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

Before my contribution to this debate was interrupted by question time and all the other events of the day, I was referring to the Maritime Labour Convention and the fact that this bill implements the Maritime Labour Convention into Australia. The Maritime Labour Convention addresses various conditions of employment for seafarers and will put in place a system where ships will be inspected and certified to meet particular standards. I indicated in my earlier remarks that the coalition would not oppose the bill, although we are naturally anxious about some elements of the way in which it will operate.

The shipping industry has raised some legitimate concerns about the practical operation of this scheme. The Australian Shipowners Association has raised concerns about the treatment of cadets and trainees, who under the MLC would be required to have individual sleeping quarters. This may pose a disincentive to vessel operators taking on more cadets, making it more difficult for them to obtain appropriate sea time to gain their qualifications. Additionally, concerns have been raised that the new provisions requiring vessel owners to provide free meals to seafarers on board vessels may mean that they will attract Australian fringe benefits tax, which will significantly increase the cost of providing this service.

It should also be noted that this will be the first time that the Australian Maritime Safety Authority will undertake a social as opposed to a safety function. Under the MLC Australia will be obliged to inspect ships that do not have the required documentation docking at Australian ports. The inspection process is extensive, requiring the inspection of all employment contracts and qualifications for all crew, including the kitchen staff—more bureaucracy from international organisations and an Australian government that believes more paperwork will save the world. The time taken to complete this process could potentially delay cargo leaving Australia's ports and add to the bottlenecks already experienced.

As such, appropriate training and funding will be required to ensure that inspectors are well equipped to undertake the role required of them in a timely manner. The MUA has been pushing for the International Transport Workers Federation to play a role in the inspection process which, if allowed to happen, would be a major concern for industry participants. Additionally, it should be noted that wages and conditions for seafarers will be subsequently stipulated through regulation. The coalition will carefully scrutinise this process to ensure that the requirements are not more onerous than those required to meet the MLC. Traditionally Australia's shipping industry has been uncompetitive internationally because of the higher cost of running an Australian as opposed to a foreign flagged vessel. Australian ships are notorious for having high manning levels and wage structures compared with the rest of the world. For example, at the moment a typical Australian container ship pays $4.06 million in crew costs per year compared to a foreign ship, which pays just $1.65 million in crew costs.

I turn to the practical concerns of the bill. It was referred to the House of Representatives Standing Committee on Infrastructure and Communications for consideration. The committee recently tabled its report addressing each of the industry concerns. The committee was assured by the Department of Infrastructure and Transport that it was working with industry to ensure a seamless transition to the MLC provisions that would not unfairly disadvantage the Australian shipping industry and undermine its viability. Specifically in relation to the requirement for single berths for seafarer cadets, AMSA have advised that they are actively working to address this issue and will be proposing subordinate legislation on this matter.

It is clear that should the MLC not be ratified in Australia and it comes into force internationally as expected, our shipping industry will be at a significant disadvantage relative to other vessels from countries that have ratified the MLC. This would have the potential to significantly affect Australian trade. The Australian Shipowners Association, Shipping Australia and the Maritime Union of Australia have all publicly expressed their desire for the MLC to be ratified. Additionally, state and territory governments have been consulted and have raised no objection to the ratification of the MLC.

In summary, the coalition will not oppose the ratification of the MLC. However, in doing so we note the practical concerns raised by industry participants and will continue to monitor this process to ensure that they are addressed. We look forward to being given the opportunity to scrutinise the regulations to be implemented in due course.

The second part of the legislation, schedule 1 part 2 of the bill, amends the Navigation Act 1912 in relation to vessel tracking services. It amends the definition of 'vessel tracking service' to refer to guidelines adopted by the International Maritime Organisation and any amendment to those guidelines. It also amends the regulation-making power in the Navigation Act to specifically provide for the making of regulations relating to vessel-tracking services. These amendments will provide legal backing for the extension, from 1 July 2011, of the current vessel-tracking services to the southern part of the Great Barrier Reef in response to the grounding of the Shen Neng 1 on the Great Barrier Reef in April 2010. The amendments made in schedule 1 part 2 of the bill are non-controversial and the coalition will not oppose them.

However, I was concerned by reports yesterday that at the same time the government is expanding vessel tracking on the Great Barrier Reef, it is casting aside seafarer expertise when it comes to charting a safe course through our territorial waters of the Torres Strait, exposing the northern tip of the Great Barrier Reef to potential irrevocable damage. Revelations by WikiLeaks indicated that Labor had quietly watered down shipping safeguards in the Torres Strait to no longer require shipping pilots to be on board large vessels such as oil, chemical and liquefied gas tankers navigating these treacherous waters.

