Australia’s Federal Government has committed just under AUD$30m to its controversial Strategic Fleet in the the recent budget.
About $21.7 million has been committed over five years from 2024–25 for the Department of Infrastructure, Transport, Regional Development, Communications and the Arts to support the establishment of a Strategic Fleet, including delivery of the Strategic Fleet Pilot Program.
Another $4.7 million over three years from 2024-2024 $4.7 million over three years from 2024–25 to undertake a review of the Shipping Registration Act 1981 and Coastal Trading (Revitalising Australian Shipping) Act 2012.
Another $2.7m million over two years will be committed from 2024-2025 for a two-year pilot programme led by the Office of the Fair Work Ombudsman to monitor compliance with the payment of Seagoing Industry Award 2020 Schedule A wages to seafarers on foreign vessels engaged in coastal trading under a Temporary Licence.
Funding for a Strategic Fleet Pilot Program with three privately-owned vessels which would be available to requisition in times of need, with funding to be held in the Contingency Reserve until commercial negotiations have been completed and is not for publication as it would impair the Commonwealth’s position in negotiating contracts with industry.
Federal Transport and Infrastructure Minister, the Hon Catherine King MP, said in a statement on Tuesday 14 May that: “The Albanese Government’s election commitment for an Australian-flagged and crewed maritime strategic fleet has been advanced in this Budget. The strategic fleet will be established through a pilot program with three vessels. Applications to participate in the pilot will open later this year with the first vessels expected to be operational as quickly as possible. The strategic fleet will provide Australia with additional capability to respond to disasters and disruption”.
And, of course, back in the 2022-2023 Budget, the Federal Government provided $6.3m to establish the Strategic Fleet Taskforce to provide advice (some of which hasn’t been published including the various consultants’ reports) on the establishment of the strategic fleet of vessels to “secure ongoing access to fuel and other essential import”.
So at least AUD$35 million has been committed so far. Plus an unknown amount for the Strategic Fleet Pilot Program in the contingency reserve…
This Strategic Fleet is looking very expensive already and that’s before anyone has sailed a single tonne-km of cargo.
