Michael McCormack (Riverina, National Party, Parliamentary Secretary to the Minister for Finance) Share this | Hansard source

I would like to thank the member for Grayndler, in his capacity as shadow minister for infrastructure and transport, for his contribution to the debate on the Australian River Co. Limited Bill 2015. The importance of shipping to trade and to our economy means that retaining a viable industry is a must—we all know that. The current coastal trading licensing system has resulted in a substantial increase in the freight rates experienced by shipping users. For example, Bell Bay Aluminium recorded a 63 per cent increase in freight costs in one year.

Mr Albanese interjecting—

Stay and you will hear some really sensible points being made in this. There are around 1,000 extra administration hours per year on the industry to meet the red tape of the scheme, as estimated by the Business Council of Australia. Between 2000 and 2012 shippings' share of national freight fell from 27 per cent to less than 17 per cent. Over the same period the volume of Australian freight grew by 57 per cent. The government is continuing, led on this matter by the Deputy Prime Minister, to consult with industry on plans to implement a more flexible regulatory framework, and that is so very important.

As part of the 2014-15 smaller government budget measure it was announced that Australian River Co. Limited would be wound up. The government's smaller government measures involve the abolition or merger of government bodies, where possible, to eliminate duplication, to remove waste and to streamline government services, thereby reducing the cost of government administration for taxpayers. That is something we all want. This bill demonstrates this government's commitment to its smaller government policy, its smaller government agenda.

The bill will facilitate the transfer of Australian River Co. Limited's assets and liabilities to the Commonwealth, and it provides for the Commonwealth to be the company's successor at law. The bill enables the Australian River Co. Limited's current and future claims and liabilities, including workers compensation, to be managed by the Commonwealth. The date and transfer of Australian River Co. Limited's assets and liabilities to the Commonwealth will be set by proclamation. This will allow time for issues relating to the Australian River Co. Limited's assets and liabilities to be identified and resolved prior to the transfer. Once the transfer has been completed Australian River Co. Limited can begin its voluntary deregistration under the Corporations Act 2001.

I again thank the member for Grayndler for his contribution. With that, I commend the bill to the house.

Question agreed to.

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