Don Randall (Canning, Liberal Party) Share this | Link to this | Hansard source

I would like to speak on the Customs Amendment Bill 2014. This bill builds on the good work already undertaken by the Minister for Immigration and Border Protection, the Hon. Scott Morrison, in this portfolio area. It is another example of how the coalition government is maintaining a steady hand on the reins of government and focusing on getting the job done.

While the amendments in this bill are mostly minor, they seek to update what is essentially a Federation era act to ensure that the guardians of one of Australia's most important assets, its border, are legislatively equipped to best fulfil their duties. It begins to lay the very early groundwork for the merger of Customs and Immigration and the Australian Border Force subsequent to its establishment.

Specifically, this bill seeks to do six things. Firstly, it allows for class based authorisations to include offices or positions that come into existence after the authorisation is given. Secondly, it extends Customs controls to those places at which ships and aircraft arrive in Australia in accordance with section 58 of the act. Thirdly, it will provide for greater flexibility in relation to the reporting of the arrival of ships and aircraft in Australia, and reporting of stores and prohibited goods on such ships and aircraft. Fourthly, it seeks to improve the application processes for several permissions under the act. This legislation will also support initiatives to enable online applications for these permissions. Fifthly, it provides an extension of Custom's powers of examination to the baggage of domestic passengers on international flights and voyages, and to domestic cargo that is carried on an international flight or voyage. Sixthly, it provides an enhancement of the interaction of the infringement notice scheme with the claims process under the act in relation to prohibited goods.

This is a sensitive bill that fixes up a bit more of Labor's mess from their time in government. In this case, it involves border protection as it relates to Customs. Before I proceed, I would like to use this opportunity to remind the House that the previous Labor government's border protection failure was not limited to their incompetence when it came to the illegal boat arrivals. As the member for Banks told us, that was some 50,000 people and cost this country $11 billion. Can you imagine what $11 billion would have done to enhance customs and border protection? The opposition would not have had to make the cuts that they enacted while they were in government for six years. That $11 billion could have added to the protection and scrutiny of our borders and those coming across our borders.

If Labor had remained in government over $734.8 million—or close to three quarters of a billion dollars—would have been cut from the Customs budget over the forward estimates. That is their own figures. These cuts would have followed the 700 job losses that had occurred in Customs under Labor. In other words, they had a 12 per cent cut in the workforce. And they want to talk about efficiency dividends in the ABC! They had a 12 per cent cut in the workforce, and a $58.1 million cut in the 2009-10 budget for the Customs cargo-screening program. These cuts resulted in the reduction of 25 per cent in sea cargo inspection and a 75 per cent reduction in air cargo inspections, despite an increase in imports

As the previous speaker told us, it went from 60 per cent of air cargo inspections during the Howard government era to five per cent under Labor, because of the cuts. They pulled the budget on them so they could not do the job. Sea cargo inspections went from 40 per cent to 3½ per cent. The $11 billion that was squandered on changing a program that had fixed our borders to finding a solution to unfix them could have been used to fund proper scrutiny of our borders. As I said, the inspection of sea containers is one of the most disgraceful things.

We know that as a maritime country, Australia relies on exports and imports into the country by sea and by air, but the number of physical inspections of the massive containers that come through our ports got down to 3½ per cent and less. We heard that a half per cent of them were physically inspected. If you want to be a crim and bring stuff into this country, the best way is to play 'container lotto', and make sure that you bring it in by container, because you know that your chances of being caught are pretty remote.

We also know that over $44 million was cut from Australia's international passenger facilitation program. This has continued to put our Customs officers under the pump in intercepting contraband and prohibited items, simply because they have had their funding pulled. To call what Labor did to Australia's border services a failure is probably being generous, because in actual fact Labor's attitude towards Customs was the same blase attitude that it took towards Defence and national security; it was itself a form of negligence. That attitude, as we know, came right from the top—remember: Rudd-Gillard-Rudd. On 24 January last year, Prime Minister Julia Gillard declared that the 9/11 decade was over. David Wroe of the Sydney Morning Herald wrote:

Ms Gillard said the behaviour of countries would once again dominate Australia's national security thinking, ending an era in which ''non-state actors'', such as terrorist groups, posed the greatest risk.

What a way to base your international policy on the assumptions about what is a happening overseas rather than making sure you actually do the job properly here.

It is 18 months later, and the greatest risk to Australia right now is radicalised extremists returning to Australia and to the South-East Asian region, spreading their hate and seeking to harm Australia, its citizens and their interests. An article in the Australian published on 21 of August by Peter Alford quotes Indonesia saying that officially there are 50 Indonesians fighting in Iraq and Syria and at risk of return. However, the article points out that some security experts place that number at 500—10 times the official figure. There has been a good working relationship between our countries, and I have the greatest confidence in the ability of both Indonesia and Malaysia to counter such threats. In a world so uncertain, Australia cannot afford to be found sleeping at the wheel—and that is what we were doing under the previous government.

