Maxine McKew (Bennelong, Australian Labor Party, Parliamentary Secretary for Infrastructure, Transport, Regional Development and Local Government) Share this | Hansard source

I thank the Leader of the Nationals for his comments. Certainly the bulk of those comments only go to prove just how important this bill is, not the matter of trivia that he referred to in his opening comments. I also thank the Leader of the Nationals for the gratuitous lecture about how the government is organising aviation policy. I would have thought that to be lectured about the management of business in this of all weeks was truly remarkable, but I always stand to be surprised. The Australian government will release the aviation paper soon. The Leader of the Nationals knows this. It will be a comprehensive document. The government has received something like 500 submissions from industry and the community in the development of what will be Australia’s first ever national aviation policy, and I look forward to the comments of the Leader of the Nationals on that paper.

But, as to this bill, the government has a specific role in relation to transport and supply-chain security. The Office of Transport Security in the department regulates the transport security industry to minimise the risk of unlawful interference that could result in catastrophic consequences for an aircraft from an improvised explosive device in cargo. As has been said, the security of air cargo is absolutely critical to ensure Australia’s compliance with the Convention on International Civil Aviation and also to ensure that we meet the security requirements of key trading partners such as the United States and the European Union.

Approximately 80 per cent of international air cargo is carried on passenger aircraft, and total air cargo exports for Australia in 2008 were valued at $31 billion. Air cargo is mostly lightweight, high-value and requiring urgent delivery. To meet customer demands, the air cargo industry’s ability to quickly and securely transport goods and services domestically and internationally is crucial in today’s competitive economy.

The air cargo industry is a diverse and multimodal environment. The handling and processing of air cargo involves a complex web of physical movements by a large number of individuals and organisations. Most air cargo is handled by multiple operators and passes through several consolidation points before it is loaded onto an aircraft. Factors such as the volume and the time-critical nature of such cargo, the number and mixed responsibilities of air cargo handlers, as has been stated, and the physical constraints on processing cargo all impact on the flow of goods at various stages through the supply chain. The government believes that better security checking earlier in the supply chain, when the goods are in a less consolidated state and more easily unpacked and scrutinised, is the most effective and efficient way to manage security. So I am pleased that there is bipartisan support for what is obviously a sensible approach.

The bill contains six key amendments to the Aviation Transport Security Act 2004, to expand the regulatory scope for supply chain security by the Office of Transport Security, Australia’s aviation security regulator. Firstly, the bill will expand the definition of ‘cargo’ to include circumstances where cargo is reasonably likely to be transported by aircraft. Currently, cargo is defined more narrowly, limiting the point at which those security measures are applied. The bill and subsequent regulations will ensure all cargo likely to be transported by aircraft is dealt with by parties who are regulated and obliged to apply security measures at each stage.

The second amendment will expand the scope of industry participants who may certify cargo, through a revised definition of the term ‘certified’. Currently, cargo can only be certified by aircraft operators. So the revised definition will allow certification of cargo by regulated air cargo agents, accredited air cargo agents and aircraft operators. This amendment will allow an expanded range of industry participants to clear cargo. Thirdly, the bill will allow for regulations that will prescribe the circumstances in which cargo may be certified. The fourth amendment in the bill will give the secretary of the department the power to issue a written notice specifying the circumstances in which cargo may be certified. That will allow for the system to be more flexible and responsive to technological advancements and to international obligations. The fifth amendment will introduce a transitional provision for transport security programs to ensure consistency with the provisions of this bill. And the final amendment will preserve the existing regulations until such time as new regulations take effect.

So, overall, this bill and its regulations will ensure that when a parcel gets to the airport there will be a clear paper trail assuring the person who loads the cargo that it has been security cleared. So the amendments will provide the foundations for a whole-of-supply-chain security system which is sufficiently flexible that it can be adapted in line with new technology and changes in the level of threat.

Question agreed to.

Bill read a second time.

Ordered that this bill be reported to the House without amendment.

See this speech in context