Darren Cheeseman (Corangamite, Australian Labor Party) Share this | Hansard source

I am pleased to be one of the first speakers on the Aviation Legislation Amendment (International Airline Licences and Carriers’ Liability Insurance) Bill 2008. This is obviously an important bill for the future protection of standards in airline licensing and for improving insurance compliance issues, but it is also an important bill in that it continues to build a regulatory regime that creates a stable and secure environment for operators in the industry. This bill also gives me the opportunity to talk about the establishment of Avalon as a future international airport site and how important this is to the future of my region. But I will get to that later.

Firstly, the thrust of the bill, the direction of the bill, is about maintaining Australia’s reputation for having the safest, best regulated and best quality airline industry in the world. Mr Deputy Speaker, it probably would not surprise you if I said that there was often a lot of hyperbole in this place. There have been times when there has been an overstatement or two, but it is not an overstatement to say that Australia does have the reputation for the safest airline industry in the world, and the importance of that reputation cannot be overstated. Just on this note, I cannot let the moment go without mentioning what seems to be a worrying spate of recent incidents with an important Australian airline. I am, like many Australians, watching this very closely. I am sure the airline is watching this closely and checking its systems, and I hope this run of incidents does not continue. However, that matter aside, this amendment bill is another step in ensuring that we keep the mantle of having the world’s safest airline and the world’s best airline industry.

The Aviation Legislation Amendment (International Airline Licences and Carriers’ Liability Insurance) Bill 2008 will improve two regulatory programs related to the aviation industry. It will amend the system of international airline licences so that the conditions attached to those licences can be standardised and the government’s capacity to audit compliance can be enhanced. It will also amend Australia’s system of mandatory carriers’ liability insurance to streamline the administrative processes and grant the civil aviation authority, CASA, improved powers to audit and enforce compliance with this scheme.

There are two important decisions. Having standardised, agreed licence conditions which are of a high standard is a big step forward in the airline industry. However, having standard conditions for licences is one thing; the real test is enforcement of those conditions. How many times have we seen good laws and good regulation become useless laws and useless regulation because of a lack of compliance? I have seen that a lot in my lifetime, particularly in my time on council, and it is certainly something that I look forward to ensuring does not happen in this place. Another important purpose of this amendment is to make sure that there is not another example of that. This amendment actually improves the capacity of the government to audit international airline licences so that compliance is improved. In my view, that is extremely important. It is absolutely important in this industry that we have rigorous and uncompromising compliance regimes.

This amendment also deals with insurance. Insurance is an integral part of the airline industry. Insurance is a significant cost to the industry. The Civil Aviation (Carriers’ Liability) Act 1959, the carriers’ liability act, requires carriers to maintain minimum levels of insurance to protect passengers in the event of an accident. The scheme is supplemented by provisions in the Civil Aviation Act 1988 which allow CASA to enforce the requirements as a part of their management of safety issues via the air operator certificate process. This bill improves the ability of CASA to proactively enforce insurance requirements for air carriers. Importantly, for operators, the bill also streamlines administrative processes.

Going into a bit of detail on this bill, it is important to know that the system of international airline licences is established under the Air Navigation Act 1920 and the regulations that go with it. International airline licences make sure that we comply with bilateral air service agreements and arrangements. These are important agreements between Australia and our international aviation partners. International airline licences must be compliant with these agreements because they are effectively final checking mechanisms of various safety and security protocols that must be in place before commencement of operations.

After consultation with the industry, it was clear that a number of technical problems exist with the existing administrative framework for international airline licences. To give you just one example: under the current provisions of airline licensing, once a licence is granted it lasts forever unless an airline contravenes a provision in the Air Navigation Act 1920, the Air Navigation Regulations 1947 or the conditions in the licence itself. Today licences exist for airlines that were long ago defunct. The bill will move the entire regulatory framework for international airline licences into the Air Navigation Regulations 1947 and give the regulations the capacity to deal with the granting, variation, suspension and cancellation of international airline licences by the security of the Department of Infrastructure, Transport, Regional Development and Local Government. The regulations will then be updated to rectify the current administrative deficiencies in the international airline licences system and enhance auditing processes. I think this builds on an already strong regulatory system for our airlines; it improves them even more. The strength and robustness that our airline licensing and regulatory system generates generally is important when establishing new airport facilities.

I want to take this opportunity to talk about a very important aviation licensing issue in the region of which my electorate forms a part. I also note that the federal member for Corio is here. I think the strength of the airline regulatory system overall bodes well for the ultimate establishment of Avalon Airport, not just as a domestic airport but ultimately as one of Australia’s most important international airports and a very important airport for my region. It is very important that these sorts of regulatory systems are in place so that people have the confidence in new and establishing airports like Avalon. I do believe that one day we will see Avalon as an international airport. I note that the Australian government, the Rudd Labor government, has no objection in principle to the establishment of an international terminal at Avalon Airport and encourages new international services.

I would like to put on record my sentiments about Avalon and its importance to the region. Firstly, I want to say this: clearly if Avalon went international the tourism industry in my region would go to a whole new level. In short, tourism would go ballistic. The boost to existing levels of tourism in the city of Geelong, the Otways and of course the Great Ocean Road would be just huge. Job numbers and the range of jobs in tourism would just explode. Tourism would also explode across the Bellarine Peninsula, the Surf Coast, Colac Otways and of course Geelong itself. Local jobs for tens of thousands of people moving into the area are very important. That is just the most obvious impact.

Of greater significance again would be the broader industry benefits, and those are the real key. Geelong is currently at the start of a major industry transition process. We are diversifying from traditional manufacturing and looking to future industries. There is a wide range of industry groups, academics and companies working on this transition. The greater Geelong region today has its eyes firmly focused on the future. We are looking at high-tech manufacturing, advanced health research and bioindustries. An international airport at Avalon is absolutely vital in assisting the region in diversifying from traditional manufacturing and to high technology and high-skill industries in the future. An international airport at Avalon would boost all these industries. An international airport would bring specialist service skills in itself. It would also give us the ability to bring in products just in time for other industries and to export products more efficiently. It could spawn new aquaculture or other food product industries, for example, and our region is doing a lot of work on that. It would allow visiting experts and delegations to land on our doorstep in a fully modern city.

The establishment of an international airport at Avalon would benefit our region immensely, and I am 100 per cent behind that push. I also understand the caution that is needed to get it right. An international airport at Avalon would mean moving Australia’s border to our very own doorstep. Avalon would become Australia’s border. There are very important issues of security, quarantine and customs. This would require a very thorough major development plan. It would require not just a good licensing and airline insurance system but an airport plan that would serve us all well for decades to come. As I understand it, the landowner of Avalon, the Australian Department of Defence, would be pleased to receive a fresh major development plan for consideration. I also understand Avalon are keen for the development of international services from the airport and will be submitting a new proposal for the consideration of Defence, hopefully in the not-too-distant future. I hope very much for the sake of the region, for the future of the region, that this goes ahead.

This bill that we are considering today, which is about the integrity of our airline licensing system, gives me confidence. It gives me confidence that we have the regulatory structures in place to protect air travellers, protect operators and one day allow the people of Geelong to fly overseas from Avalon with all of the confidence in the world of making it there and back safely. It also gives me confidence that the local airline industry in our region can one day soon have international carrying capacity, bringing new industries to our region and exporting our products to the world. Avalon is very important for our future in our region. I commend this bill to the House.

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