Anthony Albanese (Grayndler, Australian Labor Party, Shadow Minister for Infrastructure and Transport) Share this | Link to this | Hansard source

It is a fact of life in 2015 that governments must be constantly vigilant about safety and security in transport systems. This is especially the case with aviation. Anyone who remembers the terrorist attacks on the World Trade Centre on 11 September, 2001 will understand the horrible consequences of a terrorist attack on an aircraft. Travellers know only too well the levels of security checks that have become necessary in this day and age. Nobody likes the inconvenience, nobody likes the queues, but we all know that this is a serious business. Our approach must be based upon the principle of safety first, and it is not only about aircraft passengers. We need to ensure that our systems for handling air cargo are also up to date and efficient. And we have to balance that security requirement against the need to keep goods moving in the name of efficiency and productivity. The time involved in checking cargo is significant.

The Aviation Transport Security Amendment (Cargo) Bill seeks to grapple with the need to carefully balance the competing needs of public safety as well as keeping our economy moving. The opposition will be supporting this legislation because we believe it is in the public interest. The impetus for this particular change has its roots in our relationship with the United States of America. US law requires that all airlines transporting cargo into the US inspect each and every item, piece by piece. The US has noted that existing arrangements in Australia do not meet that standard. As a result, Australia has negotiated a two-year transition period, during which we will move to satisfy the US requirements.

This bill seeks to make industry a partner in this process, to smooth out the process in consultation with industry, as is appropriate. It establishes a Known Consignor category in the transport security regulatory network. This invests the responsibility to screen cargo with the shipper or originator of the goods and establishes a system that maintains security across the supply chain. It will mean that cargo handled by a Known Consignor will not need to be inspected at an airport. It is a case of working with industry to secure a positive outcome that maintains safety whilst boosting efficiency. In addition to this piece of legislation, the transition to a US-compliant system is already under way. Some businesses have already been approved to conduct their own security checks, away from airports, removing the need for double-handling at those airports.

I have said many times, in this place, as the minister for transport in the previous government and as shadow minister for transport now, that aviation security should be a non-partisan issue. We can have our arguments here about policy, about ideology and about politics. But when it comes to securing the safety of the travelling public, we should be on a unity ticket and we should take the advice of safety and security experts. Our joint policy of both the government and the opposition is safety first. Labor can always be relied upon to take seriously matters to do with aviation.

I was the minister during what became known as the 'undie bomber' incident all those years ago. I well recall the meetings over that Christmas and New Year period, where the world responded quickly and in a coordinated way to the perceived threat. I know from my experience in government that Minister Truss has also taken those responsibilities seriously. Whether in his current position as the minister or as shadow minister he has acted in a mature and responsible way. This is good legislation and I commend the bill to the House.

Matt Williams (Hindmarsh, Liberal Party) Share this | Link to this | Hansard source

I welcome the member for Grayndler's constructive comments on this bill and his emphasis on public safety and economic benefit derived from important initiatives, such as this Aviation Transport Security Amendment (Cargo) Bill 2015. A recent re-evaluation of Australia's air cargo security arrangements to the United States determined that they do not meet the required standards. This is part of the background to this bill, which I will now outline.

The United States requires by law that all airlines transporting cargo on passenger flights must examine 100 per cent of that air cargo at piece level. As such, the coalition government introduced this bill to ensure that Australian air cargo meets the security requirements for air cargo exports to the United States in the future. In terms of air freight and cargo, it is relevant for all states in Australia and all airports around Australia, particularly those larger ones. In my electorate of Hindmarsh I have Adelaide Airport—hence, the airport plays a significant role in the local economy and in my electorate, whether it be people employed at the airport or businesses surrounding the airport.

In terms of the details of this bill, this means that each individual box, carton or other item in a shipment must be examined by technology or physically inspected before it is loaded onto a United States bound aircraft. As the member for Grayndler mentioned, airport security is of paramount importance—more so with the terrorism we have had to confront not just over the last few years but back to September 11, almost 15 years ago. That is a bit of history for you, Mr Deputy Speaker Irons, that I am sure you are aware of, being the knowledgeable man that you are.

The amendments proposed in this bill support our efforts to meet the US security requirements. Importantly, we are partnering with industry to implement the new security requirements. This strategy has two elements that will allow exporters to choose the most effective methods for their businesses. As we know, export and trade are important elements of our economy as we seek to service the growth economies of the world not just in Asia but also in the US, which is often the strongest economy in the world and will continue to rebound, no matter what financial and economic challenges it faces.

The first part of the strategy is already being implemented with a number of businesses examining cargo, at piece level, by X-ray before it gets to the airport cargo terminal. The second part of the strategy is being supported by amendments in the bill that create the legal authority for the establishment of a Known Consignor scheme. While this bill will make sure that Australia's $4.8 billion worth of air freight exports to the United States can continue, the Australian government has secured an agreement with the United States that recognition of our national cargo security program be extended to July 2017. This means that Australian air cargo to the United States can continue without disruption while transitioning to the new arrangements.

This bill also ensures that our air security arrangements are consistent with international standards under the Chicago convention. The strategy not only meets the requirements of the United States; it also meets anticipated requirements of our trading partners. If these measures are not implemented, industry will have no choice about how to meet the new security requirements set by the United States, as the Transport Security Administration has made it very clear that it will not accept air cargo unless all of it is screened at piece level. The Australian government has an ongoing commitment to ensuring the security and safety of Australians and Australia's interests. We also remain committed to maintaining and growing Australia's international trade.

In terms of trade, I want to return to speaking about Adelaide Airport for a moment and some interesting figures from the last 15 years. Adelaide Airport has increased the number of international passengers four times, and total passenger numbers have doubled over that time. So congratulations to Adelaide Airport and all involved for the significant success they have had over the last 15 years. In terms of freight and cargo, the topic of this bill, over 8,000 tonnes of freight are exported from Adelaide Airport every year—over $400 million. This is significant in its own right, and there is optimism for the future as we seek to export more trade to the fastest economies in the world, and in particular to Asia, utilising the trade agreements.