I have told you where the problem was; now I am going to tell you what we are doing about it. Since coming to government, the coalition has turned around the fiscal position of Customs and Border Protection. As previously stated, on 1 July 2015, the Australian Border Force will be established as part of the amalgamation of the Department of Immigration and Border Protection and the Australian Customs and Border Protection Service. Not only will this amalgamation see costs relating to the duplication of back-of-house operations reduced; it will also allow the department and specifically the ABF to focus their resources on front-line operations, protecting Australians and keeping our borders secure. The coalition government will be delivering a $480 million package, which will include $98 million for enforcement operations and supplement the acquisition of six additional patrol vessels to the tune of $249.6 million, to support the National Border Targeting Centre to develop and advance its intelligence capability and systems; over $70 million to establish a Trusted Trader framework to reward those individuals who do the right thing and allow the ADF to focus their resources on high-risk areas; and a $53.6 million allowance for the consolidation of workforce and the establishment of an ABF college.

While we are on that, one of the ways that Customs does its job is by profiling. If you are a passenger coming through the airport—and we have all done this—you wonder why they stand there and look at you and say, 'You go that way and you go this way. You go and get your bag searched. You keep going through.' It is because nine times out of 10 they have done a profile on you before you have even got there. If you have come from a country where there is a high risk of people wanting to do nefarious things, it is a good chance that you will go to the bag search area. If you have got a clean criminal record in Australia and you have not been involved in drugs or any bad behaviour, they will probably send you along with the majority of people—straight out the front. This profiling was reduced. As we said, the intelligence capability of the systems were reduced by Labor cuts, but we are putting money back into it. We are taking the threats to border security seriously, and the investment this government is making, combined with the measures that we are taking to strengthen our legislative instruments, as in this amendment, are crucial to keeping our borders safe. I could go through other issues, but, as the other speakers have done that rather well, I will not take the time of the House to do so.

However, I want to conclude by saying a few things. The amendments contained within this bill seek to bring about a common sense approach to the problems that the Australian Customs and Border Protection Services faces on an almost daily basis. This is another example of how the coalition is keeping a tight grip on the reins of government and, in this particular case, getting on with the job of making our borders secure, not just from illegal entrants but, as I said, at ports and airports and in a whole range of others areas where people wish to enter Australia illegally. We have not even mentioned the fact that, if people want to misbehave and do something illegal, they do not necessarily come through the front door of an airport. They might find some remote airstrip somewhere in the Northern Territory or elsewhere. We have also seen people arriving at desolate and isolated spots on our coast, which also need border protection. We know customs has planes to do this; we know that customs is even interested in heading towards the use of drones to do this—because that is the modern way of surveillance.

We have stopped the boats; we are shutting down the detention centres; we are going to save those billions of dollars a year. We have not heard the latest figure, but I do know that so far there has only been one boat that is reached Australia in the last 12 months—compared to 350 or thereabouts in the same period of time. That is, one boat compared to so many boats and 20,000 people in the community who Labor is still trying to stop us from processing, and that is still costing us money though it is costing us a darn sight less than when Labor was in charge of the Treasury benches. We have stopped deaths at sea and we are taking children out of the detention centres. It really makes you grimace when you hear our critics talking about children in detention—we are taking them out; we are educating them; we are paying for them to go to school in detention centres, unlike the previous government. We are doing something to fix up the mess we inherited. We are doing what we said we would do and we are delivering on what we said we would do.

I recall vividly before the last federal election, as I went around my electorate doorknocking, people said to me: 'You can't stop them—the gate's open—there's no way in the world that you guys will be able to stop them.'

Joel Fitzgibbon (Hunter, Australian Labor Party, Shadow Minister for Agriculture) Share this | Link to this | Hansard source

Were you out doorknocking? I don't believe it. I want the photo!

Don Randall (Canning, Liberal Party) Share this | Link to this | Hansard source

Let me say to the member for Hunter that if you ever want to come doorknocking with me, see if you can keep up. I don't think you would have the stamina. The last door you would have knocked on would have been the front door of your local pub. Don't tell me about doorknocking—I am the doorknocking king from Western Australia. You need to understand that. We understand border protection policies and I say that these amendments will enhance what we are able to do on a whole range of issues. I commend this bill to the House.

Ian Goodenough (Moore, Liberal Party) Share this | Link to this | Hansard source

The Customs Amendment Bill 2014 is designed to build on the government's legislative agenda of border protection by strengthening the Australian Customs and Border Protection Service. This will serve to prevent the entry of prohibited items and illicit goods into our country and clamp down on the avoidance of import duties on dutiable items.

The challenges faced by our customs and border protection agency is compounded by the vastness of the Australian continent, which covers an area of more than 7.6 million square kilometres with a total coastline length of 35,876 kilometres and an additional 23,859 kilometres of island coastlines and some 758 remote estuaries around the country at which vessels may land. Australia's extensive exclusive economic zone covers 8.1 million square kilometres. We have a sparsely populated continent with a significant number of remote towns, where only basic port and airport facilities exist, without the advanced security found in capital cities. It is in this context that the task of monitoring our borders and controlling the international flow of passengers and goods represents a massive undertaking for the Australian Customs and Border Protection Service.

By improving our border protection capabilities to intercept contraband and the smuggling of illegal cargo—such as drugs, weapons, and materials subject to quarantine—we will be able to combat transnational crime, preserve the biosecurity of our agricultural industry and promote greater national security. This bill seeks to make a number of relatively minor technical amendments to the Customs Act of 1901, which will serve to close a number of loopholes that could potentially allow illicit cargo and prohibited items to go undetected or be transferred from vessels and aircraft within Australian jurisdictions.

