proper security regime, we place global business and tourism at risk. Globally, 25 per cent of all company sales are dependent on air transport and a very efficient security regime. The industry plays a vital role in facilitating economic growth, particularly in developing countries, which have to improve their security regimes. Aviation’s global impact is estimated at $3 billion, equivalent to eight per cent of world gross domestic product, and aviation generates 29 million jobs around the world. Its employment opportunities have actually grown considerably because of the security regime, and the measures that we are putting in place today will create additional jobs in the security industry.

Let us have a further look at the facts when it comes to aviation industry achievements. Whilst we are adding to the cost with the security regime, we have to make savings elsewhere to try and make sure that we are cost efficient—which is also intimately related to this bill, Mr Deputy Speaker, which I think you will appreciate, representing a regional seat dependent on an efficient and highly safe airline industry. Productivity per worker in the industry is very high—3½ times the average for other sectors. There is a highly efficient use of resources and infrastructure. Air transport uses less than one per cent of the land required for transport in the European Union. Air transport covers the shortest distance between two points—generally, 30 per cent below ground transportation means. For decades now, the airline industry has made efficiency improvements of between one and two per cent each year. This might not seem like much, but eliminating a single minute from every flight around the world saves 4.8 million tonnes of greenhouse emissions, which represents a considerable cost and therefore enables us to partly cover the additional costs of the fight against terrorism, as embodied in the provisions of this bill which is before the Committee for debate this morning.

I think this is a big incentive for industry to continue to make these changes, because, as we all appreciate, emissions cost money. With fuel prices at record highs, it is good business to reduce emissions. More so than any industry in Australia, the transport industry has regard, every day of its operations, for the price of oil internationally. It is therefore no coincidence that the financially successful airlines are also often the greenest, as they invest heavily in new aircraft and technologies to burn fuel more efficiently. New aircraft are 70 per cent more fuel efficient than aircraft 40 years ago and 20 per cent more efficient than aircraft 10 years ago. Carbon dioxide emissions have simultaneously been reduced by 50 per cent, while unburned hydrocarbons and smoke have been cut by 90 per cent. Research programs aim to achieve a further 50 per cent fuel and CO2 saving and an 80 per cent reduction in nitrogen oxide by 2020—all therefore enabling the industry to cover the additional costs of security and the fight against terrorism.

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