Brett Whiteley (Braddon, Liberal Party) Share this | Link to this | Hansard source

My question is to the Deputy Prime Minister and Minister for Infrastructure and Regional Development. Will the minister inform this House why reform to coastal shipping legislation is needed, particularly for my home state of Tasmania?

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

I thank the honourable member for his question. I also thank other Tasmanian members for continuing to draw my attention to the vital importance for a state like Tasmania of having competitive shipping rates. Simple geography demands that for Tasmania to be competitive it has to have shipping rates that are comparable with freight rates in other parts of the country. Shipping plays a vital part in Australia's economy. Around 99.5 per cent of Australia's trade is carried by ship.

Opposition Members:

Opposition members interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Griffith can remove herself under standing order 94(a).

The member for Griffith then left the chamber.

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

So it is absolutely essential that we have competitive shipping rates in this country. I know that Tasmanian shippers are struggling with increased costs. As an example, Bell Bay Aluminium in the member for Bass's electorate has reported a massive 63 per cent increase in freight rates from Queensland following the first year of Labor's so-called shipping reforms—one year of Labor's shipping reforms leading to a 63 per cent increase in freight rates! At the same time as this increase from $18.20 a tonne to $29.70 a tonne in just one year was occurring, the rate for international vessels on that same route was $17.50. In that same year, demurrage costs more than doubled from $14,000 to $35,000. This has taken $4 million of the bottom line of Bell Bay Aluminium, a company that employs 400 Tasmanians.

It is not just that industry. Many are bearing the burden of extra shipping costs as a result of Labor's shipping changes. It is especially the case for primary industries in Tasmania but it is true for other parts of the country as well. Labor's shipping reforms were supposed to revitalise Australia's shipping industry, but in fact they were just a sop to Labor's trade union masters in the MUA. Labor's plan has not saved a single job in Australian shipping, but it has cost hundreds of jobs onshore. The reality is that these so-called shipping reforms have been a catastrophe for the Australian shipping industry. In the two years of their operation, the deadweight capacity of Australian flagged ships has fallen by 64 per cent. Two-thirds of our shipping capacity has been lost in just two years under Labor's so-called shipping reforms. The industry is at a crucial point. We need reform. We need to make changes to the shipping industry so that it can survive and underpin a strong Australian economy.