Senate debates

Monday, 14 October 2019

Bills

ANL Legislation Repeal Bill 2019; Second Reading

5:34 pm

Photo of Carol BrownCarol Brown (Tasmania, Australian Labor Party, Shadow Assistant Minister for Infrastructure and Regional Tourism) Share this | | Hansard source

I rise to speak on the ANL Legislation Repeal Bill 2019. This legislation represents a tidy up of arrangements that were put in place when the Australian National Line was sold by the Howard government in 1988. At the time of sale, employee entitlements were transferred to the new owners along with all physical assets and the ownership of all business names and associated intellectual property. It has since become apparent that, due to the original ANL Act not being repealed, whilst the Australian government no longer owns the business names of the Australian National Line, the current owner's use of them is compromised. The ANL Act lists the business name Australian National Line as a protected name from unauthorised use. The original intent of protecting the name in the ANL Act 1956 was to ensure that no parties not associated with ANL would be able to use the name or similar names as a trading name. Since the sale, this is no longer necessary. Instead, what has come to light is that the CMA CGM, the owners of ANL, now face limitations on registering and re-registering domain names and other intellectual property due to the 1956 protection of the name ANL still being in place. The opposition agrees that it is unreasonable for this impediment to be in place and therefore supports this legislation. Similarly, we support the repeal of the ANL Guarantee Act, another piece of legislation that has not been required since the sale of ANL in 1998. The old guarantee act was in place to provide for the Commonwealth government to guarantee any loans or other financial undertakings given by the then government-owned ANL.

In supporting this legislation, I would like to thank the Deputy Prime Minister's office and officials from the department for their timely and professional advice on this legislation. However, what the opposition does not support is the current government's lack of support for the Australian maritime industry. Unlike those opposite, Labor is a proud supporter of Australian shipping. We believe that the future of Australian shipping is vital for our economic, environmental and national security. As an island continent, it is natural that shipping provides the key transport linkage for our international trade in commodities. In fact, 99 per cent of the trade to and from Australia is carried by ship. Sadly, less than half of one per cent of this trade is carried by Australian flagged vessels. Disappointingly, thanks to this government, less and less of this trade is carried out by Australian workers on Australian flagged ships. That is because as soon as they were elected the Abbott-Turnbull-Morrison governments set about dismantling the policy framework that was put in place by Labor to support and encourage the maintenance and growth of Australian shipping.

This government's assault on Australian shipping started with the competition policy review that was released in 2015. The Harper review basically recommended open slather when it came to Australia's coastal shipping. In their narrow view of the world, there were limited or no benefits to Australian flagged vessels being given priority in moving around our coastal trade. The government's lack of support is having an adverse impact on our local maritime industry. For the year 2015-16, the total tonnage of goods carried under coastal trading licences was 34.3 million tonnes. Of that total amount, only 10.4 million tonnes was carried by Australian flagged vessels. Twenty million tonnes was carried under temporary licence and a further 3.9 million tonnes was carried by vessels with transitional licences.

A temporary licence provides access to engage in coastal trading in Australian waters for foreign flagged vessels. The licence is usually valid for 12 months, is limited to Pacific voyages and costs $400. Alarmingly, there has been a continued decline in the number of major Australian registered ships. Today there are only 13 registered ships flying the Australian ensign. There is an alarmingly low number. Australian flagged ships crewed by Australian mariners would be the cornerstone of any additional capacity and skills our nation might need in times of significant national crisis. Australian owned large cruise ship companies seem to prefer foreign flagged vessels staffed with crews employed under overseas conditions that have much lower standards for wages and occupational health and safety. The industry is booming, but the Australian economy is not reaping the full benefits.

The horrifying stories of abuse and neglect of crews that often end up in Australian waters should be a cause for concern for everyone in this chamber. It certainly was when Labor was in government, which is why the then Minister for Infrastructure and Transport, Anthony Albanese, established a national system to lift safety standards. The Marine Safety (Domestic Commercial Vessel) National Law Bill and 'stronger shipping for a stronger economy' reforms introduced by Mr Albanese not only protected maritime workers' safety whenever they were in Australian waters but also sought to provide a stronger framework to protect Australia's coastal and marine environment. These reforms were welcomed by industry and workers alike.

