Warren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | Hansard source

I thank all members who have contributed to this debate. It is a very important issue. While I welcome the bipartisan support for the legislation and recognise that it is, therefore, uncontroversial, it is important. Whilst I wish that we were not in a position where it has become necessary for us to further update security requirements, in this particular instance, to maintain our trade with the United States, it is clearly essential that we accept this legislation and the burden on industry that inevitably results from regulation of this nature.

The Aviation Transport Security Amendment (Cargo) Bill 2015 will ensure that Australian air cargo meets United States security requirements for air cargo exports to the US. The United States requires, by law, that all airlines transporting cargo to the US on passenger flights must examine 100 per cent of that air cargo at piece level. This means that every individual box, carton or other item in a shipment must be examined by technology or physically inspected before it is loaded onto a US-bound aircraft.

The US has recently re-evaluated Australia's air cargo security arrangements and determined that they do not meet US requirements. The amendments proposed in the bill support the government's strategy to meet the US security requirements, a strategy that will be implemented in partnership with industry. The strategy has two elements, allowing exporters to choose the most effective method for their businesses: off-airport examination of cargo by approved freight-forwarding businesses, and the establishment of a known consignor scheme that export businesses can join.

The first part of the strategy is already being implemented with a number of businesses examining cargo at piece level by X-ray before it gets to the airport cargo terminal, removing the need for screening at the airport. The second part is supported by the amendments in the bill. The amendments create the legal authority for the establishment of the known consignor scheme and clarify what is meant by cargo receiving clearance and being cleared for carriage through a secure supply chain. The known consignor scheme is an internationally recognised method of meeting air cargo security requirements, which focuses on ensuring the security of goods from early in the supply chain through to their ultimate loading onto an aircraft. It provides an alternative means of securing air cargo from unlawful interference compared to examinations using X-ray or other technology.

The amendments mean that Australia's $4.8 billion worth of airfreight exports to the United States can continue without disruption. The amendments also mean that Australia's air cargo security arrangements are consistent with international standards under the Chicago Convention. Therefore, the government's strategy not only meets US requirements but will meet any anticipated requirements of our trading partners. The government has an ongoing commitment to ensuring the safety and security of Australians and Australian interests. The government is also committed to maintaining and growing Australia's international trade, and this bill supports this commitment.

Again, I thank those who contributed to the debate for their contributions in relation to the importance of Australia's trade not only with the United States but around the world. While the vast majority of our trade and our freight is naturally carried by ship because we are an exporter of large volumes of freight, particularly minerals and agricultural products, there is an important and growing industry which relies on freight by air to meet markets in a timely way. This is particularly true in the areas of fruit and vegetables, fish, and other consumables, but it is also important for the supply of sophisticated parts and machinery—the sorts of things that keep business operating in a smooth and efficient way. So it is absolutely essential that we have an airfreight industry that is not only able to deliver on the task in the physical sense but able to meet the international requirements. The US have adopted standards. Those standards are at a level beyond what we have been used to but they are standards which we know we will need to meet in the future, and this legislation provides the framework to enable that to happen. I commend the bill to the House.

Question agreed to.

Bill read a second time.

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