In terms of the airport I consult with key residential bodies associated with the community who keep in regular contact with me about matters pertaining to their suburbs but also some things that might come up from time to time about the airport. I want to congratulate some of the local residents' associations, like the neighbourhood watch groups who engage constructively, not just with me but also with Adelaide Airport, on ongoing issues that may arise. For example, there is the Netley Residents' association, and Bob Owen makes some positive contributions there about how to improve the local area around Netley. I want to commend Bob and the Netley Residents' association on their important role.

One example that came up recently was about a parcel of land which was located next to a creek and which the airport, SA Water, the local water authority, and the council all had a role in maintaining. The parcel of land had some issues with snakes and a local children's playground. After some conversations between all stakeholders, it was resolved to amend the maintenance of the land and the way it was constructed. I want to congratulate all parties on that very constructive outcome. Attending the Netley Residents' association recently, I found they had a strong interest in many local issues. I congratulate them again for their good work. They are committed to a better community and they work to engage key stakeholders.

I also attended the Camden Park Neighbourhood Watch group last Monday night. They are another good local association that takes interest in issues affecting their area. They are close to the airport. They do not have as many issues with the airport as some other associations do but they still play a very constructive role on local matters, whether they be crime related, safety related or general wellbeing in the community. They asked some very good questions last week. So I congratulate Rosalie and the committee on the good work they are doing, and I look forward to supporting them further in the future.

On neighbourhood watch, I want to mention Lockleys Neighbourhood Watch, which borders the airport, and is very active on many local issues, including noise and traffic at the airport. I have had a number of conversations with key members of that committee. They turned 30 in recent times and had their 30th birthday celebration last weekend. Unfortunately, I was unable to make it but I wish them well and look forward to further engagement with that body. I congratulate the local councillors involved in that association—in particular, Rosalie Haese and Garth Palmer for the good work that they do with the Lockleys Residents' association as they do with Reedbeds, West Beach Neighbourhood Watch and the many other residents' associations in the area. They are all surrounding the airport and have links to the airport. With that, I end my contribution to this debate. I thank my colleagues for their contributions as well, and I commend this bill to the House.

Steve Irons (Swan, Liberal Party) Share this | Link to this | Hansard source

Thank you to the member. It is always a good idea to compliment the Deputy Speaker, as you did during your speech. I call the member for Lyons.

Eric Hutchinson (Lyons, Liberal Party) Share this | Link to this | Hansard source

I appreciate the opportunity. Like the member for Hindmarsh, I also have pleasure in rising to speak on this bill, which relates to something that is important to pretty well all of us in this place, and that is trade and access to markets. This legislation, the Aviation Transport Security Amendment (Cargo) Bill 2015, specifically relates to air freight. Specifically, it is a measure that the Australian government has had no choice but to implement, given the requirements that have been put in place by the United States government in terms of an obligation that we now have; if we want to trade with that very important market, we must have the capacity to scan every container—every box—that leaves Australia that is destined for the United States. One hundred per cent of all the parcels will need to be X-rayed before they leave Australia.

There are two mechanisms by which this can occur. One is off-airport examination of cargo by approved freight forwarding businesses. That is one option for exporters. The second option is the establishment of a known consigner scheme that export businesses can join. Both of those mechanisms will provide the opportunity for businesses that are currently trading. Indeed, we would hope that, as the quality of Australian produce all around the world is increasingly understood, there would be more opportunities for more goods from this country to enter the US market.

You will be interested to note that it does have no impact on the US free trade agreement and the criteria under which that was signed. You may also be interested to note that there was $4.8 billion worth of Australian produce and goods exported by air to the United States last year. Whilst they are an obligation now, as a requirement set by the United States, it is logical that we undertake these changes locally—in effect, pre-planning for other countries that may well, in due course, require similar requirements. I think particularly of the possibilities that may occur under the Trans-Pacific Partnership agreement that has been concluded as the fourth leg of the quadrella by the Minister for Trade and Investment. With the 12 countries involved in that, and given the initiative that the United States has taken in this space, it is likely that there will be others in due course. It applies not just to Australia, of course, but to all countries that wish to export goods into the USA. So it is not, in any way, discriminatory. Their reasons are, of course, based around the legitimate concerns that, as citizens of the world, we all have with respect to security.

This gives me a chance to ponder the events that occurred in Paris, 'The City of Light', in the past week and how—although one would hope that it would not do—it has really changed the world in such a profound way. It was a senseless attack not just on those who were tragically killed and or tragically injured but on humanity. From whatever quarter you come from around the globe, whatever your faith, whatever your colour, there is a fundamental thing that makes us all human beings. I think that was challenged by these evil people who seek to divide. It has been reassuring to see right across this country and the world an absolute condemnation of what was an attack, ultimately, on humanity. We cannot stand for that.

The capacity to respond in a timely manner also provides a competitive advantage for our country at this juncture. We will certainly be looking to take advantage of that. I think specifically of my home state of Tasmania. I think particularly of the expansions occurring in our two major airports. There are, of course, other airport facilities up on the north-west coast of Tasmania, at Devonport and Wynyard in the electorate of my colleague the member for Braddon. Launceston Airport, it may surprise you to know, is actually in the Northern Midlands in the electorate of Lyons. It was very encouraging in recent weeks to hear an announcement that Launceston Airport was now part of a code-sharing arrangement. That arrangement will allow passengers travelling from China with China Eastern Airlines to have electronic tickets right through to Launceston. This is going to present an enormous advantage for passengers who may want to visit the place where their President and his wife, Madam Peng Liyuan, took time to visit in our state last year. So it will make it easier for those people looking to follow in the footsteps of President Xi Jinping and his wife. Also, it provides an opportunity that has been apparent in other parts of the world, particularly the Middle East, concerning the bellies of these aircraft as they head back to their point of origin. In this case, with China, opportunities will open up for trade and for food and other products to be taken back to those markets. Most evident to me recently was the experience of Tasmanian Quality Meats, a business in the Northern Midlands. It is a business that has grown. It was the Australian Regional Exporter of the Year in 2013. It has built a business in more recent years very much on the changing path of aircraft travelling via the Middle East into European destinations. The business has grown enormously in terms of being able to supply chilled meat and other similar products into that important Middle East market. Of course, these are opportunities that also lay in North America.