What has happened since? Unfortunately, as soon as the current government came to power, under the first of their three prime ministers in the past six years they immediately went to work on dismantling those protections. Another challenge facing our maritime industries, our national economic interests and our national security is the ever-increasing number of temporary licences granted by this government that allow foreign flagged ships to do the work of Australian maritime workers in Australian waters. Previous Senate committee inquiries have highlighted the challenge that flag-of-convenience crews pose when they come to Australia. Australian mariners are subject to stringent background and criminal record checks before being issued with their Maritime Security Identity Card, MSIC, which is essential for any Australian seeking to work in Australian waters or on Australian wharves.

However, foreign crews or foreign flagged vessels are not subject to these conditions. Not only are there real risks to their health and safety—as they've often been forced to spend months if not more than a year at sea without any contact with family or friends, working for subsistence wages—but also we have no way of knowing or policing their background and associations when they dock in Australia. That this has been allowed to flourish on the government's watch is truly alarming. Whilst organisations like the International Transport Workers Federation and locally the MUA do what they can to support vulnerable and exploited workers whenever they are aware of them arriving in Australia, the current situation really is not good enough.

In addition to the genuine safety and security concerns that arise out of the government's approach, I'm sure colleagues will share my concern at the reports that have emerged over the past few years of overseas-sourced labour working for as little as $2 per hour to provide maritime services. Only recently the International Transport Workers Federation asked AMSA to urgently investigate following reports that seafarers on a vessel docked at Port Kembla had not been paid for two months. The bulk carrier was in Port Kembla to carry steel from BlueScope. AMSA was also called in to detain a foreign flagged vessel at the port of Brisbane just the other week—again, because of reports of underpaid workers. In this case it is alleged that the crew were owed over $100,000 by the ship's owners. A Panama flagged vessel docked in Gladstone the previous week was found to be carrying fraudulent documentation and operating two sets of books, the second set in an attempt to disguise wage theft. Last year AMSA detained a vessel in Devonport, again following complaints of unpaid wages. In this case, crew had not been paid for six months. Eventually the vessel was given permission to leave, after more than $300,000 in unpaid wages were recovered.

Recently the ITF inspectors identified $250,000 in unpaid wages during audits of vessels at Australian ports in one week alone. These cases show that massive wage theft and most likely other exploitation of foreign seafarers is taking place in Australian waters. AMSA usually acts swiftly when they're made aware of these abuses, but it's not good enough for the government to sit back and wait for organisations like the ITF to do what should be the government's job. And, as has been pointed out time and time again, these situations have occurred not because there is a shortage of skilled maritime workers in Australia but because the government has allowed and facilitated this race to the bottom. The deregulation-at-any-cost approach that began under the former Deputy Prime Minister Warren Truss, and continues to this day, brings with it consequences that impact on our economic and national security.

Earlier this year the national secretary of the Maritime Union of Australia, Mr Paddy Crumlin, said:

… the Liberals and Nationals have been driving a race to the bottom on the Australian coast, with highly-skilled Australian seafarers replaced by flag of convenience vessels registered in notorious tax havens and crewed by exploited foreign visa workers …

Well, Mr Crumlin was right. The federal government stood idly by in the first half of this year when BHP axed the last two Australian iron ore carriers. This ended a proud Australian maritime trade that had existed for a century and, with the axing of those two vessels, 80 Australian jobs disappeared. No sooner had BHP made their announcement than the federal government signed off on temporary licences that replaced the vessels with foreign flagged carriers and allowed 80 hardworking Australians to be replaced by those with overseas visas. So much for protecting and supporting Australian jobs and Australian workers!

This government is certainly no friend of workers, especially seafarers and maritime workers. Indeed, they actively work against Australians seeking good jobs to support their families. Australia must have as a priority the maintenance of a skilled and valued maritime workforce. That is why this is a priority for Labor at a national and at a local level.

In my home state of Tasmania, the Hodgman Liberal government has repeatedly neglected our state's needs. Most of the goods that Tasmanians need for their day-to-day lives come to Tasmania by ship. The goods we seek to export to mainland Australia and the rest of the world leave our state by ship. In recognition of the vital role our ports play in Tasmania's economic future, TasPorts has repeatedly called for an $80 million investment in the port at Burnie. This money is essential to increase the port's capacity, improve ship-loading capacity and construct an international container terminal.

