Richard Colbeck (Tasmania, Liberal Party, Minister for Tourism and International Education) Share this | Hansard source

The government is very committed to boosting the productivity of the Australian shipping industry and reducing red tape. Contrary to the presentation we just heard from Senator Lazarus's and Senator Rice, we are committed to boosting the competitiveness of the Australian shipping industry. That has been one of the objectives we have had for a long time, because we know that an undue cost in the supply chain makes the entire supply chain uncompetitive. So Senator Lazarus' sugar farmers who are moving sugar around the Australian coastline under this piece of legislation will have access to more competitive shipping. That is the point. That is the point of this whole process, and I will dispute his assertion that the industry does not support this; because they do. I also dispute his assertion that it is all about replacing Australian labour with foreign labour, because that is not what this bill enables. So can I say, Senator Lazarus, I am going to have to disagree with the arguments you have made in your presentation.

The government wants the Australian shipping industry to be competitive so it can provide an efficient and competitive service to Australian industry; that is the point. That is what we are striving to do and that is what we have been striving to do through previous pieces of legislation that we have looked at. So exposing the Australian shipping industry to competition will drive innovation, will drive reductions in cost and will make them look more closely at their businesses to provide a more cost competitive and efficient service to Australian shippers. That is what it is about.

We also remain committed to ensuring that our transport systems, be they road, rail, aviation or maritime, are safe, secure and efficient. In this regard we continue to foster Australia's economic prosperity—as I said—through a safe, secure and efficient maritime transport system. Australia's maritime transport safety settings are regularly reviewed to ensure that they are appropriate to changes in the maritime security environment. And it is a delicate balance between security and regulatory overlay. It is a delicate balance, and it is important that we continue to look at it.

A recent joint review between industry and the Australian government was undertaken to investigate the need to continue security regulating Australian ships solely on interstate voyages. That review confirmed that there is no ongoing benefit to security regulating Australian ships used solely on interstate voyages except for passenger and vehicle ferries. As such, the Maritime Transport and Offshore Facilities Security Amendment (Inter-State Voyages) Bill 2015 will see a reduction in red tape which does not provide any security benefit. In other words, the security regulation of Australian ships engaged solely on interstate voyage except for passenger and vehicle ferries will be ceased. This action will provide a reduction in running costs for operators of Australian flagged ships engaged solely on interstate voyages. Additionally, it establishes a level playing field for ships moving between states and those solely engaged on intrastate voyages, as arguably there is no increase to a ship's security risk that comes from crossing a domestic state border.

The security risks will not change if the existing regulatory regime is removed, and this bill does not prevent operators from employing their own security measures to protect their business operations and assets. However, should there be a change in the maritime threat environment there are a number of powers available under the act to protect the shipping industry, including a requirement for ships to implement additional security measures while in Australian ports and reregulation of Australian ships on interstate voyages.

While not a part of this bill, it is proposed that passenger and vehicle ferries on interstate voyages will continue to be regulated as it is in the public interest. This bill has no impact on the security arrangements of foreign flagged ships operating in Australian territorial waters.

These ships still need to be security regulated by their flagged state and are required to undertake a range of security activities specified in the International Ship and Port Facility Security Code, and include these in their ship security plans.

Furthermore, all foreign ships entering Australian ports are required to have and to provide a valid International Ship Security Certificate or equivalent to the Australian Border Force, and this information is made available to ports. Crews of foreign-flagged ships will continue to be required to be escorted or monitored when in a maritime security zone.

These amendments will have a positive outcome for industry by reducing the regulatory burden and associated costs without compromising security. I commend the bill to the Senate.