It is disappointing that the Shipping Legislation Amendment Bill, aimed at improving the efficiency of domestic trade flows, reducing import substitution and protecting Australian jobs in the manufacturing and primary production sectors, failed to pass the Senate yesterday.
Shipping Australia has continued to call for an end to political self-interest and point scoring, and urged Senators to act in the best interest of all Australians and pass the Bill. Unfortunately, this outcome is only a victory for union minority lobby groups and a reminder of their disproportional power.
Even Senators speaking against the Bill recognised that the existing Coastal Trading Act is ludicrously unwieldy and inhibits effective movement of domestic cargo by sea.
The main argument against the Bill was that it puts Australian blue-water seagoing jobs at risk but, as the Senate Committee report found, “Failing to pass the Bill will not change the course of Australia’s coastal shipping industry. Its slow decline is likely to continue…” In other words, the jobs will be lost anyway, along with all those that could be saved.
“On the other hand passing the Bill is likely to enable Australian producers to access cheaper, more flexible and more responsive options for transport”, the report continued.
The existing Coastal Trading Act is so complicated and unwieldy that the volumes of domestic freight moved by sea continue to fall, while Australia’s freight task increases. This is bad for the environment, bad for jobs, bad for manufacturers and consumers, and bad for the economy.
So despite this setback the urgency for change remains.
Australia is a big country that needs effective coastal shipping legislation which will allow the efficient movement of coastal cargo by sea at a cost comparable with foreign imports, otherwise import substitution will prevail and Australian jobs will continue to be lost.
Shipping Australia urges the Government to make it a priority to continue its efforts to change coastal shipping legislation, for the good of Australia.
Editor’s note:
For additional information contact Rod Nairn, chief executive officer on 0449 902 457.
Shipping Australia is a peak national shipping association comprising 36 member shipping lines and shipping agents that would be involved with over 70 per cent of Australia’s container and car trade, over 60 per cent of our break bulk and bulk trades, and significant cruise ship and tug operations