Tasmania depends on infrastructure like that much needed in Burnie to maximise our agricultural and mining exports and to enhance our appeal as a tourist destination. This critical investment would directly lead to jobs on the north-west coast in the electorate of Braddon. People on the coast are finding it tough to get a job. Starving our vital infrastructure of the investment it needs to help our export industries and create jobs just doesn't cut it. Without this investment, our agriculture and mining sectors miss out on export opportunities and locals miss out on jobs. Yet the government has failed to provide, in a timely manner, the investment that farmers and mining companies are pleading for.

It is not just the needs of our ports that the Hodgman Liberal government is ignoring. It is also ignoring the safety of those working in and seeking to use our ports. There is currently a dangerous lack of maritime pilots working at the Port of Hobart. Until recently, there was only one marine pilot available in all southern Tasmania. This one person has had to cover the Port of Hobart 24 hours a day, 7 days a week, for the past month. Unless the government acts, and acts quickly, operations at the port will become risky as we head into the busy cruise ship season. The amount of stress being experienced by marine pilots operating in Tasmania is of significant concern. Poor rostering has caused shipping delays. Shipping at Bell Bay was delayed for 12 hours late last year because of a shortage of available staff. The pilot shortage at the Port of Hobart has also led to delays in shipping. Pilots employed by TasPorts have been known to accumulate up to 12 months of leave for the reason that there aren't enough pilots employed by TasPorts to allow them to take a well-deserved break.

Just as Tasmania is dependent on a vibrant Australian maritime sector, so too are many of our important regional communities. For example, how would our regional and remote communities in the Torres Strait get the supplies they need if it weren't for Australian ships and Australian seafarers? Where is the Australian government's commitment to those communities' ongoing welfare? Not only do Australian seafarers help sustain these communities; they help improve our knowledge of environmental and other incursions on our coastline. You have to ask: what does the Liberal Party have against Australian ports and our maritime industries?

Despite the government's lack of interest, Labor remains committed to working with all stakeholders to revitalise the Australian shipping industry. In the lead-up to the last election, Labor's then shadow minister for transport and infrastructure, Anthony Albanese, committed Labor to ending the abuse of temporary licences that has occurred under this government—abuse, I might add, that is contrary to the current legislation. Mr Albanese has repeatedly and correctly pointed out that the national interest is no longer adequately prioritised by this government when it is considering maritime policy.

Unlike those opposite, Labor believes in a strong and vibrant maritime industry and will always support Australian seafarers, maritime workers and Australian flagged ships. This is why Labor is proposing its amendment to the second reading motion.

As I mentioned earlier, Labor supports this legislation. Labor would also welcome the support of the chamber in standing up for Australian shipping and Australian maritime jobs. We can't have a strong, secure economy if our nation is completely reliant on foreign vessels to provide our fuel, bring in the goods we need, carry our exports and move products around our coastline. I formally move the second reading amendment standing in my name and I commend it to the chamber. I move:

At the end of the motion, add: "but the Senate:

(a) notes this Government's record of undermining the Australian shipping industry; and

(b) reaffirms that Australia's economic, environmental and national security interests are best served by a viable and competitive Australian shipping industry."

5:51 pm

Photo of Rachel SiewertRachel Siewert (WA, Australian Greens) Share this | | Hansard source

I rise to speak on the ANL Legislation Repeal Bill 2019. This bill repeals legislation related to the former Commonwealth shipping line ANL Ltd. In the words of the explanatory memorandum, it does so to remove restrictions against the use of protected names relating to the former Commonwealth owned shipping line ANL Ltd and to remove outdated and unnecessary legislation.

It is worth revisiting the origins of ANL, because it captures some of the significant changes in our society as the major parties have slowly stripped governments of many of the assets they used to own. In 1946 the Australian government established the Australian Shipping Board. In 1956 the Australian Coastal Shipping Commission took over the operation of a number of ships operated by the Australian Shipping Board. They operated under the name of the Australian National Line, and the Australian Coastal Shipping Commission became simply the Australian Shipping Commission in 1974. In 1989 the Australian Shipping Commission was transformed into ANL Ltd, operating as a public company wholly owned by the government. The Keating government tried to privatise it in the early 1990s, but it was the Howard government that eventually privatised it, in 1998.