The undertaking by the government to put in place the necessary facilities for off-airport examination of cargo by approved freight-forwarding businesses and the establishment of known consignors—a recognised scheme internationally—will come as no surprise to those companies involved in freight-forwarding and other things. For Australian exporters—and I think particularly of my home state and producers of berries, horticultural products more broadly and seafood—I am sure there are willing customers. They may not yet know it, but in due course they will be very excited customers when they realise that they can source such high-quality and excellent produce from the island state—the south island, as we sometimes refer to it.

On that note, this is a necessary but important piece of legislation to put in place those things that are required by that important market in the United States to make sure that our exporters have the opportunity to supply high-quality goods to that market on an ongoing basis. Thank you for the opportunity to contribute to the debate.

Darren Chester (Gippsland, National Party, Assistant Minister for Defence) Share this | Link to this | Hansard source

It is my great pleasure to join the debate on the Aviation Transport Security Amendment (Cargo) Bill 2015. I congratulate the member for Lyons on his contribution. I listened with great interest; I always listen with great interest when my southern colleagues from Tasmania have something to say. We are almost neighbours; only Bass Strait stands between us.

Eric Hutchinson (Lyons, Liberal Party) Share this | Link to this | Hansard source

Indeed!

Darren Chester (Gippsland, National Party, Assistant Minister for Defence) Share this | Link to this | Hansard source

You live in a particularly beautiful part of Australia, and I look forward to visiting in the near future.

The Australian government clearly has a key responsibility to ensure the safety and security of Australians and Australian interests. Also, most obviously, the federal government has a responsibility in relation to international trade and our nation's economic links, and this government, to its great credit, has put jobs and economic security, along with national security, at the very core of its being. From time to time—and I am sure, Mr Deputy Speaker Irons, you have experienced it yourself in your own beautiful electorate in Western Australia—there is some level of confusion amongst perhaps primary school or secondary school students or even some constituents who are not entirely sure what level of government is responsible for each particular area of public interest in Australia. But there is no confusion whatsoever when it comes to state and federal responsibilities for international trade or national security or defence more generally. So it is with great pleasure that I participate in tonight's debate, because it deals directly with issues relating to safety and security as well as our trade interests in a global sense.

Safety and security through our airports, whether through the safety of passengers on board aircraft, which the member for Lyons referred to previously, or cargo and freight screening more generally, has been an area that has traditionally enjoyed bipartisan support in this place. Understandably, no government, whether of the Labor Party persuasion or from the Liberal-Nationals coalition, would seek to score political points on issues of aviation security. So I am pleased that this is a non-controversial piece of legislation that has the support of those opposite and obviously has the support of the Liberal and Nationals parties.

I do note and commend the previous government's work in the area of aviation security screening procedures, where it did make some changes as they became necessary. No government necessarily knows in advance what is going to be expected of it in a changing security environment or in response to requests made by some of our trading partners. While responding to the circumstances and conditions in which we live and maintaining the safety of the passengers and crews on commercial flights is one of those critical issues, we must also provide the same level of security to our cargo operations.

I commend the Minister for Transport and my colleague the Leader of the Nationals, Warren Truss, on bringing this legislation to the chamber, because it provides some certainty for Australian businesses operating in an international environment. A recent re-evaluation of Australia's air cargo security arrangements to the United States determined that they do not meet the required standards. The United States—obviously one of our nation's most important trading partners and one of our most strategic alliances in terms of the defence force, in which I am directly engaged, and with whom we have a highly valued relationship—requires, by law, that all airlines transporting cargo on passenger flights must examine 100 per cent of that air cargo at piece level.

Thus the coalition government, with the support of those opposite, introduced this bill, the Aviation Transport Security Amendment (Cargo) Bill 2015). The bill will ensure that Australian air cargo meets the security requirements for air cargo exports to the United States in the future. This will mean, quite importantly, that each individual item of freight, whether a box, a carton or another item in a shipment, must be examined by technology or physically inspected before it is loaded onto a United States bound aircraft. And as the member for Lyons quite correctly indicated in his contribution here this evening, there are options for how you fulfil those legislative requirements.

The amendments proposed in the bill before the House this evening support our efforts to meet the US security requirements. Importantly, the government is not acting alone in this regard. We are partnering with industry to implement the new security requirements over the coming years. The strategy, as we have heard this evening, has two distinct elements which will allow exporters to choose the most effective method for their individual businesses. There will be the opportunity for an off-airport examination of cargo by approved freight forwarding businesses and also the establishment of what is called a known consignor scheme that export businesses can join.

The first part of the strategy is already being implemented, with a number of businesses examining cargo at piece level by X-ray before it gets to the airport cargo terminal, therefore removing the need for screening at the airport. The second part of the strategy is being supported by amendments in the bill which create the legal authority for the establishment of the known consignor scheme. As I said, the government has an ongoing commitment to ensuring the safety and security of Australians and Australian interests. We also remain committed to maintaining and growing Australia's international trade interests. On that point, without any hesitation I indicate that the current government, the government for the past two years, under the prime ministership of Tony Abbott and now under the prime ministership of Malcolm Turnbull and the leadership shown by Andrew Robb, the trade minister, has been very successful in negotiating trade outcomes with China, Japan and Korea, which are of particular importance to my electorate and I am sure yours in Western Australia, Mr Deputy Speaker Irons. The three free trade agreements—but, more specifically, the Chinese free trade agreement—are of great benefit to the dairy sector in Gippsland.

It may not be well known, but the dairy industry in Gippsland produces in the order of 23 per cent of Australia's total dairy product. There is an ongoing argument between myself and the member for Wannon over which electorate produces the most of Australia's total dairy productions. It turns out they both produce 23 per cent, which is somewhat disappointing for myself and the member for Wannon as we are competitive in a whole range of pursuits, from marathon running through to our praise of our own electorates, and it turns out we have tie on this occasion.

