An official consultation has been launched by the Department of Infrastructure, Transport, Regional Development, Communications and the Arts into the Coastal Trading (Revitalising Australian Shipping) Act 2012. The Australian Government appointed Ms Lynelle Briggs (a former public servant) and law Professor Nicholas Gaskell to co-chair the Review of the Act.
The Federal Government considers that the overall effectiveness of the Act needs to be evaluated and that stakeholders have identified a number of areas where the Act is causing inefficiencies, adding costs unnecessarily, not adequately considering impacts of licence decisions, or creating other impediments to the movement of cargo and passengers.
The consultation states that: “The reviewers take the findings and recommendations of the Strategic Fleet Taskforce as their starting point.” The review will consider whether the coastal trading regulatory framework is fit-for-purpose and appropriately supports the strategic fleet.
The Review will be conducted over two phases. Phase 1 will focus on the object of the Act and how it impacts the design, structure and overall functionality of the Act. The first phase will focus on elements of the CTA that do not directly relate to establishing and supporting the strategic fleet.
Phase one
The first phase will consider whether changes to the CTA are required to support a viable and sustainable Australian shipping industry that promotes long-term growth. This includes:
- the maritime industry’s role in Australia’s domestic trade and economic development;
- the effectiveness of the CTA in achieving its intention of revitalising Australian shipping;
- the evolution of Australian industries, coastal trade and the changing demand for shipping since the CTA’s commencement
- whether the current licencing system is fit-for-purpose, including:
- the extent to which General Licence provisions can be improved and streamlined and the associated costs made proportionate to the process;
- whether the current processes for granting Temporary Licences undermine the CTA’s Object;
- whether current decision-making processes for the Minister and their delegate are appropriate;
- whether it meets the operational needs for cargo owners in terms of efficient and flexible movement of their cargoes;
- publication and notification processes including notice in responses, comments by third parties;
- the appropriateness of emergency licence provisions;
- whether reporting requirements can be improved or streamlined;
- licence costs;
- the functionality of the Coastal Trading Licensing System (CTLS);
- the implications of changes to the CTA on seafarer wages;
- the role of the maritime industry in maximising efficient movement of goods within Australia, and supporting an effective and resilient freight and supply chain;
- the treatment of passenger movements and passenger vessels to support Australian tourism and the domestic cruise industry participants;
- Suitability of the exemptions from the CTA;
- the future growth of Australia’s offshore renewable sector and other emerging industries and its likely effect on Australia’s shipping needs; and
- any other relevant matters.
Phase two
The second phase will consider potential reforms to the Act and the likely impacts of those reforms. It will be undertaken as part of a broader post-implementation review of the strategic fleet, consistent with the Taskforce’s recommendation and will focus on assessing whether the CTA appropriately supports the strategic fleet.
- feedback during the process for selecting and operationalising the first strategic fleet vessels;
- whether the CTA appropriately supports strategic fleet vessels and their trade;
- how the legislation could be changed to support the operation and viability of strategic fleet vessels;
- the practicality of recommended amendments to decision making requirements and delegations, and
- the effect of any recommended changes (including any arising out of Phase One) to the CTA on Australia’s shipping industry and onshore industries that rely on shipping services to move cargo and passengers.
A written report will be provided to the Minister for Infrastructure, Transport, Regional Development and Local Government at the conclusion of the Review.
The deadline for submissions Saturday 02 November 2024.