The explanatory memorandum to this bill notes that the 1998 sale included the assets, the intellectual property, and transfer of staff. Analysis by the Parliamentary Library in 1997 noted that the coalition's approach was harsher than the one previously planned. It said:

The major change is that under this Bill the Government will not retain a special or 'golden share' as provided for under the Keating Government's law. This, in effect, means that many terms and conditions of employment of ANL's workforce are not being entrenched by legislative means. The Government, for example, would have no legislative basis for insisting that ANL's articles of association contain a special provision that the company employ only Australian workers.

The ships have long since been sold, and this bill is only tidying up the legislation to make it a little easier for the current owners. But tragically, though the crucial legislation has already passed, the impact of the privatisation agenda is still impacting many of us across the country in many areas of our daily lives. Fundamentally, there is a strong case for government ownership of key assets. I'd like to quote from the book Governomics: Can we afford small government? by Ian McAuley and Miriam Lyons. It says: 'All economists apart from those under an extreme libertarian fringe accept that natural monopolies require some form of public policy intervention. Disagreement is about details, including definitions (for example, are cellular phone networks natural monopolies, do buses compete with commuter trains?) and on the means of intervention.'

A report by the Grattan Institute identified many sectors across the entire Australian economy that are natural monopolies. They include electricity transmission and distribution, rail freight transport, airport operations, toll road operations and port operations. These sectors and many others have an important impact on people's daily lives. When you use electricity, catch a train or flight, park at an airport or pay a road toll, you may be paying too much—exploited by private companies because governments have failed to act. The ACCC has called out airport operators for how much they've charged for airport parking and the fees they're charging airlines.

That's why I'm proud of the policies the Australian Greens took to the last election. We believe that electricity, banking and the internet should be run as essential services, putting public good before corporate profit. We want to create publicly owned energy and banking providers to stop people getting ripped off by big corporations. In our platform, our plan includes establishing a new publicly owned competitor to private power companies. It would be dedicated to driving down costs instead of driving up profits. We want to establish a people's bank to provide basic banking at cost price.

Governments failed us when they gave in to the corporate privatisation agenda and sold off so many key assets in the nineties. Now we need to focus on the key areas that need to remain protected in public hands. We recognise that, in relation to ANL, the sale has already occurred and we understand this bill is just housekeeping. But we stand committed to a vibrant public sector that provides key services Australians deserve, whether it be electricity, banking or other parts of the economy.

5:56 pm

Photo of Slade BrockmanSlade Brockman (WA, Liberal Party) Share this | | Hansard source

I rise tonight to make a very brief contribution on the ANL Legislation Repeal Bill 2019. As previous speakers have said, this is merely a clean-up bill. The ANL was sold a long time ago under the Howard government, as those opposite correctly noted. However, I think it is appropriate to put a little bit of context, a little bit of history, into this debate, particularly given some of the other things that were said.

The decision to sell the Australian National Line was actually taken under the Labor government. In fact, in 1991 the then Labor government declared that they wished to sell it. I would bring to the attention of anyone who's listening an article by Mr Keith Trace, who was an associate professor of economics at Monash University at the time. It's a very interesting article because it sheds light on the trouble that the Labor government had in carrying through on its policy in the face of an intransigent and highly militant union in the MUA. It is a tale of both the destructiveness of the union movement and the inefficiency—the terrible inefficiency—of government owned enterprises in certain sectors.

I'll just highlight one thing from this article, and I note again that this took place over the period of the Labor government. The ANL had an operating profit of around $40 million in the early eighties when Labor came to power. It ranged between $20 million and $40 million from the period 1984 to 1986. Then it basically fell off a cliff. By 1994, due again to the gross inefficiencies within the system, the ANL—and, remember, this is in 1994 dollars—had sunk to a $120 million operating loss. That is quite an extraordinary trajectory, particularly for a government owned enterprise. What did ANL actually own at this point in time? It only operated 12 vessels, four of which it owned outright. So, owning four vessels outright and operating 12 vessels, it managed to achieve a net operating loss of A$120 million in 1994 dollars. As I've said, this article is a litany of aggressive union tactics basically designed to drive this business out of government ownership. I find it very, very surprising that those opposite don't remember this history, because, Senator Sterle, I think some of you were around at the time. I note, this is just a clean-up bill. I do commend all those who will support the bill.