The free trade agreement negotiated with China is going to be very significant for the Australian dairy industry. A few weeks ago I had the great opportunity of attending a suppliers meeting, held by Murray Goulburn, in my electorate on the banks of the Snowy River at Marlo. The chief executive officer of Murray Goulbourn, Gary Helou, was particularly enthusiastic in his praise of the government's ability to negotiate a trade agreement with China which will provide enormous opportunities for Murray Goulburn into the future. I raise that point in relation to tonight's debate regarding aviation cargo freight security for a very important reason: the dairy industry is changing. It has been very much a community based industry, with bulk product through the Port of Melbourne, but there are ambitions within the dairy sector to grow the ready-to-eat food products which will have a high yield, particularly into Asian markets and into markets where we have a growing middle class which values very highly the Australian product. I believe there will be more opportunities in the future to transport the dairy products through the aviation sector.

It is important that we get our security arrangements right, and that is why tonight's bill is significant for the people of Gippsland, even though we do not have an airport of that capacity at the moment. That is something that we are aiming to address. I thank the minister for transport who was in Gippsland last week. He is a keen aviation enthusiast and he took the opportunity to come to Gippsland and inspect and officially open some improvements to the Latrobe Valley airport. It was a significant occasion. It means the Latrobe Valley is now well set up to become more of an aviation hub into the future. I congratulate the minister for taking the time out of his very busy schedule to visit Gippsland and gain a firsthand appreciation of the local community's interest in growing its aviation infrastructure, but also in looking for opportunities to further boost my region's economy.

The project we unveiled was a $4.24 million project. It involved $3 million worth of federal government funding, plus some assistance from the Victorian state government. It created more than 100 jobs during the construction phase. It is important because the Gippsland region is home to, I think, the only manufacturer of commercial aircraft in Australia, GippsAero, which has been producing the GA8 Airvan, known as the 'Ute of the Sky' for its capacity to carry a significant amount of cargo. It is manufactured right alongside the Latrobe Valley airport, which was upgraded with that federal and state government funding. The extent of the upgrade was very significant: it allowed for improved lighting, which is obviously significant in the aviation sector; it allowed for the development of additional aircraft hangars; and also allowed for infrastructure to support the manufacturing, as I referred to, and the emergency services which operate out of the airport.

We saw bushfires in the Gippsland region only last week. The capacity to base firefighting aircraft in the Latrobe Valley, in a central location, is critical. We rely very heavily on our aerial firefighting capacity and without the Latrobe Valley airport we would be in a very difficult circumstance. We have, quite possibly, the most important infrastructure in Victoria with the Latrobe Valley power stations, and we have the Australian Paper Mill, all located in close proximity of the Latrobe Valley airport. All those assets are exposed to the threat of bushfire and it is important to be able to rapidly deploy aerial firefighting aircraft, and that is one of the great advantages of having a centrally located airport like Latrobe Valley airport. I really appreciate the efforts made by the previous government in supporting some funding upgrades, the current government for actually delivering on those upgrades and the Victorian coalition government, which provided $1.24 million for the project as well.

I mentioned the Gippsland Airvan and it is appropriate to reflect a little bit further on that particular aircraft in the context of tonight's debate because the aviation sector is a critical part of regional Australia. Obviously we have a vast country and the tyranny of distance often works against us, but the capacity to move freight in a rapid manner and to move it safely, as described in this bill, is extraordinarily important to us, whether it is in the cities or in regional areas like Gippsland and the Latrobe Valley. I am very proud to have an aircraft manufacturer operating out of my electorate. It is based in the Latrobe Valley and it started in the 1970s. It was founded by Peter Furlong and George Morgan, and has been going ever since. There have been some ups and downs—and that was not meant to be a pun about aircraft. There have been times when production has been strong and there have been times during the global financial crisis when demand for aircraft dropped dramatically and the company was struggling to maintain its strong presence in the Latrobe Valley. The Airvan 8 and the Airvan 10, which are produced in Gippsland, have been very important for the rural and regional communities because of their capacity to deliver a large payload into some of the smaller regional strips. The company has seen some great growth in the GA8 Airvan since December 2000 and it is now under the ownership of Mahindra Airspace, an Indian based company, but it still employs a significant number of people in Latrobe Valley. That capacity to operate on short airstrips, in pretty basic conditions, for freight and passenger transport is a selling point that the Airvan relies very heavily on. It also has had some success in terms of sales into many parts of the Pacific and throughout Europe and the United States. It is a terrific aircraft for surveillance and it is a terrific aircraft for skydiving and for general aviation. I am keen to see opportunities for the aviation sector to grow in Gippsland and the Latrobe Valley and the key to that will be GippsAero and the work we do in partnership with Latrobe City Council on Latrobe Valley airport.

As I said, it is with pleasure that I join tonight's debate, and I take this opportunity to congratulate the government on acting in an appropriate manner in relation to two of the most critical issues that face our nation today. Safety and security—and national security more specifically—are things that we in this place all take very seriously, and that was brought home to us recently with the attacks in Paris and the attack on the Russian airliner.

Aviation security screening procedures, whether they be for the safety of passengers or that of the crews associated with cargo operations, are critical, and I think the measures in this bill will serve our nation well in the future. I congratulate the minister on the work he is doing in this regard and I commend the bill to the House.

Craig Kelly (Hughes, Liberal Party) Share this | Link to this | Hansard source

It gives me great pleasure tonight to speak on the Aviation Transport Security Amendment (Cargo) Bill 2015. Before I was elected to parliament, one of my jobs when I was working for my small family business was organising the airfreight exports. At that time we were exporting quite a lot to the Middle East, America and South-East Asia, and the reason we had to use airfreight rather than sea freight was that, in the market we were working in, our customers often needed the goods immediately, or we needed to get samples to one of our sales representatives working over in the Middle East as quickly as possible. In all competitive markets, time is money. That is why the airfreight services that we have throughout the nation and the associated infrastructure we have set up to work as efficiently as possible are important to all exporters.

I remember there was always a rush to get goods over to the Middle East, to Dubai and Abu Dhabi, to catch our agent over there, and the Emirates flight at the time used to depart out of Sydney at eight or nine o'clock. So it was always a race in the factory to get the goods off the production lines, get them into the packing department, get them finished and then get them to the airport and on the Emirates flight out that night. A couple of times I had to jump in the truck, or one of the vehicles or wagons, and take the goods down myself. The process was that you would take them firstly to the airfreight forwarder that was handling the consignment and you would organise all the documentation there, they would put all their stickers on, and then either their truck would run them around to the airport at Kingsford Smith or you would take them round yourself. That is something I did several times.

