Strategy Alarm

A joint parliamentary report into Australia's Maritime Strategy has called on the Federal Government to urgently respond to measures proposed by the Independent Review of Australian Shipping.

The Joint Standing Committee on Foreign Affairs Defence and Trade report tabled in June also calls for maritime policy to be part of a comprehensive national security strategy.

Last September the Independent Review into Australian Shipping (IRAS) chaired by former transport ministers Peter Morris (ALP) and John Sharp (National) warned that promoting cheap foreign shipping on our coast undermined border protection.

In a section on national security, the report A Blueprint for Australian Shipping says:

"International shipping is arguably the weakest link in our national security system. Foreign vessels from all over the world enter Australian waters daily. On board are both people and cargoes that represent a potential risk to Australians."

It also warns that seafarer identification is critical to the ultimate effectiveness of the ISPS (International Ship and Port Security Code).

Peter Morris is outspoken critic of government policy on maritime security.

"It's a sham," he said. "There's no way you can be sure flag of convenience vessels or their crew do not pose a threat. So long as you have corrupt manning agents and widespread fraud these ships are a risk. The sort of threat we are looking at is a foreign vessel coming into Sydney Harbour loaded with explosives hidden in containers or in the hold and simply veering left into the Opera House or the Harbour Bridge. They'd take out the whole of the CBD."

IRAS notes that since November foreign crew must carry a passport as well as a seafarer's identity document. Before a ship enters Australian waters the ship must provide the Department of Immigration and Multicultural and Indigenous Affairs with a list of the names of the crew. This is checked against an alert list to identify any high-risk individuals. If no alert sounds an electronic special purpose visa is automatically issued for the crew.

"The weakness of this system is that it depends on the crew listing being accurate. If for whatever reasons the names on the crew list are not the real names of the crew and the fake names do not trigger an alert, they automatically hold a special purpose visa," Morris said.

"Customs officer inspecting the ship would also find it very difficult to be sure that the people on the list are the people on the vessel. Once initial inspection of the ship is complete, crew are free to go ashore. If they do not return, no one knows unless the ship's masters alert the authorities."

IRAS also points out the security risk foreign ships and their cargo pose.

Customs may inspect the ship in port. But international vessels can remain in Australia and carry out domestic transport services along the coastline under a SVP or CVP for up to three months.

It concludes its chapter on maritime security noting:

"The apparent inconsistency between the Government's policy for coastal shipping, ie to obtain the cheapest priced shipping services by accessing foreign ships, and its policy of strengthening border protection."

IRAS calls for a review of the coastal permit system with tighter restrictions on foreign shipping.

Other recommendations of the report aimed at making Australian shipping more financially viable include:

• more flexible range of skills and trades among ship's crew

• mixed manning whereby Australians would work on ships carrying our exports alongside foreign crew (a matter now subject to talks for the proposed LNG shipments to China)

• the need for an industry forum such as a National Maritime Training Council to progress and enhance career paths and competencies.

• alternative cover under the Seafarers' Rehabilitation and Compensation Act 19992 that reduces costs

• a tonnage tax urgently needed as an alternative to traditional company tax.

The report notes that the domestic shipping task for coastal shipping has declined steadily from 40 per cent to 25 per cent in the past 15 years, with a loss of 24 Australian ships in a decade.

The joint parliamentary committee took the IRAS report seriously. It views with concern that Australia's declining merchant marine and crew could result in the Australian Defence Force being over-reliant on foreign shipping in times of war.

Commodore Alan Robertson said he would like to see as part of our maritime strategy a revival of Australian coastal and international shipping:

The report concluded by noting the vital role merchant shipping has played historically in supporting Australia's defence objectives.

PDF download of the Independent Review into Australian Shipping (IRAS) at

http://asa.com.au/shippingpolicy.asp

A PDF download of the joint parliamentary report into Australia's Maritime Strategy can be found at

http://www.aph.gov.au/house/committee/jfadt/maritime/report.htm