The previous coalition government insisted that vessels entering the Torres Strait be manned by pilots. I was pleased when the Minister for Infrastructure and Transport came into the House yesterday to give an assurance that Labor would not be putting our marine environment at risk, had not bowed to pressure from overseas, and the reports in the newspapers were incorrect. It is important that we all adopt high standards when it comes to protecting our marine environment and the assurances of the minister were most welcome. The grounding of the Shen Neng 1 off Rockhampton in April 2010 tore a three-kilometre scar in the Great Barrier Reef and the oil slick covered two nautical miles. No doubt the reef will take some years to recover. While I think it is true that the reef is more resilient than many people think, we do not want any damage, lasting or short term, to this precious natural asset. When you think of the long-term damage that can be inflicted on such a pristine and unique marine environment as the Barrier Reef, nothing should be left to chance. Therefore the requirements to fit these vessel-tracking devices on vessels passing through this area has merit.

As I indicated earlier, the coalition will not be opposing the bill. We will monitor its implementation to ensure that the Australian shipping industry is not disadvantaged. In concert with some of the proposed reforms being talked about at the present time, the bill can play an important role in the future of Australia's international trade.

Julie Owens (Parramatta, Australian Labor Party) Share this | Link to this | Hansard source

I am pleased to speak on the Navigation Amendment Bill 2011, which proposes to amend the Navigation Act 1912 to ensure consistency between the act and the Maritime Labour Convention in order to provide for the implementation of that convention in Australia. The convention is part of a range of conventions developed by the International Maritime Organisation aimed at improving the safety of ships at sea. There are four pillars, and this convention is the fourth. The first three—safety of life at sea, prevention of pollution from ships, and the standards of training certification and watchkeeping—are already in place.

This fourth pillar is often referred to as the seafarers' bill of rights and it can be described as an objective benchmark to ensure that people working and living on the ships that ply international waters have decent working conditions. The convention deals with the minimum requirements for seafarers to work on a ship: conditions of employment; accommodation, recreational facilities, food and catering; health protection, medical care, welfare and social security protection; and compliance and enforcement. As we consider this bill today we should understand that there are people currently working on ships around the world in some of the worst working conditions we would find anywhere. I know from many conversations with colleagues and friends in the Maritime Union of Australia their concern for the conditions that they find some of their international colleagues working in, even in our own waters here in Australia.

The Maritime Labour Convention will come into effect when at least 30 member states, accounting for 33 per cent of the world's gross tonnage, will have signed up for the convention. Once that has been achieved, the convention will come into force some 12 months later. It is worth considering who currently has ratified the convention. There are currently 12 member states, which account for 48 per cent of the world's gross tonnage of ships. They are the Bahamas, Bosnia, Bulgaria, Canada, Croatia, Liberia, the Marshall Islands, Norway, Panama, St Vincent and the Grenadines, Spain and Switzerland. The convention applies to all ships engaged in commercial activity but excludes traditional-build vessels such as fishing vessels and warship or naval auxiliaries. Ships of 500 GT or over are required to be certified and must carry a maritime labour certificate as well as a declaration of maritime labour compliance. Ships below 500 GT are subject to inspection at intervals not exceeding three years.

It is important that Australia ratifies this convention because once it comes into place Australian ships will be subject to inspection in any country that has ratified the convention and will be subject to possible detention if they do not meet the minimum standards of the new convention. The reality for Australia is that ratifying the convention will not result in significant changes for us, because Australian ships generally already provide good working conditions. But the passage of this bill will help to ensure that the good working conditions are maintained on Australian ships and that seafarers working on other ships that enter Australian ports will have good working conditions. It will also have the effect of reducing the likelihood of accidents that may result in pollution, damage or loss of life or injury to seafarers.

The Maritime Labour Convention modernises a wide range of existing international labour standards that go back over eight decades. There has been considerable work done to bring us to this point. It modernises a wide range of existing standards and consolidates and updates more than 60 earlier ILO conventions and recommendations. It sets minimum requirements for seafarers to work on ships. It addresses conditions of employment, accommodation, recreational facilities, food and catering. It promotes compliance by operators and owners of ships by giving government sufficient flexibility to implement the convention's requirements in a manner best adapted to their individual laws and practices. It strengthens enforcement mechanisms at all levels, including provisions for complaint procedures to be made available to seafarers, for shipowners' and masters' supervision of conditions on their ship, the flag states' jurisdiction and control over their ships, and port state control inspections of foreign ships. So it is quite a comprehensive convention and, coming on the top of the first three pillars, makes a substantial difference to the safety of ships and their crews at sea.

This is, of course, an important area for us all. In Australia, shipping carries 99 per cent of our trade by volume. We are a very large part of the entire world's seaborne trade. In fact, Australia's shipping task makes up 10 per cent of the entire world's seaborne trade. If we expect cargo to be transported efficiently around the world without loss of life and vessels, and without pollution, injury or death, we need first-class, qualified world shipping services. We cannot expect seafarers who are subject to Third World living conditions—and many are—to deliver a First World shipping service.