I remember, back then—this was before the attack on the Twin Towers—having some concerns about the security arrangements. Here I was, taking dozens and dozens of boxes directly to the airport. I knew what was inside them, but I thought: how much security did they go through; should our security processes be a bit more stringent? Ultimately, it is a balance between the need for speed, for exporters to get their goods onto those planes as quickly as possible, and the need to have appropriate security checks in place.

That was another age. Today we live in an age of international terrorism where, in almost every Western country in the world, there are people that wish to engage in terrorism and cause us harm. It was just over a fortnight ago that a Russian plane leaving Sharm el-Sheikh in Egypt—the coastal resort there—full of holiday-makers and tourists heading back to Russia, came down. It looks like something was possibly smuggled onto that plane in the luggage. These threats are real.

The security arrangements for our airfreight are very important, because something that is not widely known is that most of the airfreight that leaves Australia does not go in the large cargo planes; it actually goes in the belly of passenger aircraft. So airlines flying passengers overseas use the bellies of their 747s and their wide-body jets to carry a lot of freight.

That is why we should continue to have as many open-skies policies as we can, with as many countries as we can. If we can get more people, more tourists, flying between countries and have arrangements with more nations for their airlines to fly into Australia and give us reciprocal rights, then there will be more airlines in the air. The more airlines there are in the air, the more room there is for cargo; the more room there is for cargo, the lower the price is. The freight price comes down. That is essential to many of our exporters, especially in the area of fresh produce, where freight costs become a major component of the price. The more we have open skies, the more planes we have in the air, the more tourists we have coming in and out of the country, the greater our capacity to have airfreight going in and out, the greater the opportunities for exporters, the greater the job opportunities and the greater the prosperity in this nation.

At that time, I was also exporting to the USA. I remember that the USA changed some of their regulations after the terrorist attack on the Twin Towers. The USA, rightly, for the air cargo going into their nation, have the right to set special arrangements and special requirements, and that is what this bill actually addresses.

The bill amends the Aviation Transport Security Act 2004 to strengthen air-cargo security arrangements to ensure continued access to the US market for Australia's exports. This will be done by establishing a known consignor program, streamlining air cargo clearance and enhancing air cargo examinations. These amendments are required for Australia to meet what are called the peace-level screening requirements of the US Transportation Security Administration, known as the TSA, for Australia's air cargo exports to the USA, which were worth $4.8 billion per annum in 2014. In 2014, $4.8 billion worth of Australian goods were just air freight exports to the USA. I saw one study that said that 25 per cent of all Australian exporters have airfreighted goods to the USA.

The US has confirmed a known consignor scheme involving examination and screening of the cargo at source and an enhanced air cargo examination by technology will be required in the short term—to be operational within two years—to maintain market access to the USA. This bill is required to implement these changes quickly and to give industry time to adjust to the new arrangements. The bill will introduce the concepts of a 'known consignor' and a 'regulated agent' under the act, clarify clearance criteria for cargo and provide an authority for authorised businesses to open and examine air cargo, when required, to prevent unlawful interference to aviation.

There will be some costs to industry for this. It will add a little bit more red tape and more bureaucratic regulations, but, in the environment that we are operating in today, unfortunately these are necessary arrangements. Our air cargo security framework is compliant with the current obligations set by the International Civil Aviation Organization. The framework is commensurate with our risk profile. All outbound air cargo must be examined and handled securely before it can be uplifted onto an aircraft. The requirements of the USA's Transport Security Administration go above and beyond the requirements of the International Civil Aviation Organization. The government is now working to address the US requirements without imposing a regulatory burden on other export destinations. We can expect other countries to begin moving in the same direction over time. Unfortunately, it is a fact that the US have had to put these regulations in. We would like to think that, sometime in the future, they could reduce them. But the reality is that these regulations are going to be in for quite a long time, and it is more likely that other nations will require very similar regulations to be imposed on airfreight imports into their countries.

The US TSA approved Australia's air cargo security arrangements in 2012. At the time, there was no indication that Australia's current export air cargo security arrangements were considered unacceptable to the TSA. This was the case until the results of their re-evaluation were received in December 2014. This government has responded quickly to the TSA requirements and has successfully negotiated a two-year extension, ensuring that industry has the time to adapt to these new arrangements. The department has already facilitated enhanced air cargo examination by technology at major freight-forwarding facilities, ensuring a percentage of cargo has been examined at a piece level. Furthermore, the department is engaging in the known consignor trials to prepare targeted exporters for transition to the new framework. By focusing on the new proposal on US-bound cargo, the government is limiting the impact of the new security measures on industry. The department is also working with the Department of Agriculture and Water Resources and the Department of Immigration and Border Protection to harmonise regulatory requirements and leverage existing practices to lower the likely impact.

The previous government's securing of the air cargo supply chain framework required 100 per cent piece-level examination for export cargo, regardless of destination. Piece-level examination means that, where an exporter has a palette of goods and the goods are packed up on the palette—and, depending on the size of the carton, there could be up to 20, 30, 40, 50 or even more cartons on that one particular palette—that palette actually has to be broken down, with every single one of those individual cartons put through a scanning process. This is very costly. It is highly labour intensive. Unfortunately, it is a method that will be required in some cases if we are to keep our air cargo flying to the USA.

In 2014, after a review of the current risk environment for all export air cargo determined the risk to be low to very low, the department developed a lower regulatory and cost model based on enhancing the existing regime. The current proposal to require a 100 per cent piece-level examination for all US bound cargo will not require a wholesale change to the exporter sector. It is a targeted policy setting which will address the TSA requirements to minimise regulatory cost while maintaining important access to the market.

This piece of legislation is important to keep that supply chain operational and functional while also having the security there. The airfreight export industry is one of our most important industries. We need that working efficiently and effectively. If we look to the future, with the three free trade agreements that this government has struck with Korea, Japan and China, the future for goods being exported into those nations is virtually unlimited. This morning, we were at a breakfast with the company Blackmores—the vitamin manufacturer in Australia. They basically said that they can sell as much as they can produce. Their biggest problem at the moment is trying to meet the growing demand from Asia. These are the opportunities that we have for Australian businesses. If businesses are going to make every post a winner with these opportunities, we need an efficient sea freight export system and an efficient airfreight export system. This is exactly what this bill will do.

