Federal Government fails to deliver on domestic shipping policy

24/3/04
The Federal Government's 'policy-limbo' when it comes to Australia's shipping industry is blocking the development of an Australian coastal shipping industry.
Speaking in the port city of Albany today, Planning and Infrastructure Minister Alannah MacTiernan said major investments needed to be made to halt the downward spiral that had characterised the industry over recent years.
"Federal Transport Minister John Anderson has made a limited commitment to reviewing some of the impact of Government policy on domestic shipping but it might be a case of too little, too late," Ms MacTiernan said.
"If Australian vessels carried just 20 per cent of our overseas trade, the national fleet would number 500 vessels and not the present 50.
"Enormous spin-off benefits would result in areas right across the economy, including jobs creation in insurance, maritime law and ship finance.
"These are all activities currently exported elsewhere with a very damaging result for balance-of-payments.
"Mr Anderson is simply unprepared to confirm that foreign vessels with third world costs will not continue to be given permits to carry domestic trade."
The Minister said the Australian shipping industry was facing a watershed.
"Old vessels need replacing and an ageing labour-force needs invigorating," Ms MacTiernan said.
The Minister said a major international shipping company, keen to establish a new coastal service between Western Australia and the Eastern States using Australian crews, had recently approached her.
"The company is facing considerable investment to establish this service," she said.
"However, this will only occur against a background of policy certainty - not one of policy limbo, as we have currently.
"They want a commitment that they will not be undermined by the granting of single voyage permits to foreign vessels with third world wage payments and conditions.
"Australia has the largest ocean territory in the world and our sea links are vital to our economy.
"Of what we produce, 80 per cent is exported. Western Australia has half of the country's exports by volume, a quarter by value, three of the top six ports in Australia and nearly of a quarter of the commercial vessel calls.
"The case for a strong domestic shipping policy is well founded, and I would suggest that as WA is the major user of shipping in this country, all State MPs join me in having the Howard Federal Government understand the national importance of this crucial issue."
Minister's office: 9213 6400