Many were surprised that coastal shipping was not a major area of debate in general election last year. The reality is that it is too difficult to explain in an “eight second grab”, the usual time allocated to a topic by the television news. And in our age of influencing voters by Tweets or fake news in Facebook, neither side of politics was willing to take the risk of bringing this important matter into focus.
But that is all behind us, so let’s get on with it.
A bipartisan approach
It’s now time for some sensible bi-partisan changes that will allow international shipping to carry coastal cargo efficiently and sustainably for the benefit of Australian manufacturers, primary producers, and consumers.
More jobs, more efficient and better for the planet
Efficient coastal shipping will create jobs in Australia by reducing import substitution. It will reduce the amount of greenhouse gas produced by inefficient overland transport. It will reduce the demand for road infrastructure spending and reduce road congestion and accidents. Yes it will really save lives. Compelling arguments indeed.
So, here’s my pitch for a simple solution:
- Get rid of the “five-voyage” requirement and the volume variation restrictions from the temporary licensing regime,
- provide a blanket exemption under Ministerial determination (just like for cruise ships greater than 5000 GT) for non-competitive cargoes on the coast, such as break bulk, heavy lift, and container ships with TEU capacity exceeding 2500, and
- remove the application of the Fair Work Act to coastal freight.
What can we do to encourage and develop Australian seafarers?
Let’s consider a simple ‘coastal levy’ per unit of domestic cargo that can be administered and collected in conjunction with the existing freight tax. The revenue from this levy can be used to support placement of cadet deck officers, engineers, and trainee pilots on foreign vessels, to get true blue-water seagoing experience. This is what they need if we truly wish to maintain our maritime expertise.
