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Urgent Action Needed to protect Australian shipping

26 June 2008

By MUA media release -

New figures exposing the impact of the Howard Government's neglect of the Australian shipping industry highlights the importance of tightening rules for foreign vessels, the Maritime Union of Australia said today.

A government report released today shows the number of Australian vessels servicing the coast fell in 2006/07 below 100 for the first time. The report also shows that the number of voyages by foreign flagged ships carrying Australian coastal cargo jumped by 56.4% in just one year between 2005-06 and 2006-07.

MUA National Secretary Paddy Crumlin said the figures showed that the Howard Government had left Australian shipping facing possible extinction.

"In this context, the MUA welcomes the Rudd Government's announcement today that it will tighten the Guidelines on approving foreign vessels access to Australian coastal cargo.

Transport Minister Anthony Albanese today announced changes to Ministerial Guidelines, which will help close loopholes around the Single Voyage Permit (SVP) system, under which foreign ships apply to carry cargo between Australian ports.

The new Guidelines will enable stakeholders to be on the lookout for abuses which deny Australian licensed ships the right to carry Australian coastal cargo, such as:

- late applications for permits,

- patterns of applications suggesting exporters and foreign ship operators are colluding on the timing of permit applications,

- overstating the size of cargo requirements, and unreasonable conditions (such as the lowest international freight rate).

"The changes will help close the many loopholes that have turned the SVP system into a rubber stamp process, carried on behind closed doors."

Mr Crumlin said that while there was a place for foreign flagged vessels in carrying domestic cargo at peak times, the system had been abused to the point where foreign vessels were taking over domestic routes.

"There are a number of reasons a strong Australian shipping industry is in the national interest - lower freight rates for long haul domestic shippers, Australian seafarers have world best security clearances, are multi-skilled and are the best trained.

"And at a time when the challenges of climate change are forcing us to rethink the way we transport goods, a low-emission shipping industry is good for the nation.

These figures further highlight the need for strong recommendations from the Government's Shipping Inquiry, which is due to report in October.

For further information contact: Paddy Crumlin (MUA) tel. 0418 379 660 or Charlie Stemmer (EMC) on 0423 375 522



For further information

Contact : Maritime Union of Australia
Phone : +61 2 9267 9134
Fax : +61 2 9261 3481
Email : muano@mua.org.au
WWW : http://mua.org.au/


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