Senate debates

Thursday, 26 November 2015

Bills

Shipping Legislation Amendment Bill 2015; Second Reading

1:26 pm

Photo of Glenn LazarusGlenn Lazarus (Queensland, Independent) Share this | Hansard source

I will be voting against the Shipping Legislation Amendment Bill 2015. In my opinion, this bill is one of the most unpatriotic and un-Australian bills I have ever seen. As a senator for the great state of Queensland, I take great care to consult with the people of Queensland in relation to all government bills and policy to ensure the people of Queensland are consulted, their views are considered and their voices are heard. My approach with this bill has been no different. I have consulted widely with the maritime and shipping industry across Queensland to find out what people think about the bill and how it will impact on the maritime and shipping industry in Queensland. Every person I have spoken to is of the opinion that the bill will kill off Australia's maritime and shipping industry. The industry is strongly opposed to this bill and does not want it to pass under any circumstances. Unlike the government, I have listened to the people of Queensland and the rest of Australia, and I am voicing my disapproval of this bill. I am voting how the people of this country want me to vote. They want me to vote against this foul bill, and that is exactly what I am doing. Perhaps if the government had consulted with the maritime and shipping industry before drafting this bill, we would not be here today wasting taxpayers' time considering this load-of-rubbish bill.

As you may now be aware, I have many concerns regarding this bill. My first concern with this bill is strategic. For an island nation surrounded by coastline, it is absolutely imperative to have a strong, robust and effective shipping industry to transport goods around our coastline and overseas. We should not be placing our country in a position where we are dependent on the rest of the world for the transport of our own goods by water. In years gone by, Australia has boasted a very strong maritime and shipping industry. However, over the years, due to the actions of inept, stupid and short-sighted governments, we have witnessed a sharp decline in our maritime and shipping industry. I have included some statistics to demonstrate this. In 1962 there were 138 Australian flagged vessels operating in Australian waters under Australian law, employing Australian seafarers, moving our cargo around our coastline and overseas. In 1979 this number had reduced to 93. In 1987 there were only 89. By 2002 there were only 54. In 2012 the number had further reduced, to 28. Today, in the year 2015, we only have 15 remaining, and this is due to reduce to 14 very shortly. To summarise: in 1962 we had 138 Australian flagged ships servicing our waters, employing our people, and today we only have 15 ships remaining. Clearly, from a strategic point of view, we do not need legislation that is going to further destroy our maritime and shipping industry; we need legislation that is going to grow our maritime and shipping industry. We need policies that ensure our country is well positioned for the future.

On this issue, I would also like to mention fuel. Sadly, despite the fact that both sides of politics are receiving large donations from resource companies—Australia still lacks a national fuel security policy. Australia has about two to three weeks supply of petrol, diesel and jet fuel. Since the year 2000, our dependence on imported fuel for our nation has grown from 60 per cent to a whopping 91 per cent today. Fuel is the lifeblood of our way of life. As an island, nation surrounded by water, it is vital that we have not only a robust shipping industry but a fuel refinery industry to produce our own fuel. Without this, our country could be brought to a complete standstill at any time.

My second concern with this bill is national security By utilising Australian flagged vessels in our waters, we have more control over the operation of these ships, what is being transported and who is being employed on these vessels. We also have greater control over who comes into our waters, with what and for what reason. If we kill off our own industry, we will have no option other than to rely on the use of foreign owned vessels to operate in our waters, increasing the associated security risks.

Many other countries have already figured this out. For example in America, the US has what is called the Jones Act. The Jones Act requires all goods transported by water between US ports to be carried by US flagged ships, built in the US, owned by US citizens and crewed by US citizens and permanent residents. The Jones Act has assisted to protect the security of the US for many years as well as protect their important shipping industry, which employs many people. Why we cannot move to a similar system in Australia is beyond me.

In the current environment of increased terrorism, our coastline is something which requires increased, not reduced , protection. Currently, foreign ships are able to pull up to ports around our country, and the foreign crews simply disembark and make their way into our cities on buses and modes of transport, virtually unchecked. While government authorities maintain this does not happen, the reality is that it does. And it happens, because there is too little compliance and not enough resources on the ground to manage these issues.

