Michael McCormack (Riverina, National Party) Share this | Hansard source

This government often talks of the number of bills passed in this difficult, hung parliament. But it is one thing to pass legislation—good legislation—and another to blindly force new laws through which are onerous on those they affect and which do little to benefit the nation.

Just before last Christmas, the minister released the exposure draft of the coastal trading bill for public comment. Serious shortfalls were identified in the bill's drafting through this consultation process which resulted in a further draft being released on 20 February. The four remaining bills which comprise this package were also released at that time. Despite the multifaceted and extensive changes in the package, stakeholders were given only until 5 March to provide feedback. This is not time enough and not good enough by this government. In spite of this the minister bulldozed through the package, with some further revisions, on 22 March. Now we are debating it, and it is imperative that we get this right because, as the Leader of the Nationals and shadow minister for infrastructure and transport pointed out earlier, Australia's shipping industry must play a more important role in our freight network.

My Riverina electorate is landlocked, but, because it is such a productive region contributing more than $5 billion annually—that is just the Murrumbidgee Irrigation Area, by the way—to the Australian economy, the nation's shipping industry is vital to our export capabilities and certainly those of the MIA.

Australia has the fourth largest shipping task in the world. Sea transport carries all but one per cent of Australia's international cargo by weight and about 75 per cent by value. Domestically, ships carry about 25 per cent of our freight. With freight demands set to double by 2020 and to treble along the eastern seaboard over the same period, it is essential that shipping have a greater role in Australia's freight network. Shipping can move massive quantities of cargo across vast distances, reducing the number of trucks on already busy roads and relieving pressure on the rail network.

The five bills making up the shipping reform package are aimed at achieving a regulatory framework for coastal trading in Australia to boost growth in the number of Australian ships on our coast, enhancing the role of shipping as part of our national freight network and maximising the use of Australian flagged vessels. The package seeks to accomplish these objectives by bringing in a variety of financial incentives for Australian flagged ships, including company and income tax changes and hastening depreciation for ships, and by creating a second register of Australian ships to be known as the Australian International Shipping Register. This is available to ships which meet the eligibility criteria which includes the requirement to have two senior Australian officers on board. Also, the package abolishes part VI of the Navigation Act 1912 and thereby abolishes the current permit and licence system with a new three-tiered licence system.

The coalition referred these bills to the House Committee for Infrastructure and Communications and the Senate Committee for Economics for their consideration. The House committee was given inadequate opportunity to view the bills and assess the numerous submissions provided by various industry participants as to deficiencies in the bills. These bills, if passed, will have a major impact on Australia's coastal shipping industry.

The minister has called this reform of our shipping industry 'historic'. If it is so crucial and so necessary, why then was the House committee, supposedly acting with renewed transparency and due process in this new paradigm in which this parliament is supposed to be functioning, given time to have only a cursory glance at the package? This, on top of the fact that the Senate committee inquiry into the bills is not due to be tabled until June—long after debate in the House of Representatives. The lower house will not have the benefit of the Senate's advice before being expected to vote on the bills before us, and that is unacceptable. Ultimately, the value of this legislation is whether it will meet its objectives. Will the bills before the House re-energise the Australian shipping industry? Will the bills before the House lead to a substantial increase in the number of Australian flagged vessels operating on our coast?

The opposition spokesman on Infrastructure and Transport, who has more experience on these matters than anyone in this place, remains unconvinced.

Mr S Jones interjecting—

See this speech in context