I am pleased to say that the implementation of the convention is strongly supported by all sectors of the maritime industry. The unions and the employer associations are well and truly behind this convention and have expressed their support. You can tell the strength of the support for this convention by the nature of the tripartite Australian delegation which participated in the meetings leading up to the adoption of the convention. It included representatives of the Australian Shipowners Association as well as Australian government officials and representatives of the Maritime Union of Australia. The composition of that delegation reflects the unique bargaining arrangements for International Labour Organisation meetings, and it is great to see the various elements of the maritime industry coming together for the betterment of international shipping.

The convention will apply in Australia to ships of 200 gross tonnes and over, whether they are engaged on international voyages or engaged domestically. Those in excess of 500 gross tonnes will have to carry documentation of compliance on their voyages. Those under that tonnage will be subject to inspection every three years. The maritime labour certificate will be issued after a ship has been inspected and found to meet the requirements.

This is a comprehensive convention which will make a substantial difference for seafarers and for the international shipping trade. I know that my friends and colleagues in the Maritime Union of Australia have for many years been concerned about the conditions that they see in some of their seafaring colleagues' ships around the world and in our own waters, and I join with them in satisfaction that, finally, this convention will come into play and make a real difference around the world and in our own waters. I commend the bill to the House.

Deborah O'Neill (Robertson, Australian Labor Party) Share this | Link to this | Hansard source

I rise to speak in support of the Navigation Amendment Bill 2011. This bill implements our international obligations under the Maritime Labour Convention. As a Labor member of this parliament, I will always fight for the working conditions of all Australian workers. We need to think about the working conditions of our seafarers when we consider safety in Australian workplaces. That is what this bill does. After all, our seafarers working on ships engaged in commercial activities play an indispensable role in our trading economy. Because of this, it is vital that their working conditions are in line with international standards and practices. This bill aims to do this.

The Maritime Labor Convention is often referred to as 'the seafarers bill of rights'. It was established in 2006 by the International Labour Organisation, and it provides comprehensive rights and protection for the world's 1.2 million seafarers. Indeed, as stated by the International Labour Organisation, the shipping industry is the world's first genuinely global industry and one of its most economically important. It is estimated that 90 per cent of trade is carried on ships, and seafarers are an integral part of the international economic and trade system.

I want to acknowledge the speech made by the Minister for Infrastructure and Transport yesterday in which he outlined the reform package Stronger Shipping for a Stronger Economy. The aim of this important reform is to correct the lack of action in the shipping industry in the Howard years. There are four key elements to the reform, but the establishment of the Maritime Workforce Development Forum is one of those that is critical to progressing key maritime skills and training priorities. That is an element that is clearly linked to the development of a workforce ready to take advantage of opportunities provided by our burgeoning export market and increased domestic transport task.

What truth Edmund Barton spoken when he said, in the lead-up to the Australian Federation, we are:

… a nation for a continent and a continent for a nation.

As the largest island continent on earth, our trading industries and national prosperity have always been dependent on the shipping industry.

Because of the global nature of the shipping industry, the International Labour Organisation rightly determined that there should be international standards, regulations and principles applicable to the entire industry. Seafarers on Australian ships generally do have good working conditions, and the implementation of the Maritime Labour Convention will not result in a significant change for them. But that is a reflection of our long history as a trading nation engaged in the maritime industry.

One of the things that I have the pleasure of doing every year in my role as the member for Robertson is attending a memorial service for people from the merchant navy, people who have given their lives to working at sea. It is held every year at Norah Head, just under the lighthouse, on the great Central Coast shore. At that service one of the stories that is retold of the history of merchant shipping in Australian waters is of the very first casualty during the Second World War, where a marine vessel went down off the beach at The Entrance. There was an amazing loss of life so close to our shores in an attack by the Japanese at that point in time. There is risk involved in this profession, in this industry, and it is important that we recall that on that particular day.

We need to continue to work to improve the conditions in the maritime sector. It is important that Australia, by ratifying the Maritime Labour Convention, assists in enabling it to come into force and achieves the consolidation of more than 60 international labour organisation standards entertained over decades. Commencement of the Maritime Labour Convention requires the ratification of 30 member countries, with a minimum of 33 per cent of gross tonnage represented by those countries. Currently about 15 countries have ratified the Maritime Labour Convention, with ratification pending for three others.

The convention is comprehensive and deals with matters including the minimum requirements for seafarers to work on ships. It deals with conditions of employment, accommodation, recreational facilities and food and catering. Importantly, it deals with health protection; medical care; welfare; and social security protection, compliance and enforcement. Australia can play its part in ensuring that a global standard is successfully implemented and enforced, and that is what this legislation will achieve. Once the ratification target has been achieved by the International Labour Organisation, the convention will come into force 12 months later.