When Australian ships pull into international ports overseas, Australian seafarers are required to undergo extensive checks before leaving ship. Other countries seem to get this basic stuff right, but not us. It saddens me that our own government does not seem to understand the real implications of their own bills and the impact on our country and the real associated risks.

My third concern with this bill is jobs. The bill will remove any residual right of a tax-paying Australian ship to have preference for Australian domestic shipping business opportunities over foreign flagged ships and will give equal rights to a tax-free foreign ship. The bill effectively sets aside the national transport system and replaces it with an international tax-free system in which Australian ship operators and Australian seafarers are not able to compete on the same tax-free terms. In effect, our Australian maritime and shipping industry is being asked to compete against the world in our own waters with a competitive disadvantage.

The result is that foreign flagged vessels with cheap foreign labour will take business, jobs and opportunities away from Australian flagged ships. This means asbestos-riddled ships, unacceptable under Australian legislation, will once again be permissible in Australia, making a mockery of Australian state and federal OH&S laws. Our maritime and shipping industry will simply collapse. Foreign owned companies operating in Australia will utilise cheap and nasty shipping options to move their goods by water instead of Australian ships.

The maritime and shipping industry predicts that, if this bill passes, up to 600 ship engineers will lose their jobs across the country , and many of these will be in my home state of Queensland. Thousands more jobs will be lost across other sectors of the Australian marine and shipping industry as a flow-on effect.

I should note the bill includes a feeble and insulting attempt to pretend to support a decent framework of entitlements for seafarers on foreign vessels, if a foreign vessel operates in our waters for more than 183 days per year. But we all know that this will be avoided as most international shipping fleets can cycle their vessels into and out of Australia in such a way that no single ship ever trips that entitlement.

My fourth issue with this bill is that it sells out Australia. My view is that this bill is nothing more than a direct attack on the Australian maritime and shipping industry and an attempt to give mining companies more power to ship coal and other resources around the country and overseas on foreign owned ships , using cheap foreign labour.

This bill gives all the rights to international companies and foreign countries seeking to buy up our country and exploit our country at the expense of our own people. Australia spends r oughly $9.8 billion per year in freight costs to ship our export products overseas. This is money that is being spent on foreign flagged ships to move our own products to other countries. This is money that is going out of our country and into the hands of other countries. In contrast, Australia only makes $240 million in revenue from freight charges for freight carried on Australian flagged ships. These figure s should be the other way round— Australia should be making money from shipping freight charges to carry our products overseas, not the rest of the world making money out of shipping our products.

In the context of what is happening across the world in the area of shipping, Australia is the fourth largest shipper of goods in the world. This is not surprising, given we are an island nation. So, in view of this, why would we not be seeking to grow our shipping industry? I have no idea why the Turnbull government is hell-bent on destroying the shipping industry, although, as I have said, I have my suspicions and they all relate to donations.

I strongly support Australia's maritime and shipping industry and I want to see it restored and strengthened in this country. I have actively support the implementation of a Jones-style act in Australia; additional tax incentives to help Australian shipping operators compete against foreign owned vessels including costs, labour, insurances, maintenance et cetera; the establishment of a grants program to activate a large-scale shipbuilding industry in Australia; additional tax incentives to assist with the management of depreciation in the Australian shipbuilding and maintenance industry; incentives to encourage Australian and international businesses in Australia to utilise the Australian shipping industry instead of foreign flagged ships; and incentives to encourage international shipping companies to utilise Australian seafarers.

I should also note that I want shipping engineers and masters excluded from the 457 visa and migrant visa lists as a matter of urgency. There are currently many Australian shipping engineers and masters out of work as a direct result of a diminishing Australian maritime and shipping industry. We do not need to be bringing in any more foreign visa holders to this industry, when our own people cannot get jobs. I am determined to work with the maritime and shipping industry and other crossbenchers to pursue a better outcome for Australia's maritime and shipping industry and our country.

In conclusion, I will be voting against this rotten bill, and I encourage the government to start listening to the people of Australia, because they want their elected representatives to put Australia first.

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