6:00 pm

Photo of Glenn SterleGlenn Sterle (WA, Australian Labor Party, Shadow Assistant Minister for Road Safety) Share this | | Hansard source

I won't take long, but I think it's important. I've been working around this area for a long, long time. This is just a clean-up bill. My view is very clear: I think it's criminal that the ANL was sold to start with. I think it's absolutely criminal that this government has done everything it can to diminish the Australian shipping fleet. This government has gone out of its way to make sure that we have not only got rid of Australian flagged vessels but killed off good paying Australian jobs.

Let's get this very clear. We are an island nation, for crying out loud. I was joking a number of years ago with a good friend of mine ex-MUA secretary Mick Doleman. Mick said to me, 'There were more ships in the First Fleet when we came to Australia than what we've got now.' I said 'Mick, that's not even funny anymore.' But this is what it is: we've got 13 flagged vessels.

It is imperative that anyone listening to this should actually focus on what this government has done to drive down the opportunity for Australian seafarers. Masters, skippers and engineers don't go to a pastel-coloured classroom at TAFE to learn how to be a master, a skipper or an engineer. These skills are learned for many, many, many, many years. I'm not joking. It's getting into near on 20 years where these workers develop these skills. They don't get it out of a Wheaties box. Could you imagine the bile that would be coming from that side if we said: 'We don't need Aussie farmers anymore. We'll just get rid of Aussie farmers and we will bring in whatever from other countries. Not only that but we'll exploit the temporary visa system and we'll exploit them when they get here.' Could you imagine what they'd say? Senator Brockman—you and I get on extraordinarily well—you'd know there'd be uproar. So why is there not uproar when our shipping industry has been decimated by the Howard government followed by the Abbott-Turnbull—and where are we now?—Morrison government?

Mr Acting Deputy President Gallacher, you and I sit in here and listen to Senator Reynolds give off her spiels in question time about Defence and about what a great spend we're doing in shipping and Defence. Here's a little bit of info for that mob over there: did you know that before all these Australian defence vessels that are going to be built here can't be handed over to the Navy until the merchant navy has done all the sea trials? Think about that. You're going out of your way to make sure there won't be any more captains, engineers, masters and the lot. Who the hell's going to do it then? What are you going to do? Are you going to exploit another temporary visa system or another worker visa system and bring in foreign engineers and captains? That's what you're doing now.

We also pride ourselves that, when we have catastrophes off our coast on the Australian Great Barrier Reef, they're not Australian ships that are running into the reef. From an environmental argument too, we want Australian captains, Australian engineers, Australian masters and Australian seafarers.

What happened to the old thing you stuck on your fridge that said, 'Don't be alarmed; be alert?' What about national security? Wouldn't it be nice if we knew where all of these seafarers were coming from before they came here? This may come as a shock, but I am totally fired up and have been for many, many years watching the Australian seafarers and seafaring industry being decimated by that side of government. I think the hypocrisy from the government is extraordinary. They need to be held to account, because, as I said, I couldn't imagine it if we imported all our farmers. Maybe what we should do is exploit foreign visa systems and bring in foreign politicians. They'll probably work for one-tenth of the wage too; they're probably not a bad idea. I bet you'd jump up and down about that. It's a nothing bill, but I'm still pretty peed off about the demise of the Australian shipping industry. That's it.

6:04 pm

Photo of Helen PolleyHelen Polley (Tasmania, Australian Labor Party) Share this | | Hansard source

I rise to talk about the ANL Legislation Repeal Bill 2019. This bill is to repeal the ANL Act 1956 and the ANL Guarantee Act 1994. It is designed to remove the current restrictions that are extremely out of date and unnecessary. ANL was an Australian government owned shipping line that was sold to a French shipping company in 1998. This sale included all access to business names, the IP and websites. It also included for the remaining staff to have all their leave and entitlements be met by the new owner. Over the years since the sale there have been issues around new owners having full provisions to use the ANL trademarks, IP and web addresses without the risk of being sued. This bill will give the legal clarity and certainty to the French container company that they are entitled to.

Labor, as a party, are proud to support the Australian shipping industry. We know that shipping is an important national strategic industry. For my home state of Tasmania shipping is crucial for our island. If we are to value and add to the products and produce that we are currently exporting then shipping will only become increasingly more important. As an island we depend on shipping as it is our lifeline. We rely on the shipping industry for transportation of freight and passengers. In fact, in Australia 99 per cent of our trade to and from other countries is carried out by ship. We know that Australia has the fourth largest shipping freight task in the world.