Over the time I have spent working with many of the freight forwarders involved in the airfreight industry, I have thought what a wonderful job they do and how efficient they are. It is a highly competitive industry and, generally speaking, I would say they give excellent service to this country's manufacturers and exporters. Yes, there is a little more red tape. Yes, there is a little more cost involved for exporters. However, we do have to get that balance right. We need to balance the need for speed—for exporters to get those goods as quickly as they possibly can to their customers and markets—with the risk of security. I wish legislation like this were not necessary; but, unfortunately, in the world that we live in today, it is just one of the things that we have to put up with. I commend this bill to the House.

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

I rise to speak on the Aviation Transport Security Amendment (Cargo) Bill 2015. As previous speakers have acknowledged, there are very genuine reasons for this legislation. The events concerning the World Trade Centre, as we know very well, prompted the US to require this legislation. It was the 9/11 act that brought about this situation where 100 per cent of all cargo that is being transported on passenger aircraft departing or coming in to US airports is screened. The world was horrified when it saw the events of 9/11. Since then, we have seen continuing terrorist activity. As members before me have pointed out very eloquently, none of us particularly likes the additional red tape or any of the cost that goes with this type of legislation, but it is definitely necessary.

There has been a tranche of legislation whereby the government has taken measures in relation to the ongoing security threats that we as a nation and other parts of the world now face. It is very sobering. When I looked at this legislation and at the events of the last nine days in France and Europe, I saw the ongoing terrorist threat. I even consider the MH370 as one such incident. As we know, it was on a flight from Kuala Lumpur to Beijing. We are yet to find out exactly what happened to that aircraft. It may or may not have been this type of incident; but, as yet, we do not know. Western Australia has been central in assisting with that search. Australia is doing all it possibly can there.

Public safety, as well as the cargo itself, is something that we cannot afford to take lightly. Given events of recent times right around the world, I do not think there is anyone who takes the issue of safety, particularly air safety and air cargo safety, lightly. It is on that basis that the government has introduced this bill. When we talk about our trade opportunities, in no way do we want to compromise the opportunities of our growers, producers and manufacturers—all of those who are seeking to trade right around the world—through not only the three free trade agreements but also the Trans-Pacific Partnership.

The other issue that was raised which I think people do not understand terribly well is that so much of the cargo that exits goes out in the belly of a passenger aircraft. That is another reason why the level of security as required in this bill is so important. A recent re-evaluation of Australia's air cargo security arrangements determined that they do not meet the standards that the US requires. After 9/11 they were the requirements placed by the US. By law all airlines transporting cargo on passenger flights are required to be examined—100 per cent of the cargo, and rightly so. We have seen far too many incidents to take this issue lightly. Others members have pointed out that as members of parliament we travel a lot, as do so many of the public. So, not only those who send out cargo will be affected by delays and the cost of additional red tape. Members of the public will also become extremely frustrated. As we know, when people are at an airport , particularly if they are running a little bit late and their flight is not far off from leaving, they find it very difficult when they are selected to be screened by the Customs officials. This is the level of security that is now required in the world in which we live, and that in part underpins the need for this legislation.

We have to make sure that, in the future, all Australian air cargo meets the security arrangements and requirements for air cargo exports to the United States. This means that each individual box—a carton or any form of container—or any item has to be examined by technology. We have seen terrorists be particularly creative. When I was in Afghanistan in 2011, I saw some of the very creative improvised explosive devices that were being used there. They have an extremely creative capacity that we should not underestimate. We take the security of people and cargo very seriously, as we should. These are the very reasons why each of the containers has to be screened by technology or physically inspected before it is loaded onto a United States bound aircraft. This legislation supports our effort to meet the US security requirements. When I look at what is produced out of the south-west and goes not only interstate but around the world, I do not want to see any of those opportunities lost to producers or manufacturers in my part of the world or elsewhere in Australia.

There is a partnership that the government has with industry to implement these new security requirements. It will allow exporters to choose what is the most effective method for their particular businesses, and it will be different from business to business. Whether it is an approved examination away from the airport—but it will have to be approved—an approved freight-forwarding business or the establishment of a known consignor scheme that the export businesses can join, we need to make this as efficient as we can for the exporting businesses whilst meeting the requirements of US security. There are a number of businesses examining cargo at a piece-by-piece level with X-ray before it gets to the airport cargo terminal. Therefore, there is no need for screening at the airport itself.

The second part supported by sections in the amending legislation creates the legal authority for the establishment of the new known consignor scheme. Continuing to work with industry to try to limit the amount of costs, inconvenience and red tape while still meeting those security requirements is part of what we need to do to establish these particular protocols. The known consignor scheme is an internationally recognised method of meeting our air safety cargo requirements from the early part of the supply chain through to the ultimate loading onto an aircraft. I think we are all aware of the need for that level of security and transparency in the process and of the need to be accountable all the way along that particular chain. The scheme provides an alternative means of securing air cargo from unlawful interference, compared to examination using X-ray or other technologies. As I said earlier, there are very creative efforts in this space, so the need for very sound processes and very good technology is never more relevant than right now.

I had a look on the US site and I saw that their national strategy is for a global supply chain of security. Their two goals are to promote the efficient and secure movement of goods, which is what we are doing with this bill, and to foster a global supply chain system that is prepared for and can withstand evolving threats and hazards and can rapidly recover from any disruption. I think all of us in this place understand the great threat that the US faces. It is a primary target. Nothing made that more obvious to the world than 9/11, and wherever the US is around the world—whether it is an embassy, for instance, or an office—you will see a level of security that is possibly not replicated by other nations. The threat and risk to the US is that which we saw with 9/11. So, for our producers and manufacturers to continue to be able to export, we need the level of security provided by this particular bill. This is to make sure that the $4.8 billion worth of air freight that we export to the US can continue into the future.