The anticipated future increase in the flow of passengers and goods across international borders is brought about by the emerging economies in our region with increased international trade facilitated by free trade agreements with Japan, Korea and China. Trade is projected to increase further as a free trade agreement is expected to be reached with India and as Australia develops stronger economic partnerships with the 10 member countries of the Association of South East Asian Nations, ASEAN, and beyond. Our customs service must be adequately prepared and resourced to cope with the increased demands encountered at all entry points to Australia.

Perhaps the most significant of the proposed amendments are designed to allow customs officers to examine domestic goods carried on domestic legs of international flights. Currently, under section 30 of the act, customs control does not extend to domestic goods, which include domestic cargo or personal effects of domestic travellers once they are loaded onto or unloaded from international ships and aircraft. Section 186 of the act does not adequately provide for the examination of domestic goods on domestic legs of international flights and voyages. In practice, domestic travellers on international flights or voyages access the customs controlled areas of ports and airports and mix with international travellers prior to, during and after the domestic leg of the flight or voyage. Domestic cargo can currently be loaded or unloaded from a ship or aircraft on a domestic leg without any authority or permission under the act. The bill seeks to correct this anomaly by granting customs officers the necessary powers to examine domestic goods carried on domestic legs of international flights.

Another key aspect of the bill proposes that customs control be extended to goods on board a ship which docks or an aircraft which lands at any place in Australia that is not a designated port or airport

Currently, the act does not extend Customs control to goods which are on board a ship or an aircraft at a place other than a designated port or airport in Australia. From time to time it may be necessary for vessels or aircraft to dock or land at places on the Australian mainland due to adverse weather conditions or other reasonable causes under section 58(1) of the act, or if the master of a ship or the pilot of an aircraft has received permission from a collector to bring the ship or aircraft to land under section 58(2) of the act.

For instance, the cruise ship industry regularly seeks permission to visit non-proclaimed areas of the Australian coastline, and the stopover may involve disembarking travellers or unloading goods in these locations where government agencies do not have a presence. Goods on board a ship or aircraft in these circumstances are not currently subject to Customs control and cannot, therefore, be examined by an officer of Customs under section 186. To ensure that border risks and intervention activities can be managed appropriately, it is proposed that Customs control be extended to goods on board a ship or aircraft at the place to which the ship or aircraft has been brought under the circumstances covered in sections 58(1) or 58(2) of the act. Item 5 repeals and substitutes section 31 of the act to ensure that all goods on board a ship or aircraft from a place outside Australia are subject to Customs control while the ship or aircraft is within Australia.

The bill also contains amendments which add legal certainty to the circumstances in which the Chief Executive Officer of Customs can authorise persons to carry out functions under the act. Currently, the CEO of Customs can authorise an individual by name or position, or a class of offices or positions, to be authorised officers for the purposes of carrying out functions under particular provisions in the act. Unlike delegations, the law remains ambiguous as to whether an authorisation will apply to future offices or positions created within an authorised class that come into existence after the authorisation is given. The amendment proposes to amend the definition of 'authorised officer' in the act so that authorisations can apply to future offices or positions created. This will preclude the need to update authorisation instruments on a regular basis to ensure that new offices are covered.

In addition, the bill will improve and make consistent with other parts of the Customs Act the application process for permission to load and unload a ship's and an aircrafts' stores, and for the transfer of goods between certain vessels. The proposed amendments are designed to standardise the application processes in the act by requiring applications for certificates of clearance to be in an approved form. This supports the Australian Customs and Border Protections Service's initiatives to streamline processes and eventually allow applicants to apply for clearance certificates online.

The bill will also provide greater flexibility in relation to the reporting of the arrival of ships and aircraft in Australia and reporting stores and prohibited goods on such ships and aircraft. These changes will allow earlier assessment and the planning of resources required if the stores or prohibited goods reported present risks, including the management of firearms, weapons, and narcotics. The bill will also correct a technical error in relation to the interaction of Custom and Border Protection's Infringement Notice Scheme and claims process for seized goods under the Customs Act.

In summary, the measures contained in the Customs Amendment Bill 2014 are designed to incrementally improve the security of our national borders by addressing anomalies in the current system. By giving the Australian Customs and Border Protections Service the necessary powers to examine domestic goods en route to and from international destinations in the circumstances outlined, and at places within Australia other than at ports and airports where foreign vessels or aircraft land, the government can intercept prohibited items, illicit goods, and dutiable items, preventing them from crossing our borders. The bill also ensures that the legislation is brought up to date with current Customs practice, and I commend the bill to the House.

Ewen Jones (Herbert, Liberal Party) Share this | Link to this | Hansard source

In relation to the Customs Amendment Bill 2014, I want to tell the story of what is happening in Townsville at the moment. Townsville has a limited international airport. We want to start new international flights to another destination—say, Bali. To do that, we have to get customs, immigration and quarantine services into Townsville. On a discount-airline basis, it is a very competitive trade. But if we have to fly in these people and all these things, then all the extra costs in this space mean that we are no longer competitive. We previously had that flight when Strategic Airlines did it. To get customs, immigration and quarantine services into Townsville it ended up costing us more on the ground that it did in the air. So it was no longer competitive to come through Townsville to go to Bali. So when we did that, no-one used it and the thing shut down. What we need in Townsville—and this plays into the development of Northern Australia as well—is assistance to get customs, immigration and quarantine services up and running and to get them underway.