In Australia international shipping is becoming busier with the expansion of our commodity trade. We have also seen a boom in the cruise ship industry and know that we're seeing more international tourists visiting Australia. In Tasmania alone for the period of 2019 to 2020 there are 130 scheduled cruise ships planned to visit. This boom in tourism, with the help of cruise ships, is great for our economy both here in Australia generally and, in particular, for my home state of Tasmania.

Through the history of Labor, we have shown we are proud to support the vital role that the Australian maritime industry plays in securing our economic, environmental and national security interests. In fact, if Labor had been elected at the last election we would have worked to create a strategic fleet of Australian flagged vessels that could be called upon in areas of strategic importance to the Australian economy and, in particular, the distribution of liquid fuel. If Labor had been elected in May, we would have stopped the abuse we see on temporary licences that has occurred under this Liberal government, which is in breach of existing legislation. We would have ensured that the national interest was of high importance when it comes to licensing of foreign ships to work in Australia.

Labor, unlike the current government, is a big supporter of the Australian maritime workers and the Australian flagged vessels. We know that a vibrant maritime industry can help serve our nation's economic, environmental and national security interests and, as such, we want to see the industry that serves the nation's shipping needs able to create profit for the industry and secure a strategic set of maritime skills that can provide jobs and opportunities for our people.

In fact, the Australian Maritime College, based in Launceston in Tasmania, has a significant role to play in education and training, and skilling of maritime workers both within the Australian shipping areas and also internationally. So we do have very much a vested interest in ensuring that we have a vibrant, profitable but well-trained and skilled maritime industry.

In the last six years, we've seen contrast to Labor's plans and, in fact, we've seen this current government neglect this vital industry. We've seen this government undermine policy settings that were put in place by the previous Labor government, and they have failed to even offer an alternative view for the maritime sector in this country. Even though we know we have a high percentage of trade to and from countries, we've seen this current government cut our Australian fleet. We now have only 14 vessels that operate both domestically and internationally. Australia's seaborne trade is carried by less than half of one per cent by Australian flagged ships. This is money going out of Australia and means fewer jobs for Australian workers.

In my home state of Tasmania, shipping is vital in creating jobs and economic growth. Tasmania, as I've said, is an island that is isolated by water, and as such Tasmanian consumers and exporters demand and depend on shipping in order to export our high-quality products and produce. If nothing is done to protect shipping, then Australia is potentially at risk, which would have a massive effect and a very negative effect on our economy.

With the ridiculously high use of temporary licences that have been allowed under this Liberal government, on their watch we have seen foreign flagged ships come in and do the work, bringing along with them foreign workers. As such, work has been taken away from Australian maritime workers. The Abbott-Turnbull-Morrison governments have had an extremely long history of undermining the viability of Australian maritime industries, despite their importance to our national security. They talk about wanting to keep all Australians safe, yet we have international vessels from a various number of countries coming into our waters, and we have no idea—I repeat: no idea—about their workers and if they could potentially create a risk to our security.

In fact, in 2015 the then minister for transport and infrastructure tried to introduce legislation that would rip up reforms made by the previous Labor government's legislation that aimed to protect Australian shipping. While the Labor Party agrees to support the ANL Legislation Repeal Bill, we will be watching the government very closely and very carefully, as their track record regarding protecting Australian shipping has not had the high priority that we would place on it, and we will be holding them accountable. We will continue to keep this government accountable, and we will make sure that the maritime industry is protected and that Australian workers and Australian businesses are looked after and not pushed aside and forgotten by this Liberal government.

6:12 pm

Photo of Perin DaveyPerin Davey (NSW, National Party) Share this | | Hansard source

I rise to speak on the ANL Legislation Repeal Bill. As has been noted, this bill repeals the ANL Act 1956 and the ANL Guarantee Act 1994, which both set out arrangements relating to the former Commonwealth shipping line ANL, or the Australian National Line, which was owned and operated by the Commonwealth during the last century.

The ANL shipping line was founded in 1956 and operated until 1998 as a Commonwealth owned entity. In 1998, the Commonwealth sold the line, including all associated business names, trademarks and intellectual property, to the container shipping company CMA CGM. Since the sale of ANL to CMA CGM in 1998, the ANL Act has been left dormant and has largely had no legal or practical effect. And while most of the act is defunct, it still restricts the use of certain protected names relating to the ANL shipping line, including the names 'ANL', 'Australian National Line' and 'SeaRoad'. This is restricting some businesses from registering domain names, website names and trademarks, despite these businesses actually having used these names in good faith for many years since the sale of the original company.