In recognition of our national cargo security program, we have secured an agreement with the United States to extend that export to July 2017. This means simply that Australian cargo to the United States can continue without any disruption whilst transitioning to the new arrangements, and this is really important. We do not in any way want to interrupt businesses' existing arrangements, our existing export channels and the produce that is going out—the products, manufactured products and a whole raft of different products that are being exported to the US. There are many companies that are relying on a smooth transition, and the intention is that we certainly give them that opportunity throughout this process. The bill ensures that our air cargo security arrangements are consistent with the international standards that I spoke about earlier under the Chicago Convention. The strategy not only meets the requirements of the US; it meets any anticipated requirements of our trading partners. Given that we have concluded three free trade agreements, these will be particularly relevant and important ahead.

If the measures are not implemented, industry will have no choice about how to meet the new security requirements set out by the United States, as the Transportation Security Administration has made it very clear that it will not accept any air cargo exports unless all of it is screened at a piece-by-piece level. I do not think there is anyone who could question this, and I do not think any of us who get on aircraft at any time would have any issue with this level of screening and security. Even though MH17 was a different set of circumstances, and different, perhaps, from MH370, every time we see an incident like this—and we have seen too many of them—because we live in such a global environment, it is almost inevitable that there will be people from all over the world on that flight, and there is often an Australian as well. Irrespective of where people come from, we take their security very seriously, and all of us have noticed a greater expectation of government in regard to national security issues in recent times, not just in these last two weeks but in the whole period of a range of different terrorist attacks and threats.

I am very pleased to support this legislation. I commend the work of the minister and his people in this space. I recognise the additional issues facing business and industry in this space. We are working very hard to ensure that the cost and red tape are kept to a minimum whilst meeting all of the requirements that are needed to meet the export and security requirements of the United States. I commend the bill to be House.

Steve Irons (Swan, Liberal Party) Share this | Link to this | Hansard source

I rise today to discuss the Aviation Transport Security Amendment (Cargo) Bill 2015, the changes it proposes and its importance to the industry. I thank the member for Forrest for her contribution. As Western Australians we spend a lot of time at airports and travelling, so the security of airports and air cargo is very important to us and all other aviation travellers around the world. It is about knowing that the cargo in the planes we travel on is secure and safe and does not pose any threat.

The government has an ongoing and solid commitment to the safety and security of Australia's interests. We have developed a strong history of improving and maintaining Australia's international trade relationships and prospects. Although this bill is about safety and security, it also has a strong commitment to the economy, which is important to Australia because we are such an isolated country. Having an airport in my own electorate, I know how important it is to the economy in Western Australia. That is why we have seen this government continue to fund the Gateway upgrade. I see the former assistant minister for infrastructure is here. He was an important part of that and has visited the particular area many times. He knew how important it was to continue with that Gateway upgrade. The fact that we were able to do it without a mining tax was a credit to the government and the budget process that it put together to make sure that it continued the important work for the infrastructure around the Perth Airport.

The Aviation Transport Security Amendment (Cargo) Bill 2015 is another step towards this and also ensures Australia's cargo security processes conform to international standards. I would like to provide the House with a brief history of Australia's air cargo security. Since 1996, we have had a number of arrangements in place to regulate and maintain the security of goods being transported as air cargo. In 2006, the Accredited Air Cargo Agent was established. This scheme provided more flexibility in the regulatory framework for any persons involved in the handling or transport arrangements for air cargo. However, since then, international law has continued to evolve and we need to adapt our legislation to ensure we remain compatible with international trade partners.

The bill amends the Aviation Transport Security Act 2004 by developing a known consignor and a regulated agent and ensures our laws are consistent with Australia's obligations under annex 17 of the Chicago convention. Australia's airfreight export to the US is worth $4.8 billion. Despite international airfreight comprising 0.1 per cent of Australia's total merchandise trade by volume, it makes up more than 21 per cent of Australia's total trade by market value.

Just to support those figures, last week the committee I am involved with visited Melbourne Airport's cargo area. The staff spoke about 32 million passengers a year coming through there and also the fact that over 90 million packages arrive in Australia every year, which makes it very difficult to screen them. We were lucky enough to see a screening process performed. During that process some illegal substances coming into Australia were picked up. That is how important the screening process is in continuing to make sure that our security and safety is supported.

Over the next five years alone, Australia's outbound international airfreight is expected to increase at an annual rate of 4.1 per cent. It is a significant section of our trade market and now, following the implementation of this bill, will continue to function without disruption. The bill effectively establishes a regulatory framework which safeguards against unauthorised interference. It achieves this by imposing a number of obligations or requirements that need to be met by persons involved in or engaged with civil aviation related processes.

United States law requires 100 per cent of all air cargo on passenger flights to be examined at piece level. As we heard the member for Hughes explain before, that means that every carton, no matter whether it is sealed or part of a group, has to be taken apart and, regardless of weight or size, physically inspected or scanned by technology prior to being loaded on an aircraft bound for the United States. In a recent evaluation of Australia's air cargo security, the US found our arrangements fell short and did not meet the standards they require. It is imperative that we take urgent action to ensure this industry and its role in our economy are not interrupted.

Due to Australia's unique geography and the long distances between us and our trading partners, the air cargo industry remains a vital component of the broader industry. Small, medium and large businesses Australia-wide that are exporting to the US cover multiple industries and commodities, all of which will be impacted on greatly if these amendments are not implemented. Many exporting businesses across Australia would find significant difficulties in finding alternative routes to not only the US but other states that will require stricter regulation of air cargo security in the future. This would come at a detrimental cost to Australian businesses and, in turn, the Australian economy.

Another area of cost could be that of Australia's national security. The United States 9/11 act passed in 2007 saw the implementation of security screening on all air cargo carried domestically on passenger aircraft. In 2010, these requirements were extended to all international air cargo coming into the US. However, Australia was granted some lenience, allowing our exporters to operate in line with the air cargo security framework I mentioned previously. In 2014, the US re-evaluated its security arrangements for US-bound air cargo, and recommendations were made for all pieces to be examined. It is in response to these changes that these amendments are necessary. Also last year, the department, in consultation with stakeholders and intelligence agencies, prepared a security risk assessment of export air cargo in Australia and found that it could be a possible target.

