Steve Irons (Swan, Liberal Party) Share this | Hansard source

I rise today to discuss the Aviation Transport Security Amendment (Cargo) Bill 2015, the changes it proposes and its importance to the industry. I thank the member for Forrest for her contribution. As Western Australians we spend a lot of time at airports and travelling, so the security of airports and air cargo is very important to us and all other aviation travellers around the world. It is about knowing that the cargo in the planes we travel on is secure and safe and does not pose any threat.

The government has an ongoing and solid commitment to the safety and security of Australia's interests. We have developed a strong history of improving and maintaining Australia's international trade relationships and prospects. Although this bill is about safety and security, it also has a strong commitment to the economy, which is important to Australia because we are such an isolated country. Having an airport in my own electorate, I know how important it is to the economy in Western Australia. That is why we have seen this government continue to fund the Gateway upgrade. I see the former assistant minister for infrastructure is here. He was an important part of that and has visited the particular area many times. He knew how important it was to continue with that Gateway upgrade. The fact that we were able to do it without a mining tax was a credit to the government and the budget process that it put together to make sure that it continued the important work for the infrastructure around the Perth Airport.

The Aviation Transport Security Amendment (Cargo) Bill 2015 is another step towards this and also ensures Australia's cargo security processes conform to international standards. I would like to provide the House with a brief history of Australia's air cargo security. Since 1996, we have had a number of arrangements in place to regulate and maintain the security of goods being transported as air cargo. In 2006, the Accredited Air Cargo Agent was established. This scheme provided more flexibility in the regulatory framework for any persons involved in the handling or transport arrangements for air cargo. However, since then, international law has continued to evolve and we need to adapt our legislation to ensure we remain compatible with international trade partners.

The bill amends the Aviation Transport Security Act 2004 by developing a known consignor and a regulated agent and ensures our laws are consistent with Australia's obligations under annex 17 of the Chicago convention. Australia's airfreight export to the US is worth $4.8 billion. Despite international airfreight comprising 0.1 per cent of Australia's total merchandise trade by volume, it makes up more than 21 per cent of Australia's total trade by market value.

Just to support those figures, last week the committee I am involved with visited Melbourne Airport's cargo area. The staff spoke about 32 million passengers a year coming through there and also the fact that over 90 million packages arrive in Australia every year, which makes it very difficult to screen them. We were lucky enough to see a screening process performed. During that process some illegal substances coming into Australia were picked up. That is how important the screening process is in continuing to make sure that our security and safety is supported.

Over the next five years alone, Australia's outbound international airfreight is expected to increase at an annual rate of 4.1 per cent. It is a significant section of our trade market and now, following the implementation of this bill, will continue to function without disruption. The bill effectively establishes a regulatory framework which safeguards against unauthorised interference. It achieves this by imposing a number of obligations or requirements that need to be met by persons involved in or engaged with civil aviation related processes.

United States law requires 100 per cent of all air cargo on passenger flights to be examined at piece level. As we heard the member for Hughes explain before, that means that every carton, no matter whether it is sealed or part of a group, has to be taken apart and, regardless of weight or size, physically inspected or scanned by technology prior to being loaded on an aircraft bound for the United States. In a recent evaluation of Australia's air cargo security, the US found our arrangements fell short and did not meet the standards they require. It is imperative that we take urgent action to ensure this industry and its role in our economy are not interrupted.

Due to Australia's unique geography and the long distances between us and our trading partners, the air cargo industry remains a vital component of the broader industry. Small, medium and large businesses Australia-wide that are exporting to the US cover multiple industries and commodities, all of which will be impacted on greatly if these amendments are not implemented. Many exporting businesses across Australia would find significant difficulties in finding alternative routes to not only the US but other states that will require stricter regulation of air cargo security in the future. This would come at a detrimental cost to Australian businesses and, in turn, the Australian economy.

Another area of cost could be that of Australia's national security. The United States 9/11 act passed in 2007 saw the implementation of security screening on all air cargo carried domestically on passenger aircraft. In 2010, these requirements were extended to all international air cargo coming into the US. However, Australia was granted some lenience, allowing our exporters to operate in line with the air cargo security framework I mentioned previously. In 2014, the US re-evaluated its security arrangements for US-bound air cargo, and recommendations were made for all pieces to be examined. It is in response to these changes that these amendments are necessary. Also last year, the department, in consultation with stakeholders and intelligence agencies, prepared a security risk assessment of export air cargo in Australia and found that it could be a possible target.

In the current security climate, the use of improvised explosive devices—IEDs—is not unlikely. To prevent this and to further strengthen existing security measures, the amendments proposed in this bill are essential. The minister and his department have provided a two-year time frame in the amendments for the implementation of all changes. This will allow all parties involved in the industry or affected by the changes adequate time to adopt the new security measures outlined in this bill and, in turn, conform to the international standards required. The government has also secured a bilateral agreement with the US that will see our national cargo security program extended until 2017, effectively allowing transition to these arrangements without disruption.

The two-part strategy, as previously discussed by the minister, will see approved businesses given the ability to examine air cargo off airport. This element of the bill is already in the process of being implemented and, by all accounts, is working effectively. This process is legally recognised under the Aviation Transport Security Regulations 2005. All cargo examined through this process will not be subject to any further examination at cargo terminals at Australian airports.

The second, and perhaps the most important, element of the amendment bill is the development of a known consignor scheme under the Aviation Transport Security Act 2004. The amendment bill also introduces a definition of a 'known consignor'. For the benefit of the House, the known consignor scheme is an internationally recognised method of meeting air cargo security requirements. At the core of this scheme is the security of goods from the earliest points in the supply chain right up to their loading onto aircrafts. It is an international alternative to using X-ray technologies and the like to secure air cargo from interference.

This scheme effectively shifts the emphasis for practical implementation of security to the originator of the goods—that is, the shipper—very much like the trusted trader schemes that go on around the world. All goods are required to be produced, packaged and transported in a manner that ensures their security from unlawful interference from the point of origin and through every step until their delivery. Leading on from this, the amendments in this bill introduce an avoidance of doubt provision. In short, this will allow cargo to be opened or unpacked as part of the examination process. It is a clarification to the original bill and will ensure that it functions in line with the government's initial policy intention.

Not only will these amendments align Australia's air cargo security with international standards but they will also allow for a much more effective and highly efficient process for the industry and associated parties. They will also ensure that Australia is equipped to deal with emerging security risks in this particular industry. As mentioned previously, the amendments will see that our air cargo security arrangements are consistent with international standards under the Convention on International Civil Aviation. Not only will they ensure that our laws conform to US requirements; they will anticipate requirements for other current and prospective trading partners. The amendments will effectively ensure continued and stable access to international markets and allow Australia to maintain its global competitiveness. Again, this is fundamental to the maintenance and growth of the industry, and it is another example of this government's commitment to furthering international trade and economic growth.

The Transport Security Administration of the United States has clearly outlined that it will not accept any air cargo that has not been subject to screening at piece level. The measures outlined in the bill are the most effective way possible to ensure that we conform to these requirements. I would like to see these amendments implemented in full to ensure the industry continues to meet international requirements and sees Australia at the forefront of air cargo security.

I am confident that the two-year time frame suggested by the minister will provide ample time for a transitionary period and encourage all parties to do what they can to adhere to the move towards international standards. I would like to thank the minister and his department for their efforts in the development of this amendment bill, and also, particularly, the shadow minister for his support. I support the proposed changes, and I am certain they will be of great benefit to the industry and hold us in good stead as a long-term, international trade partner.

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