The ANL Act contains no discretionary provisions or powers that would allow other entities to use the protected names. The government has taken a pragmatic approach towards enforcing the protected name provisions. No prosecutions have been undertaken and none are planned. However, we need a permanent solution. A permanent solution is required to ensure that we as a government do not hinder businesses from legitimately registering or reregistering trademarks, website names or other intellectual property, especially those businesses that have been doing so in good faith for many years.

Repeal of this act is the most appropriate and efficient means to remedy this situation. If the ANL Act is not repealed before 1 November 2019—this year—when the website registration of the first affected company is set to expire, the Commonwealth could be exposed to significant legal, financial and reputational risks for not honouring that 1998 sale of ANL in good faith. As with the ANL Act and the ANL Guarantee Act, as they no longer have any legal or practical effect, they should and can be repealed. The guarantee act sits with the Treasury portfolio and grants the Treasurer the power to guarantee loans made in relation to the former government shipping line, ANL Ltd, but, as the ANL shipping line no longer belongs to the Commonwealth, this power is no longer required.

This bill is important because maritime trade is and always has been vital to Australia's economy, and we need to make sure that our companies and corporations can operate using their own intellectual property and trademarks. In fact Australia relies on sea transport for 99 per cent of its imports and exports. A substantial portion of our domestic freight also depends on coastal shipping. Shipping and maritime trade supports both directly and indirectly the livelihoods of Australians right across the nation, including in my home state of New South Wales, where ports serve as a key economic driver in our region: the port of Newcastle is the largest port on the east coast, is one of the world's largest coal export ports and has been a global trade gateway for more than 220 years; Port Kembla, on the Illawarra coast, is home to the state's largest motor vehicle import hub and grain export terminal and is the second largest coal export port in New South Wales, behind Newcastle; and Port Botany, the largest container facility in New South Wales and the state's primary bulk liquid and gas port, serves as a global trade gateway to Sydney, the largest population centre in Australia.

It is a duty of Australia's regulatory framework for our maritime industries to remain current and fit for purpose and it is a duty that we take very seriously. I agree with Senator Brown, who says that we need to maintain a viable, sustainable industry, but it is also very important that that industry is internationally and globally competitive, and that is what the government is committed to doing. Our regulatory framework should continue to facilitate trade, which is critical to the continued prosperity of so many Australians and Australian industries, and this requires the government to remove unnecessary regulation and regulatory burdens to support the efficient operation of maritime businesses. In essence we need to reduce red tape. This bill will ensure affected maritime businesses can get on with their operations and make important contributions to our national economy without interference from unintended historical regulatory barriers. I commend this bill to the Senate.

6:18 pm

Photo of Raff CicconeRaff Ciccone (Victoria, Australian Labor Party) Share this | | Hansard source

I'm going to speak just briefly on the ANL Legislation Repeal Bill 2019 tonight. It does sound like the Senate will vote in favour of this bill, correcting a longstanding oversight associated with the 1998 sale of ANL by the Commonwealth. As we heard earlier, the sale of ANL, 21 years ago, included the rights to business names, intellectual property, domain names et cetera; however, the continuing existence of the ANL Act and the ANL Guarantee Act poses a statutory bar to the current owners' comprehensive use of those rights. This repeal will remove any restrictions on the use of protected names by the current owners of ANL. The coalition is at least willing to take action to help one shipping line; if only it could say the same for Australia's maritime industry!

As Senator Sterle and others on this side have said, Labor is a strong supporter of Australian shipping. When we came into government in 2007 we took steps to reform the shipping industry, consulted widely with industry and unions and eventually passed the Coastal Trading (Revitalising Australian Shipping) Act 2012. This coastal trading act sought to level the playing field for the Australian shipping industry. It offered, as my colleagues Senators Sterle and McCarthy wrote in 2017 in a Rural and Regional Affairs and Transport Committee report:

… a stable fiscal and regulatory regime, one that would encourage greater investment and promote international competitiveness.

The 2012 reforms that were led by the former Minister for Infrastructure and Transport, now the federal Leader of the Opposition, Anthony Albanese, included measures, like favourable taxation incentives, to encourage the flagging of ships in Australia. It encouraged the employment of Australian seafarers and funded a maritime skills development package.