In the current security climate, the use of improvised explosive devices—IEDs—is not unlikely. To prevent this and to further strengthen existing security measures, the amendments proposed in this bill are essential. The minister and his department have provided a two-year time frame in the amendments for the implementation of all changes. This will allow all parties involved in the industry or affected by the changes adequate time to adopt the new security measures outlined in this bill and, in turn, conform to the international standards required. The government has also secured a bilateral agreement with the US that will see our national cargo security program extended until 2017, effectively allowing transition to these arrangements without disruption.

The two-part strategy, as previously discussed by the minister, will see approved businesses given the ability to examine air cargo off airport. This element of the bill is already in the process of being implemented and, by all accounts, is working effectively. This process is legally recognised under the Aviation Transport Security Regulations 2005. All cargo examined through this process will not be subject to any further examination at cargo terminals at Australian airports.

The second, and perhaps the most important, element of the amendment bill is the development of a known consignor scheme under the Aviation Transport Security Act 2004. The amendment bill also introduces a definition of a 'known consignor'. For the benefit of the House, the known consignor scheme is an internationally recognised method of meeting air cargo security requirements. At the core of this scheme is the security of goods from the earliest points in the supply chain right up to their loading onto aircrafts. It is an international alternative to using X-ray technologies and the like to secure air cargo from interference.

This scheme effectively shifts the emphasis for practical implementation of security to the originator of the goods—that is, the shipper—very much like the trusted trader schemes that go on around the world. All goods are required to be produced, packaged and transported in a manner that ensures their security from unlawful interference from the point of origin and through every step until their delivery. Leading on from this, the amendments in this bill introduce an avoidance of doubt provision. In short, this will allow cargo to be opened or unpacked as part of the examination process. It is a clarification to the original bill and will ensure that it functions in line with the government's initial policy intention.

Not only will these amendments align Australia's air cargo security with international standards but they will also allow for a much more effective and highly efficient process for the industry and associated parties. They will also ensure that Australia is equipped to deal with emerging security risks in this particular industry. As mentioned previously, the amendments will see that our air cargo security arrangements are consistent with international standards under the Convention on International Civil Aviation. Not only will they ensure that our laws conform to US requirements; they will anticipate requirements for other current and prospective trading partners. The amendments will effectively ensure continued and stable access to international markets and allow Australia to maintain its global competitiveness. Again, this is fundamental to the maintenance and growth of the industry, and it is another example of this government's commitment to furthering international trade and economic growth.

The Transport Security Administration of the United States has clearly outlined that it will not accept any air cargo that has not been subject to screening at piece level. The measures outlined in the bill are the most effective way possible to ensure that we conform to these requirements. I would like to see these amendments implemented in full to ensure the industry continues to meet international requirements and sees Australia at the forefront of air cargo security.

I am confident that the two-year time frame suggested by the minister will provide ample time for a transitionary period and encourage all parties to do what they can to adhere to the move towards international standards. I would like to thank the minister and his department for their efforts in the development of this amendment bill, and also, particularly, the shadow minister for his support. I support the proposed changes, and I am certain they will be of great benefit to the industry and hold us in good stead as a long-term, international trade partner.

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

I thank all members who have contributed to this debate. It is a very important issue. While I welcome the bipartisan support for the legislation and recognise that it is, therefore, uncontroversial, it is important. Whilst I wish that we were not in a position where it has become necessary for us to further update security requirements, in this particular instance, to maintain our trade with the United States, it is clearly essential that we accept this legislation and the burden on industry that inevitably results from regulation of this nature.

The Aviation Transport Security Amendment (Cargo) Bill 2015 will ensure that Australian air cargo meets United States security requirements for air cargo exports to the US. The United States requires, by law, that all airlines transporting cargo to the US on passenger flights must examine 100 per cent of that air cargo at piece level. This means that every individual box, carton or other item in a shipment must be examined by technology or physically inspected before it is loaded onto a US-bound aircraft.

The US has recently re-evaluated Australia's air cargo security arrangements and determined that they do not meet US requirements. The amendments proposed in the bill support the government's strategy to meet the US security requirements, a strategy that will be implemented in partnership with industry. The strategy has two elements, allowing exporters to choose the most effective method for their businesses: off-airport examination of cargo by approved freight-forwarding businesses, and the establishment of a known consignor scheme that export businesses can join.

The first part of the strategy is already being implemented with a number of businesses examining cargo at piece level by X-ray before it gets to the airport cargo terminal, removing the need for screening at the airport. The second part is supported by the amendments in the bill. The amendments create the legal authority for the establishment of the known consignor scheme and clarify what is meant by cargo receiving clearance and being cleared for carriage through a secure supply chain. The known consignor scheme is an internationally recognised method of meeting air cargo security requirements, which focuses on ensuring the security of goods from early in the supply chain through to their ultimate loading onto an aircraft. It provides an alternative means of securing air cargo from unlawful interference compared to examinations using X-ray or other technology.

The amendments mean that Australia's $4.8 billion worth of airfreight exports to the United States can continue without disruption. The amendments also mean that Australia's air cargo security arrangements are consistent with international standards under the Chicago Convention. Therefore, the government's strategy not only meets US requirements but will meet any anticipated requirements of our trading partners. The government has an ongoing commitment to ensuring the safety and security of Australians and Australian interests. The government is also committed to maintaining and growing Australia's international trade, and this bill supports this commitment.

Again, I thank those who contributed to the debate for their contributions in relation to the importance of Australia's trade not only with the United States but around the world. While the vast majority of our trade and our freight is naturally carried by ship because we are an exporter of large volumes of freight, particularly minerals and agricultural products, there is an important and growing industry which relies on freight by air to meet markets in a timely way. This is particularly true in the areas of fruit and vegetables, fish, and other consumables, but it is also important for the supply of sophisticated parts and machinery—the sorts of things that keep business operating in a smooth and efficient way. So it is absolutely essential that we have an airfreight industry that is not only able to deliver on the task in the physical sense but able to meet the international requirements. The US have adopted standards. Those standards are at a level beyond what we have been used to but they are standards which we know we will need to meet in the future, and this legislation provides the framework to enable that to happen. I commend the bill to the House.

Question agreed to.

Bill read a second time.