As a member of this parliament I look forward to the great advancement in workers' rights that will occur after this convention commences. After ratification, ships of all countries will be subject to inspection in any country that has ratified the convention. If a ship does not meet a minimum standard then the ship will be subject to possible detention.

This bill effects the implementation of the Maritime Labour Convention into Australian law. It is firstly important to recognise that these amendments only apply to Australian ships with a gross tonnage of 200 and over. They do not apply to ships engaged in freighting. Additionally, the requirement for ships to carry documentation as evidence of compliance applies only to ships of 500 gross tonnes and over engaged in voyages to or from ports outside of their country of registration.

The Navigation Amendment Bill implements the Maritime Labour Convention under Australian law through a number of means. First, the bill removes inconsistencies between the Maritime Labour Convention and our Navigation Act. This is vitally important in ensuring that the Navigation Act operates according to the principles and language practices of the Maritime Labour Convention. This assists in ensuring that the Navigation Act is applied and enforced in accordance with those international standards.

Second, the insertion of section 45A of the Navigation Act and the revision of section 46 significantly advance the manner in which workers' rights are enforced in the maritime industry. The new section 45A gives effect to standard A.2.1 of the MLA. This standard specifies that all crew members on a ship with a cargo of greater than 200 tonnes are required to have an employment agreement. The master of the ship is subject to criminal liability if they take a ship to sea without employment agreements that comply with section 45A of the act. This is an immensely important means of ensuring that the working rights of the crews of ships are properly determined and properly enforced.

Third, these amendments recognise the well established international, Commonwealth and state standards that both owner and master are liable for such breaches. Importantly, these provisions improve the clarity of the legislation governing the rights of workers in the maritime industry. They ensure that owners and masters of ships are subject to appropriate liability and that seamen are provided with appropriate rights. Another important provision in the amendment bill is the proposed section 53, concerning the availability of information in regard to the conditions of employment. This section states that the regulations may prescribe that the owner of the ship is required to make available to the master and seamen information in regard to their conditions of employment. This really does represent a significant modernisation of current provisions in the Navigation Act, and it will certainly improve the accessibility and clarity of information in regard to the rights of maritime workers.

Another significant example of this modernisation is division 10 of this amendment bill, relating to the payment of wages. Proposed section 70 of the Navigation Act will clearly set out the required content of regulations relating to the payment of wages. Requirements in section 70 are comprehensive, and they relate to the frequency with and method by which wages are to be paid; permitted deductions of payments to masters and seamen; and payslips. The requirements are written in modern language and will greatly assist in improving the manner in which these regulations are made and enforced.

I am proud to support a government that believes that workers' rights are human rights. It is this party that will always respect the rights of workers and believe that labour is not just like any other commodity. It is this party which values the role of the International Labour Organisation in having advanced the rights of workers globally. Indeed, it is through the advancement of workers' rights that global living standards have improved over time. This is while recognising the importance of a degree of appropriate flexibility in labour markets as provided in the Fair Work Act.

The Maritime Labour Convention demonstrates the effectiveness of the International Labour Organisation in modernising and improving workers' rights on a global scale. The ratification of the Maritime Labour Convention will represent a victory in global agreement and cooperation. As a member of the Australian Labor Party, I am confident that the ratification of the Maritime Labour Convention will improve global workers' rights. Additionally, I believe that the ratification of the Maritime Labour Convention will improve the rights of seamen from Asia-Pacific nations, who make up 60 per cent of global maritime workers. That is, of course, definitely worth supporting. Australia can and needs to do its part in ensuring that the Maritime Labour Convention is enforced. Once the convention is ratified, Australia will certainly play its part in upholding, regionally and globally, the rights of maritime workers. (Quorum formed)

Sharon Bird (Cunningham, Australian Labor Party) Share this | Link to this | Hansard source

I should indicate to members that it is my intention, although it is after eight o'clock, to allow the member to conclude her comments before calling the deferred division.

Deborah O'Neill (Robertson, Australian Labor Party) Share this | Link to this | Hansard source

We truly are a nation continent and a continent nation. The advancement of air travel and air freight has changed much, just as the NBN will bring even more change to how we connect from our island home to the rest of the world. But the movement of physical goods to and from our shores and the prosperity of our nation will always be inextricably linked to the global shipping trade. As global citizens aware of our international obligations, it is important that we ensure that the Maritime Labour Convention is ratified and enforced globally and that we enforce it in our domestic law. In duly exercising the authority to govern secured at the last election, the Gillard government has committed itself to ensuring that responsible and commendable legislation will be advanced. This legislative amendment is both commendable and responsible. I commend the bill to the House and urge its prompt passage through this place.

Debate adjourned.