Minister Scott Morrison and his office have been fantastic to me and to Townsville airport in relation to our discussions in the space. But at every turn I have come up against the problem with the massive cost overruns we have had over the last six years. Our border protection policies, all that sort of stuff, has been in so much strife—$11 billion. No matter what the cost, we have got a real issue when it comes to being able to provide new services.

I see the member for Solomon in here. The member for Solomon is a valued member of the development of Northern Australia white paper committee. She has been around the north of Australia. She has been to my city of Townsville and she knows what a great place it is, as I know that Darwin is a great place. What the member for Solomon and I are all about is growing the north, growing opportunity.

But at every level government must balance its budget, and must live within its means. What we have to do is to try to figure out how we are going to get this service up and running when you have to fly in staff and it has to be on a cost recovery basis. So when it gets to trying to get customs, immigration and quarantine services, we are starting from so far behind the starting line that we cannot catch up.

Deputy Speaker Kelly, I heard you in Federation Chamber this morning talking about business. You spoke about going overseas and getting things done and all sorts of stuff about running a business. Up until 2007, Australia, as a business, ran with a great return to the company. We were reinvesting in the company of Australia, of Team Australia. We were getting all our stuff rolled out. We had money in the bank. We were investing for the future. We were able to afford anything. If anything happened, we were able to do that. The GFC hit, and no-one is denying that the GFC caused a lot of pain. I see the communications minister down there sitting at the table. He was the leader of the opposition at the time and he backed the first round of stimulus, as was right. He was also right when he walked away from the second round of stimulus and said that they were going too hard. And they just ran up so much debt. The member for Wentworth, now communications minister, was also right when he said we are losing control of what we are trying to do here. There was too much money going out and there was too much debt. Once you lose control of your cash flow, once your cash flow is going into paying interest instead of paying for other products or paying for upgraded plant and equipment in your business, you lose control of your business.

I am an auctioneer by trade, and my area of specialisation was in insolvency. I would go into businesses and shut them down, sell off of the plant and equipment, and move on. Just about every insolvency was around cash. If you lose control of your cash flow, you lose control of your business, if your debts are ratcheted up too high. I worked through the Keating recession of the early 1990s, when interest rates were in their 20s, and what really knocked a lot of businesses around was that so much of their working capital went into the business of paying off debt. And that is where we are at the moment.

So when it comes to the customs, immigration and quarantine services, the Customs Amendment Bill does a whole heap of things. It amends the Customs Act 1901. It is about making sure that we balance our books. It is about making sure that we are living inside our means. It is about making sure that we do have that base from which we can grow. If I had had this opportunity in 2007, it would have been a no-brainer. If I had had the opportunity in 2007 to put an international airport into Townsville or start international flights through Townsville—because we are a limited international airport at the moment—it would have been a no-brainer. We would have done it. Because we had the cash there to say 'Okay, that sounds like a great idea, we will do that.' But now, because of the way things are, money is very tight. So to get $2 million or whatever we need to get started is very hard.

All the way through, no matter what bill we are talking about—and this is the Customs Amendment Bill 2014—it all comes back to the economy. It all comes back to being able to afford what you want to do. If you have cash in the bank you can do anything you want.

I remember that great Australian story on the ABC on Kerry Packer about his kidney transplant. The great line that he said was: 'The beauty about having cash is you can go anywhere you want. I could have this operation in New York, or Geneva or wherever.' He said that the best bloke to do it was in Sydney. But he said that if you have the cash you make the decisions. If you lose control of your cash, you are not making your own decisions. You are playing catch-up and you are trying to do things you are not supposed to be doing.

When I speak about this bill, I speak about living within my means. I speak about making sure that we do live within our means and making sure that everything is affordable.

If I can just quickly touch on the ABC cuts in relation to this customs bill, because it all comes back to what you do with your cash. When you make your decisions, when you make your statements, you make it with the information you have at hand at the time. Six months down the track, or 15 months down the track, circumstances are vastly different and so your decisions have to be very different. And that is as it goes with the Customs Amendment Bill. It all comes down to making sure that we live within our means. It all comes down to making sure that we do the right thing by the economy. We can do what we want if we do that, if we get in touch with our base and build our base.

I remember reading just recently the valedictory speech of the great Labor finance minister Peter Walsh. He left the Senate in 1993. He bemoaned the fact that he did not think we would ever pay back the debt Labor had run up at that time. He did not think we would ever pay it back. The quote I love is where he said that the first thing you lose is your economic sovereignty, and then you lose your political sovereignty. As in business, you end up with administrators and liquidators moving in. As a country, you end up having to make decisions that no one is happy about. I support the bill and I thank the House.

Natasha Griggs (Solomon, Country Liberal Party) Share this | Link to this | Hansard source

The Customs Amendment Bill 2014 makes a number of small amendments to the Customs Act. The amendments are mostly technical—they are not controversial. They aim to improve and strengthen the act that outlines our customs framework. Minister Morrison has proven to be one of the most effective ministers in the Abbott government. He certainly has been one of the most effective immigration and border protection ministers that this country has ever seen. It is through his strong leadership and dedication that the Abbott government has been able to stop the flow of illegal maritime arrivals into Australia. As promised before the last election, we have all but stopped the boats. We are now working on the massive backlog of asylum seekers that the previous Labor government simply stopped processing. It thought that by some magical intervention some solution would appear and fix the mess they had got themselves into. We know what that solution is—it is the Abbott government. Once again we have to fix the mess that the Labor Party left us. We are about getting Australia back on track and providing some certainty especially to those people who were seeking asylum under Labor. Those people were left with no answers and no idea about when their applications for asylum would be processed. Minister Morrison has also proven to be an excellent advocate for Australian customs issues. He is methodically and logically working through bits of the customs legislation and ironing out some of the creases, once again to get things back on track.

