Michael McCormack (Riverina, National Party, Leader of the Nationals) Share this | Hansard source

I move:

That this bill be now read a second time.

This bill forms part of the government's commitment to protect the rights and entitlements of the Australian flying public and provides greater certainty for air carriers.

In aviation, accidents resulting in death, injury or loss are rare. However, as with any industry, accidents can occur, and it is important to ensure there are appropriate and equitable compensation arrangements in place when they do.

Suitable liability and insurance arrangements facilitate the timely resolution of liability issues and minimise the risk of protracted litigation for both airlines and victims on those rare occasions when things go wrong.

Dedicated aviation liability arrangements are implemented in most countries in recognition of the unique risks associated with civil aviation and the complex task of awarding damages to passengers under civil liability frameworks.

Australia has implemented a strict liability system for domestic travel that imposes liability on the carrier regardless of any fault, negligence or intention; while providing a cap on the maximum amount the carrier will be liable for.

The system also applies to the small number of international flights that are not covered by an international agreement on airline liability such as the 1999 Montreal convention.

The framework simplifies the claims process for victims and minimises complex litigation. This structure reflects the responsibility placed on carriers and the high standard of systems and controls needed to ensure the safety of passengers and third parties.

These liability limits and associated insurance requirements need to be increased to ensure they keep up with inflation and continue to meet community expectations.

This bill will increase the amount of mandatory insurance carriers are required to obtain.

The revised insurance requirement will match the increase to the liability cap which was implemented when the Civil Aviation (Carriers' Liability) Regulations 2019 came into effect on 1 October 2019, with the revised liability figures to also be included in the principle act.

The bill also includes a series of more technical amendments.

Expanded regulation-making powers will ensure that the quantum of mandatory insurance can be increased by regulation.

The new regulation-making powers will also provide the ability to ensure that the liability caps and required insurance amounts can be increased as appropriate, more efficiently, potentially through an automatic indexation arrangement. The government will consult stakeholders further before finalising a mechanism in this regard.

The new regulation-making powers will also provide the ability to establish a mechanism to expand the type of risks that carriers are required to insure, to potentially include so called 'war risks'. Again, the government will consult further before expanding the scope of any mandatory insurance requirements.

Another technical amendment clarifies that a carrier, and servants and agents of the carrier, share the same scope of liability. This amendment reflects suggestions from stakeholders that it was appropriate to provide additional clarity on this point.

Stakeholders have also proposed a range of further technical amendments to the Civil Aviation (Carriers' Liability) Act 1959 on issues such as a right of contribution and the process by which damages are assessed.

The government is intending to consult further on these and other issues.

In summary, the amendments in this bill will assist to further protect the rights and entitlements of the Australian public, and the carriers involved in or affected by air accidents.

I commend the bill.

Debate adjourned.

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