Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

I present the government's response the second interim report of the Rural and Regional Affairs and Transport References Committee on its inquiry into increasing use of so-called flag-of-convenience shipping in Australia. I seek leave to have the document incorporated in Hansard.

Leave granted.

The document read as follows—

Australian Government response to the Senate Rural and Regional Affairs and Transport References Committee's Second Interim Report: The inquiry into the increasing use of so-called Flag of Convenience shipping in Australia

May 2017

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

Through its response to the Senate's Rural and Regional Affairs and Transport References inquiry into the increasing use of so-called flag-of-convenience shipping in Australia, the Turnbull government has openly admitted that it does not care one iota about the future of Australian shipping. It has also given the green light to the world's worst practices onboard FOC vessels which involve the atrocious treatment of some of the most vulnerable and exploited workers on the planet. To say that I am bitterly disappointed with the government's response is an understatement.

This inquiry has been looking into the shocking standards, decrepit conditions and rapacious culture of the flag-of-convenience industry. It is one that fills the void in our domestic trade once Australian-crewed, -managed and -registered vessels have been dumped for a cheaper and nastier option. This inquiry has heard of crew abuse, stolen wages, extraordinary security threats and a culture of lawlessness which exists on FOC shipping. Make no mistake: unscrupulous operators register these vessels in places such as Liberia, Mongolia and Panama to avoid paying tax, to avoid providing proper wages and conditions and to avoid responsibility. FOC shipping represents a race to the bottom which Australia should not support. FOC shipping represents a serious threat to Australia's national security, environment and fuel security, as well as to the lives and welfare of international seafarers. FOC shipping should not become the new normal for vessels running around our coast.

This inquiry came about following the shocking revelations in a Four Corners episode aired in June 2015 regarding three deaths at sea on board the MV Sage Sagittarius. Four Corners focused on the deaths of two Filipino nationals—chief cook Cesar Llanto and chief engineer Hector Collado—and Japanese superintendent Kosaku Monji on board the Panama-flagged coal carrier in 2012. A coroner's inquest into the two deaths, which will hand down its findings next Friday in Sydney, heard that guns were being sold on board and that assaults on and intimidation of the crew was widespread. It also heard that the three crew members most likely met with foul play.

This is not a new issue; the Australian parliament investigated the inhumane treatment of international seafarers through the 1992 Ships of shame report. Arrangements surrounding crimes committed at sea were also investigated by the House of Representatives Standing Committee on Social Policy and Legal Affairs following the death of Diane Brimble in 2002 on board the cruise ship Pacific Sky.

Committee chair, George Christensen MP, said in a media release on 27 November 2014 that ' … committee members are seriously concerned about the substance of the response' from the government. Unfortunately, the same can be said today. The Rural and Regional Affairs and Transport Committee endorsed 10 recommendations for the government to consider in its interim report. In its response today the government has rejected six of the recommendations and has noted the remaining four without identifying a clear path forward as to how the government is going to ensure a strong future for the Australian shipping industry and Australian seafarers.

The first recommendation, that the Commonwealth undertake a review of Australia's maritime sector, was met with the following response: 'Another review is unlikely to change the current decline of the Australian shipping industry.' Well, it certainly will not with that attitude. This government should be standing up for Australian jobs, not selling them out. In fact, the government's response to the inquiry's findings further encourages gaping and serious vulnerabilities to our national economy, environment and security. Stating that the government has ratified all relevant conventions neither fixes the problem nor recognises the dangers associated with importing FOC culture into our country.

Recommendation 2 was that this review include a comprehensive whole-of-government assessment of the potential security risk posed by flag-of-convenience vessels and foreign crews. The government's response to this was: 'The Australian government does not support this recommendation.' This is completely unfathomable. In their submission to the inquiry, Australian Border Force made this startling declaration:

The department notes that while a significant proportion of legitimate sea trade is conducted by ships with FOC registration, there are features of FOC registration, regulation and practice that organised crime syndicates or terrorist groups may seek to exploit.

These features are:

• a lack of transparency of the identity of shipowners and consequent impediment to holding the owner to account for a ship’s actions; and

• insufficient flag state regulatory enforcement and adherence to standards.

Surely that means further investigation is required.

Recommendation 5 was that the Commonwealth immediately tighten the provisions for temporary licences in Australian maritime law to FOC vessels being used on permanent coastal freight routes if they fail to pay Australian award wages to their crew. The government's response is completely unbelievable. Under the Fair Work Act of 2009, a vessel operating under a temporary licence under the Coastal Trading (Revitalising Australian Shipping) Act 2012 is required to pay its crew part B wages under the Seagoing Industry Award for its third and subsequent voyages in a 12-month period. I seek leave to continue to continue my remarks.

Leave granted.