My electorate of Solomon covers the cities of Darwin and Palmerston, and we are quite often the front line for on-water Customs operations as well as Customs operations through the Darwin International Airport. Mr Morrison recognises that there is some important work carried out in the Top End and that is why he has visited many times, both before the election and certainly after the election. He has met personally with Customs and Border Protection personnel, and he always seeks their feedback on what is working and what is not working. Minister Morrison recognises that they are the subject matter experts—they are on the front line, they have a wealth of knowledge and they know what is needed to protect our borders from particularly unwanted goods.

The bill contains various amendments to the Customs Act. More broadly, those changes are about improving the administration of the appointment of authorised officers. The allowance of class-based authorisations will include future offices or positions that come into existence after the authorisation is given. The bill is about extending Customs controls to those places where ships and aircraft arrive in Australia that are not proclaimed ports or airports and where agencies do not necessarily have a strong presence. It is about providing greater flexibility in relation to the reporting of the arrival of ships and aircraft in Australia and reporting of stores and prohibited goods on such ships and aircraft. It is also about improving application processes for several permissions under the act. These amendments will also support initiatives to enable online applications for these permissions. The bill is also about extending Customs powers in relation to the examination of baggage for domestic passengers on international flights and voyages and of domestic cargo that is carried on international flights and voyages, even though these travels may not be on an international leg. The bill also corrects a technical error, resulting in the enhancement of the interaction of the Infringement Notice Scheme with the claims process under the act in relation to prohibited imports. These amendments aim to improve the practicalities of protecting our borders from unauthorised entries and undesirable goods entering Australia.

My electorate, covering the areas of Darwin and Palmerston, faces a number of different customs threats. For example, every fishing season there are scores of illegal fishing vessels intercepted off the Top End. Illegal fishing poses a real threat to Australian fish stocks and the Australian economy. The waters off Darwin are a pristine marine environment that we regulate to avoid overfishing and pollution causing damage to our marine life. Illegal fishing activity directly undermines the Australian government's hard work and integrity measures put in place to ensure that we fish sustainably and harvest seafood in a way that enables future generations to access the wonderful range of foods we are so fortunate to have in our oceans.

Customs and Border Protection are committed to protecting Australian borders on the high seas and are particularly effective in intercepting illegal entries, considering our unfathomably large borders. Just yesterday Border Protection Command and the Australian Fisheries Management Authority intercepted two foreign fishing vessels just 170 nautical miles off Darwin The vessels had on board 14 crew, 45 kilograms of dried fish, 10 kilograms of fresh fish, six live fish and some fishing and diving equipment, all of which, thankfully, has been seized. They were intercepted by the Australian Customs and Border Protection Service vessel Dame Roma Mitchell. The two boats have been apprehended on suspicion of illegal fishing activity in Australian waters.

In May this year HMAS Glenelg intercepted a foreign fishing vessel off the coast of Darwin. This boat was also suspected of illegal fishing activity in the Australian Fishing Zone. Border Protection Command personnel found almost 50 kilos of Spanish mackerel, 20 kilos of tuna, 20 kilos of dolphinfish and 10 kilos of barracuda on this vessel.

Illegal fishing poses a threat to my electorate, because one in three households in my electorate has a boat. We have a lot of keen fishermen in my electorate. But it is not only the recreational fishers that are impacted by illegal fishing; it is also the small businesses. Many local businesses rely on the regulation of commercial fishing in our region. These large amounts of seafood being taken illegally from our waters mean more work with fewer positive outcomes for our local businesses.

Back in April, the Australian Customs vessel Cape St George intercepted two foreign fishing vessels, also suspected of illegally fishing in the Australian Fishing Zone, after detection by an Australian Customs and Border Protection Service Dash 8 surveillance aircraft. On Monday, 28 April, Border Protection Command personnel boarded these vessels approximately 167 nautical miles north-north-west of Darwin. The vessels had around 190 kilograms of wet trepang—that is a lot of sea cucumber. They also had some diving equipment on this boat. Customs personnel also saw people on a second boat throwing items overboard, and they were also found to have various fishing equipment and bags of salt, all indicating that there was illegal fishing activity occurring.

Also in April, HMAS Launceston intercepted a foreign fishing vessel approximately 180 nautical miles north-west of Darwin, which was also suspected of illegally fishing in the Australian Fishing Zone. It was found to have approximately 20 kilos of salted trepang, five reef fish and five kilos of dried fish, along with hookah and some diving gear.

Also in April, a foreign fishing vessel was detected approximately 275 nautical miles west of Darwin by, once again, an Australian Customs Dash 8 surveillance aircraft and was intercepted by the Australian Customs vessel Botany Bay. The vessel had fishing lines deployed and over 500 kilograms of fish on board. That is just outrageous.

In March this year, four foreign fishing vessels with a total of 58 crew were apprehended approximately 180 nautical miles north-west of Darwin. The wooden vessels were intercepted on Wednesday, 12 March and Thursday, 13 March by HMAS ships Launceston and Glenelg. Over 60 giant clams were found on board the vessels, as well as large quantities in their holds. Personnel also found a large quantity of sea cucumber and another large number of assorted fish.