We took these steps because Labor recognised the importance to our future of a flourishing and vibrant shipping industry. A strong shipping industry is critical to our strategic position, in terms both of economics and of national security. We need a thriving domestic shipping industry. Almost all trade to Australia—99 per cent, in fact—is carried by ship. We have the fourth-largest shipping freight task in the world. As our commodity trade expands, international shipping is becoming busier. Our cruise industry is also growing rapidly. Not only does this explain how critical the industry is; it also shows the extent of the opportunity that shipping presents to our economy.

Sadly, that's an opportunity that, over the last six years, the current coalition government has been determined to squander, to our detriment. In the four years between 2013 and 2017, 12 Australian vessels reflagged to foreign states. Today, there are just 14 Australian flagged vessels operating domestically and internationally, and less than one-half of one per cent of our seaborne trade is carried by Australian flagged ships. The coalition has overseen six years of neglect of our maritime industry. Not only did the coalition vote against the reforms back in 2012; it has twice attempted to pass legislation that would have undermined Australian shipping industry legislation and would have seen the demise of employment opportunities for Australian seafarers.

It's clear to me and other senators on this side of the chamber that the coalition simply does not take seriously the potential for and the regular occurrence of the exploitation of foreign seafarers in Australian waters. The coalition government has tried to push its reforms, which have inflicted enormous damage on the Australian shipping industry, through the parliament twice in the last six years. What Australian seafarers and the shipping industry stakeholders need to know is that, unlike senators on the other side, my ALP colleagues and I support the Australian maritime workers and Australian flagged vessels. That is why Labor is committed to stopping the abuse of temporary shipping licences that this government has allowed to go unchecked and in breach of the existing legislation.

When it comes to licensing foreign ships, we are committed to prioritising the national interests. We're committed to working towards a fleet of Australian flagged vessels that will be not just necessary for the future of a successful Australian shipping industry but essential so it can be called upon in times of strategic importance. Labor is committed to a vibrant shipping industry—a maritime industry that serves the national interest and is profitable and strong. We are committed to ensuring seafarers in our territorial waters are free from exploitation and wage theft. We are committed to a shipping industry that provides good jobs with proper pay and conditions. Labor will never support measures that undercut and undermine the Australian maritime industry, and we'll continue to draw the attention of this place and the attention of the Australian community to this government's continuing neglect of Australian maritime workers and Australian flagged ships.

6:23 pm

Photo of Zed SeseljaZed Seselja (ACT, Liberal Party, Assistant Minister for Finance, Charities and Electoral Matters) Share this | | Hansard source

The ANL Legislation Repeal Bill 2019 repeals the ANL Act 1956 and the ANL Guarantee Act 1994, removing outdated legislation and unnecessary restrictions on businesses. These two acts set out arrangements relating to the former government's shipping line ANL, the Australian National Line, which was owned and operated by the Commonwealth during the last century.

In 1998 the Commonwealth sold the ANL shipping line. Following transition of the ANL shipping line to a private business, most provisions of the ANL Act ceased to have any legal or practical effect. A key exception is provisions protecting the use of names such as ANL and SeaRoad once the Commonwealth sold the ANL shipping line. These protections should have been removed but were retained through a historical oversight. Recently, these protections have impeded a small number of maritime businesses that have sought to undertake activities such as reregistering of website names and registering trademarks, despite these businesses having used the names in good faith for many years. This bill repeals the ANL Act, correcting that oversight by removing an unintended and unnecessary barrier impeding business operations and honouring the sale of ANL in good faith. This will allow these businesses to get on with their operations and continue making important contributions to our national economy. Like the remaining parts of the ANL Act, the ANL Guarantee Act became obsolete following the 1998 sale of ANL. The power for the Treasurer to guarantee loans made in respect of the former government business ANL has long ceased having practical effect. Both acts should therefore have been removed as unnecessary and outdated pieces of legislation.

I acknowledge and thank the Treasurer for his agreement to repeal the ANL Guarantee Act simultaneously to support the efficient use of the parliament's time. Removing outdated and spent legislation is part of the government's duty to ensure Australia's regulatory framework for our maritime industry remains fit for purpose and supports the efficient operation of our maritime businesses. I thank senators for their constructive contributions to the debate. I commend the bill to the Senate.

Question agreed to.

Original question, as amended, agreed to.

Bill read a second time.