Senate debates

Thursday, 12 February 2015

Questions without Notice

Shipping

2:43 pm

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

I thank Senator Bushby for his question and note that he is the only holder of a Graduate Diploma of Business Shipping from the Australian Maritime College in the federal parliament, so he comes to this issue with some qualification. Since Labor's new coastal trading act, which commenced in 2012, there has been a massive 64 per cent reduction in the deadweight tonnage of Australian flag vessels. Despite Labor claiming that its plan would 'promote a viable shipping industry' the amount of coastal freight loaded at Australian ports has continued to fall at an average of 2.4 per cent each year, placing a lot more goods and containers on Australian roads

Shippers have said that container rates from Melbourne to Brisbane are almost twice that of Melbourne to Singapore. The result of this drop in shipping activity is a dramatic increase in the freight and demurrage rates applying to Australian ships. These facts are of significant concern right around Australia but in particular in our home state and Senator Bushby's home state, where geography dictates a reliance on shipping, making shipping vital to trade and therefore to the viability and growth of Tasmanian businesses and jobs.

The Launceston Chamber of Commerce says that Labor's new scheme meant: 'Northern Tasmania has suffered considerably from increased costs and timeliness for exports and imports of freight.' Bell Bay Aluminium in Tasmania, employing about 500 staff, has reported a 63 per cent increase in shipping freight from Tasmania to Queensland.

We need to protect Australian manufacturing jobs, and the coastal shipping act is not serving that. (Time expired)

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