I would like to put on record the outstanding work that our Customs and Border Protection people do. I think the examples I have just given highlight the success that they have been able to achieve.

Another pressing issue in my electorate is the running of drugs in and out of our international airport and also our domestic airfields to remote communities around the Northern Territory. The Northern Territory Police do an amazing job of monitoring this dangerous trade. The knowledge and expertise of our Australian Customs is invaluable in sharing information and skills.

As drug runners use more creative ways to evade authorities, Customs must be appropriately equipped to deal with these constantly changing tactics. The coalition is ensuring that Customs and Border Protection agencies are well funded and properly resourced, so they can continue to protect not only my constituents but also the rest of the Australian communities from drugs, crime and disadvantage associated with drug use.

Customs officers working in my electorate in monitoring or looking after Darwin International Airport do an incredible job combating drug trafficking. The Top End is often referred to as Australia's gateway to Asia. This is because there are eight capital cities and 69 international airports within a four-hour flight north of Darwin. This means Customs officers have a huge responsibility in protecting Australia's borders at Darwin International Airport. We have many international flights in and out of Darwin. We need to do all we can to support these hard workers, who are often the front line of defence from external threats coming through our airports.

It is obvious that customs officers in my electorate are doing a fantastic job by the large drug busts that they have made this year alone, which I will relay to you. An investigation beginning in July resulted in one arrest and the seizure of 1.6 kilos of heroin, cocaine and methamphetamine in Darwin last month. Thank God those drugs are no longer available in the community.

The joint agency operation targeting air cargo began when Australian Customs and Border Protection Service officers in Darwin identified multiple consignments of suspicious packaging originating from Bangkok. In September Customs personnel apprehended a 42-year-old UK national and a 56-year-old Australian national, who have now appeared in Darwin court charged with the attempted smuggling of two kilos of ephedrine into Australia. In July, a Victorian man arrived on a flight from Malaysia and he was found to have a laser pointer, a knuckle duster, 30 electric shock devices disguised as torches, a spring-loaded knife, 700 steroid tablets and 1,400 tablets containing Viagra. Thankfully they are also not available in our community anymore. You can tell that the operation does fantastic work in my electorate. As the member for Solomon, I recognise the important role Customs officers play and I am united with the minister in wanting to ensure our Customs and Border Protection agencies are properly resourced. I commend this bill to the House.

Nola Marino (Forrest, Liberal Party) Share this | Link to this | Hansard source

The member for Solomon, in her contribution today, demonstrated very clearly why the Customs Amendment Bill 2014 is important and also the challenges being faced by this wonderful island nation, with its extensive coastline. I also want to commend her for her complimentary remarks in relation to the Australian Customs and Border Protection officers and their work. From Darwin and into your area they do an amazing job—and I did meet some of them when I was there previously. They have a huge task, and clearly they are very effective. And they have someone strong to represent their issues here in the parliament, so well done, Member for Solomon. There are many challenges, as we heard from the member for Solomon, with illegal fishing and drugs. When I was listening to the member for Solomon, one of the issues that hit me, as a farmer, was how difficult it is to protect our biosecurity in this country, with so much coastline and so many people, for different reasons, wanting to land here in Australia. With wooden-hulled boats come a whole lot of risks and challenges, so the work done by our Customs and Border Protection officers is certainly significant.

The measures within this bill are technical amendments to the Customs Act 1901, and they will assist our Customs officers in the job that they do. These amendments will allow class based authorisations to include future offices or positions that come into existence after the authorisation is given; extend Customs control to those places at which ships and aircraft arrive in Australia in accordance with section 58 of the act; provide greater flexibility in relation to the reporting of the arrival of ships and aircraft in Australia and reporting of stores and prohibited goods on such ships and aircraft. These are just practical measures.

The bill will also improve the application processes for several permissions under the act. These amendments will also support initiatives to enable online applications for these permissions. That is of course a time-saving, very practical way of managing this. The bill will also extend Customs powers of examination to the baggage of domestic passengers on international flights and voyages, and to domestic cargo that is carried on an international flight or voyage, and enhance the interaction of the infringement notice scheme with the claims process under the act in relation to prohibited imports.

A reference to 'Customs' in the explanatory memorandum simply means the agency continued in existence under subsection 4(1) of the Customs Administration Act 1985—that is, the Australian Customs and Border Protection Service.

The explanatory memorandum says:

Section 31 of the Act provides that all goods on board any ship or aircraft from a place outside Australia are subject to Customs control while the ship or aircraft is within the limits of any port or airport in Australia. Under section 186 of the Act, all goods that are subject to Customs control may be examined by an officer of Customs.

Currently the Act does not extend Customs control to goods which are on board a ship or aircraft at a place other than a port or airport in Australia to which:

(a) a ship or aircraft has been brought because of stress of weather or other reasonable cause …; or

(b) the master of a ship or the pilot of an aircraft has received permission from a Collector to bring the ship or aircraft under subsection 58(2) of the Act.

As a result, goods on board a ship or aircraft in these circumstances are not currently subject to Customs control and cannot, therefore, be examined by an officer of Customs under section 186.

Goods on board a ship or aircraft brought to a place other than a port or airport in Australia pose the same border risks as goods on board a ship or aircraft within the limits of any port or airport in Australia.

