Warren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

I rise to respond to the Navigation Amendment Bill 2011. This bill implements two entirely different measures, which I will speak to separately. The first, schedule 1 part 1 of the bill, implements the Maritime Labour Conventionin Australia. The MLC was adopted by the International Labour Organisation in February 2006 and establishes minimum requirements for working and living conditions for seafarers working on ships engaged in commercial activities. The MLC consolidates and updates 68 existing agreements and sets minimum requirements for seafarers to work on a ship to ensure that they are medically fit, of appropriate age and have access to a regulated recruitment and placement system.

Importantly, the MLC addresses various conditions of employment for seafarers, to ensure that they have a fair employment agreement and are paid; have regulated hours of work and rest; have adequate leave, are able to return home and are compensated when a ship is lost; work on board ships with sufficient personnel, with safe, efficient and secure operation of the ship; have decent accommodation, food and drinking water provided under hygienic conditions; and have access to medical services on board and ashore.

The MLC will come into force in international law 12 months after the date on which it has been ratified by 30 ILO members with a total share of the world's gross tonnage of ships of 33 per cent. Countries with over 50 per cent of the global tonnage have already ratified the MLC, with the most populous flag states, such as Panama, Liberia and the Marshall Islands, already completing the ratification process. However, at this point, 30 ILO member countries have not ratified—in fact, to date it is only about half that many. However, it is my understanding, from consultation with industry stakeholders, that a number of other countries, including China, Japan and the member states of the European Union, are actively pursuing ratification, and it is believed that the MLC will reach the 30 member state requirement by the end of this year.

The implications for Australian shipping should the MLC come into force and Australia not have ratified its provisions are significant, and for that reason the coalition will not oppose the bill. But when a Labor government implements changes to labour arrangements on ships, everyone has good reason to be suspicious. Sweetheart deals and union thuggery over the years have delivered an Australian shipping industry which has been uncompetitive and in decline. There are now only 22 Australian-flagged ships left. In spite of the important role that shipping can play in both domestic freight and as a national carrier in our international trade, our shipping industry has been in steady decline.

It is, in my view, important that we express our confidence in the Australian industry and do what we can to make it return to competitiveness. That is especially important as our national freight task grows. Every time a ship retires from service or is not replaced it means more trucks on the road. So, in my view, if we had ships better servicing our capital cities, it would take pressure off the national highway system, and that would have major national advantages. I am concerned that this legislation, the government's carbon tax and its announcements about shipping changes last week do not hasten the demise of the Australian shipping industry and leave our nation's volume exports more exposed to low-priced competition.

The bill will remove inconsistencies between the MLC and the Navigation Act and will provide for the issue of declarations of maritime labour compliance and maritime labour certificates to Australian ships. In Australia, the MLC will apply to Australian ships of 200 gross tonnes and over, whether on domestic or international voyages. However, the requirement to carry documentation as evidence of compliance with the MLC applies only to ships of 500 tonnes and over engaged in voyages to or from ports outside their country of registration. The declaration of the maritime labour compliance certificate will list the requirements that must be met by a particular ship to meet the standards set out in the MLC and will list the proposed measures that must be undertaken by the shipowner for initial and ongoing compliance with the MLC.

The maritime labour certificate will be issued after the ship has been inspected and found to meet the requirements of the MLC. They will be subject to periodic evaluation and will last a maximum of five years before they must be renewed. The bill also establishes an inspection regime whereby all ships in Australian ports will be inspected by surveyors employed by the Australian Maritime Safety Authority to ensure that the ships comply with the requirements of the MLC. AMSA will undertake inspections of foreign ships at Australian ports during routine port state control inspections to ensure compliance with the MLC. But ships carrying out the relevant certifications are considered to have prima facie evidence of compliance with the MLC. Australian ships will be subjected to the same requirements at foreign ports that are party to the MLC.

Australian law and practice generally already comply with the MLC, which means that ratification should have a relatively low regulatory and cost impact on the Australian shipping industry in order to comply. However, if Australia fails to ratify the MLC and it does come into force as expected, Australian ships in foreign ports could experience significant delays due to the extensive inspection requirements imposed on ships not carrying appropriate documentation. This would only occur in ports in countries that have ratified the MLC. Should Australia not ratify the MLC, ships would encounter delays at the ports of some of our major trading partners—for example, both China and Japan have indicated that they will be pursuing ratification. This would hinder our export business and could potentially make Australia a less attractive trading partner.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! It being 2 pm the debate is interrupted. The member will have leave to continue his contribution when the debate is resumed.