Melissa Parke (Fremantle, Australian Labor Party, Shadow Assistant Minister for Health) Share this | Link to this | Hansard source

As the federal representative for an electorate that is home to WA's largest port, which caters both to cargo and to a growing number of cruise ship visits, and an electorate that is proudly home to the largest branch of the Maritime Union of Australia, I am dismayed at the Abbott government's proposed changes to coastal shipping. Like a number of my colleagues on this side of the House, I strongly supported the reform work of the former Labor government, led by the member for Grayndler, to ensure Australia has a viable coastal shipping industry in future. By contrast, the Abbott government supports encouraging shipping operators to move to foreign-flagged ships for the specific purpose of avoiding Australian workplace pay and conditions. This is exactly what was suggested, more than once, by senior federal government officials when North Star Cruises Australia approached the Department of Infrastructure and Regional Development. The startling advice given to North Star Cruises is the inevitable consequence of this unconscionable bill and will likely be the advice on offer to a number of operators if the Abbott government follows through on its intention to return to the Howard government approach.

If the government's shipping regulation vandalism goes ahead, then North Star Cruises Australia, which has a presence in Fremantle and operates luxury adventure cruises on its yacht, True North, in the Kimberley region of Western Australia, will face competition from foreign operators paying far lower wages in Australian waters throughout the 180-day touring season. Under the proposed legislation, it is only after 183 days operating in Australian waters that foreign-flagged vessels will be required to pay employees Australian award wages. Australian-flagged vessels will obviously suffer in this scenario. As The Australia Institute observed in its submission to the Senate inquiry:

Foreign flagged and crewed ships already have considerable access to the Australian coastal shipping market, making Australian coastal shipping possibly the only service sector facing competition that can use foreign labour while actually operating in Australia. By contrast it is impossible for foreign trucking companies, rail companies or any other service provider to operate in Australia using international labour paid at international rates. As crewing costs make up between 36 per cent and 42 per cent of ship operating costs, this puts Australian crews at a 15-20 per cent disadvantage against international ships in terms of operating costs.

As reported in The Sydney Morning Herald:

…an Australian able seaman receives $US2742 a month compared to an average $US850 a month paid to the crew of ships involved in international freight.

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… the Bass Strait non-bulk freight route between Victoria and Tasmania is currently serviced by 100 per cent Australian crew. Under the government's projections that would become 65 per cent foreign and 35 per cent Australian – due only to the likely retention of Australian crew on the two Tasmanian government-owned Spirit of Tasmania ferries.

Cruise ship work would decline from 40 per cent Australian to 100 per cent foreign and all movements of iron ore, bauxite, petrol and crude oil between domestic ports would be taken by foreign crew.

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In the supporting documents … the government concedes there will be a 'potential loss of Australian seafarer jobs' …

In fact, the bill's own cost-benefit ratio analysis indicates that 93 per cent or 1,089 of coastal shipping jobs will be lost with the changes and will only result in 200 new jobs in other industries. Clearly, such devastation of domestic maritime employment does not serve the best interests of Australian workers or the long-term health of Australian shipping.

We are a maritime nation and common sense tells you that it is in our national interest to support and foster an Australian coastal shipping fleet. This legislation will instead deter investment in a domestic fleet, erode the skills required of a maritime workforce and make Australia complicit in the exploitation of foreign workers.

As the MUA has noted in its exhaustive submission to the Senate inquiry, most of Australia's key defence and trading partners—the USA, Canada, Indonesia, China, Japan, Brazil, India, and the European Union—have maintained maritime cabotage, or preferential treatment for domestically flagged ships. The MUA also noted that 'Australian cabotage is already one of the most liberal in the world, and any further erosion will put Australia completely out of step with its trading partners and Defence allies.'

Just last month, I attended the 30th annual commemoration of the Allied Merchant Seamen's Association at the Flying Angel Club in Fremantle, and reflected on the service that Australian-flagged ships have provided to our country since 1885. In war and in peace time, Australian mariners have come to the aid of our country with no complaint and little recognition.

Operating in the area since 1987, North Star Cruises Australia has an intimate knowledge of the Kimberley coastline. In nearly 30 years of operation, the company has grown from three to 50 Australian employees and it takes seriously the responsibility of cultural and environmental stewardship by fostering and maintaining strong links with the traditional owners and ensuring the protection of coastal areas.

It has been the hallmark of this government to focus on undoing the positive reforms that Labor established, whether or not there is any pressing reason for doing so—and irrespective of the harm involved. This is another example. Coastal shipping and the viability of Australian owned and flagged vessels are important to an island nation like Australia. Pursuing an ideological vendetta against workers and unions and, indeed, against proud Australian businesses by forcing operators to seek a foreign flag and foreign workers for their ships is madness.