To ensure that border risks and intervention activities can be managed appropriately, it is proposed that Customs control be extended to goods on board a ship or aircraft at a place to which a ship or aircraft has been brought under subsections 58(1) or 58(2) of the Act.

The explanatory memorandum also says:

Domestic cargo, and domestic travellers and their personal effects, are carried on domestic legs of international flights or voyages between Australian ports or airports other than proclaimed ports or airports by approved ships or aircraft. Domestic travellers on international flights or voyages access the Customs controlled areas of ports or airports and mix with international travellers—

you see them wandering around—

… during and after the domestic leg of the flight or voyage.

Domestic cargo can currently be loaded and unloaded from a ship or aircraft on a domestic leg of an international voyage or flight without any authority or permission under the Act.

The explanatory memorandum also says:

The mixing of domestic goods and imported goods or goods for export presents risks for diversion of goods from one stream to the other, especially if goods are of a kind that if imported or exported would be prohibited or subject to border related duties and taxes.

It is therefore proposed that the Act be amended to provide that domestic goods (which may be either domestic cargo carried on domestic legs of international flights or voyages or personal effects of domestic travellers …) can be examined by an officer of Customs.

The new subsections 186AA(1) and (2) provide for examination powers in relation to domestic goods. That is what these specific technical amendments are for.

The safety and security of the Australian people and those who are visiting our country are a priority for this government. We have heard repeatedly about some of the measures we have taken in our strong response to a range of threats, be it ISIL or other terrorist threats in Australia or overseas. We have seen close corporation to combat transnational crime with international allies and neighbouring countries. We have seen an investment of $630 million in Australian security and law enforcement agencies for counterterrorism measures. We as a government take these responsibilities seriously.

I see that the Minister for Immigration and Border Protection, the member for Cook, is sitting in the chamber. I commend him for his outstanding effort in his quest to control Australia's border and his commitment to stopping the boats. I think everybody, no matter where they are in the world, has a very clear message about the minister's intent and his commitment to this task. This bill furthers his efforts to make sure that Australians are secure and safe in every way that the Australian government can contribute to that. The Australian has made a contribution of $400,000 to support INTERPOL's foreign fighters initiatives, over and above our ongoing annual membership contributions. The global and interconnected world that we live in basically also creates a borderless ongoing criminal threat. I see that the minister is constantly aware and working on the constantly changing threat that we in this nation face as a result of the fact that we are in a global environment and one of transnational crime. Customs and justice are a key part of that. This government takes very seriously both of those roles. We have seen that through the member for Cook and his very dedicated approach to this.

The government has also invested $20 million to boost AUSTRAC's ability to stop cash being funnelled to terrorists and to crack down on money laundering by organised crime that funds the trade in drugs such as crystal meth and others. We heard from the member for Solomon some of the extraordinary amounts in value and weight of drugs that the Customs service is intercepting not just here but around the world. I notice that the AFP intercepted 81 credit card knives, as they are called, at airports around Australia. I hope some of the measures contained in this bill will assist with this. The knives were detected through airport screening. They are dangerous weapons. They are illegal and are banned from being taken on domestic and international flights. Of course, buying these knives is illegal, but I note through the work that I do in the online space that most of these are bought online. All jurisdictions have offences relating to the sale of a knife that is manufactured to disguise or conceal the blade or to give the impression that it is an innocuous item such as a plastic card of similar dimensions to a credit card. I am very pleased that the government has sourced and resourced additional Australian Federal Police offices at our airports. We also have an AFP counterterrorism officer in Turkey cooperating on global issues and concerns about terrorism and transnational crime. The AFP's international network includes 99 positions across 29 partner countries overseas as well as in Australia.

The recent passage of the crimes legislation dealing with psychoactive substances is also part of our very direct focus on all forms of the safety and security of Australians. We have a very clear duty to protect the safety and security of Australian citizens here and wherever else we can. That has been a commitment by the minister. I think all of us took and are taking very seriously the issues surrounding the disappearance of MH370. They are very real in Western Australia, from where the recovery effort is being managed out of RAAF Base Pearce and other parts of Western Australia.

We are aware that terrorists are constantly changing what they do and how they do it. They are increasingly sophisticated. They are constantly evolving what they do and how they do it. Our customs and border protection agencies need to be able to constantly change what they to, to adapt what they do. We need to give them the tools through these sorts of technical amendments to be able to do the job that we employ them to do. They take very seriously the job we give them.

Returning to biosecurity, we have seen so much wonderful news about three very valuable free trade agreements—those with Japan, Korea and China—and we are working on another free trade agreement, with India, in the year ahead. We will see a lot of produce and goods in and out of Australia as a result of these agreements. Yes, Australia is open for business. That is very clearly demonstrated by this government. There will be increasing demands on Customs because of the trade of goods. The amendments in this bill will assist Customs in the job they have to do in this space. I have no doubt that these measures will assist the officers in the job that they do.

Finally, once again, I have great respect for the Minister for Immigration and Border Protection. I commend him on the outstanding job that he has done on border protection. I know that this is probably not the last piece of legislation that he will bring before the House. His vigilance in his role is greatly appreciated not just by me as the member for Forrest. It is one of the matters that I receive a lot of feedback on in my electorate. It is good to know that we have such strong representation and an absolute commitment to the safety and security of Australia and its borders.

Scott Morrison (Cook, Liberal Party, Minister for Social Services) Share this | Link to this | Hansard source

I want to thank members for their contributions to this debate, particularly the government members, who have been the major contributors to this debate. I want to thank the member for Forrest and my many other colleagues for their strong encouragement of the work that the government is doing not just in the area of customs but more broadly on the issues of border protection.

I also want to note that the opposition indicated their support for this bill in their response earlier today. This is a fairly significant moment. It is fairly common for the opposition to oppose us on border protection measures. In fact, the Leader of the Opposition must have been on autopilot because he did not even know he had voted against a bill here in this very place when the question was put to him about it today when he was speaking at the National Press Club. It is an oddity for the opposition to support this government on stronger border protection but, at least in this case, for what are fairly routine but nonetheless very important matters that are presented in this bill we welcome their support.

This bill is part of a much broader package of measures and initiatives that the government is bringing in on border protection, not just Operation Sovereign Borders and what is being done there to stop the boats so successfully and save lives as a result, to restore integrity to our immigration program and give Australians all over the country confidence in our immigration program. To see that confidence restored in the way our borders are being managed and the way our immigration program is being run in the surveys that have been most recently conducted by Professor Markus and the work of the Scanlon Foundation is very pleasing.

In border protection in particular we are working towards the start-up of the Australian Border Force on 1 July next year. That measure which will see both this year and over the out years the reinvestment of over $700 million back into our Customs and Border Protection Service and the Border Force reverses the cuts that were made to Customs and Border Protection by the previous government of the same amount over their time in government. So we have replaced what the previous government had removed when it comes to protecting our borders and ensuring not just the work of countering people smuggling but the very important work that is done in passage facilitation and goods facilitation.

The member for Forrest made a very good point—and that is that the tremendous work done by the Minister for Trade and Investment has opened up enormous opportunities for this country. That will see much trade now take place between Australia, Japan and Korea as well, of course, as with China. We look forward to arrangements with India and many more opportunities.

The truth of these things is that where those legitimate economic opportunities come, with the movement of both goods and people, the crooks use the same planes, the same internet and the same methods that legitimate traders do. That means that when we expand and open ourselves up, as we should, for greater economic opportunities we also then must redouble our efforts when it comes to ensuring that the crooks, gangs, thugs, people smugglers and traffickers are not able to exploit that increase in economic trade as an opportunity to ply their own nefarious activities and become rich as a result and compromise something that is very dear to this country, and that is the integrity of our borders. It is very much a matter of sovereignty.

These measures have also about bringing to the table quite straightforward, simple changes that will seek to tighten up the legislation even more and close off any loopholes and opportunities that we have identified such that those who might seek to compromise our borders will be frustrated in that purpose.

We have reversed those cuts. There was $88 million in addition to what I mentioned before, which was put in immediately upon coming to government. That has significantly increased our screening capacity. In the first quarter of this financial year, we saw a significant increase in the levels of detections as well as increased screening levels, particularly for sea cargo and air cargo. That is welcome.

There has also been a $150 million investment in our borders as part of the counter-terrorism package which I know many of the government speakers made reference to in their contributions to this debate. This is an omnibus bill that proposes some minor but important changes to the Customs Act of 1901. These changes will extend Customs control to places at which ships and aircraft arrive in Australia in accordance with section 58 of the act. They will also provide greater flexibility in relation to the reporting of the arrival of ships and aircraft in Australia and reporting of stores and prohibited goods on such ships and aircraft. The reforms contained in this bill will improve the application processes for approvals to load, unload and use ships' and aircrafts' stores and permissions to transfer goods between certain vessels and applications for certificates of clearance. These amendments will also support initiatives to enable online applications for these approvals, permissions and certificates.

Importantly, the reforms contained in this bill will extend Customs powers of examination to the baggage of domestic passengers on international flights and voyages and to domestic cargo that is carried on an international flight or voyage. Domestic cargo and domestic travellers and their personal effects are carried on domestic legs of international flights or voyages between Australian ports or airports other than proclaimed ports or airports by approved ships or aircraft. Domestic travellers on international flights or voyages access the Customs controlled areas of ports or airports and mix with international travellers prior to, during and after the domestic leg of the flight or voyage. Domestic cargo can currently be loaded and unloaded from a ship or aircraft on a domestic leg of an international voyage or flight without any authority or permission under the act. The mixing of domestic goods and imported goods or goods for export presents risks for diversion of goods from one stream to the other, especially if goods are of a kind that if imported or exported would be prohibited or subject to border related duties and taxes. The reforms in this legislation will expand the scope of Customs inspection powers to ensure that these vulnerabilities do not persist in the border management environment.

Further enhancements to the act contained in this bill include enhancements to the interaction of the infringement notice scheme with the claims process under the act in relation to prohibited imports and provisions that permit class based authorisations to include future officers or positions that come into existence after the authorisation is given. The amendments in this bill will enhance Customs controls and examination powers and improve Customs compliance and enforcement activities. These enhancements will modernise the environment within which the Australian Customs and Border Protection Service and their successor, the Australian Border Force, operates and help ensure that our border management processes support the best possible systems to facilitate legitimate movement of people and goods and stop those who seek to conduct illicit and illegitimate activity on Australia's borders.

I thank the members for their contributions to this debate. The work of border protection is in the detail. It is about closing off every opportunity for those who would seek to compromise our borders. The package of measures in this bill is yet another step forward by the government to demonstrate our commitment to stronger borders in all areas. I commend the bill to the House.

Question agreed to.

Bill read a second time.