David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

I present two reports of the Joint Standing Committee on Foreign Affairs, Defence and Trade: Criminality, corruption and impunity: should Australia join the global Magnitsky movement? and Inquiry into the implication of the COVID-19 pandemic for Australia's foreign affairs, defence and trade. I move:

That the Senate take note of the reports.

I first wish to make some comments on the inquiry into the implications of the COVID-19 pandemic for Australia's foreign affairs, defence and trade policies. It's my duty as the Chair of the Joint Standing Committee on Foreign Affairs, Defence and Trade to present the committee's report. COVID-19, as everyone knows, has been one of the most significant threats to global human health since the pandemic of 1918. In addition to the number of cases and deaths directly attributable to the environment, the pandemic will have a wide range of implications for global health and health systems.

But the committee inquiry concluded that the strategic lessons from COVID-19 are not predominantly about health. One of the key findings of the committee was that the behaviour of nation states in response to COVID-19 has called into question some assumptions about the extent of adherence to the global rules based order by nations when they are facing a crisis or they're under stress. These assumptions have underpinned many aspects of Australia's foreign affairs, defence and trade policy in recent decades.

Australia also has found that COVID-19 has exposed structural vulnerabilities in some of our critical national systems. Those are the systems that enable us to function as a secure, prosperous First World nation. Many of these vulnerabilities are caused by supply chains that rely on just-in-time supply from the global market. In some cases this is exacerbated by supply coming in part or in whole from companies that are subject to extra judicial or coercive direction from some foreign governments. Any decrease in the support for the norms of the rules based order negatively affects the collaboration and conflict resolution between nation states as well as the efficacy of commercial relationships between companies throughout the supply chains. So a key lesson from COVID-19, given the behaviour of nation states, given the importance of supply chains, is that returning to business as usual is not an option if Australia is to be resilient, remaining secure and prosperous in the face of future crises.

The strategic update of 2020 makes it clear that another zoonotic pandemic like COVID-19 is only one of the potential crises facing Australia and our region that would disrupt business as usual. Unexpected or sustained disruption due to grey zone, coercive or military actions are likely to substantially degrade, if not disable, one or more of Australia's critical national systems. Critical national systems are things like our health system, our transport system, our defence system, communications, finance—all the things that help us operate as a First World nation.

Australia must identify the supply chains that underpin these critical national systems and work with industry to reduce, if not eliminate, the vulnerabilities in those supply chains so that we increase our resilience. This will require changes to the Commonwealth's procurement rules to specifically recognise the value for money that is inherent by partnering with those industries that create or expand sovereign capabilities to provide the priority enablers for those critical national systems. It will also require more whole-of-government strategic assessments, investments and diplomatic efforts to increase our resilience through trusted and transparent partnerships with like-minded nations.

Australia, like much of the Indo-Pacific region, has benefited from the global rules based order, which has underpinned the increase in security and prosperity in recent decades. Poor outcomes, though, from some of the key multilateral institutions have caused the decrease in engagement by some nations, and there is evidence of some authoritarian nation states seeking to influence the global rules and standards away from the transparent, plural and democratic values that have informed global norms in recent decades. Therefore, it is clearly in Australia's interest to work with like-minded nations to ensure that reforms to key multilateral institutions are effective but also consistent with the democratic values and the rule of law.

COVID-19 has seen Australia respond effectively, including with novel approaches to governance with things such as the national cabinet and partnerships with industry that placed strategic, timely outcomes over rigid adherence to established process. Therefore, responding to the lessons of COVID-19 that have been identified in this report will require a similar commitment to whole-of-government, outcomes focused leadership and timely, funded implementation of novel solutions which will challenge the status quo.

Before concluding my remarks, I would like to note that there are some human rights implications, which I believe Senator Sheldon will speak to, that affected our mariners, who are part our of transport system—whether they be on foreign ships—and security implications in the small number of Australian flagged ships. I will leave Senator Sheldon to talk through some of those implications.

Finally, I would like to thank people who submitted to the committee. I'd like to thank the committee secretariat for their work throughout a year that's been disrupted by the pandemic in making sure that the inquiry could still continue, that evidence could be gained. I would particularly like to thank Stephen Sherlock for his work in drafting the report, and for working with me and the committee on the recommendations. I commend this report to the Senate.

Given the time remaining, I seek leave to incorporate the statement on the other report from the inquiry of the Joint Standing Committee on Foreign Affairs, Defence and Trade, conducted by the Human Rights Subcommittee: Criminality, corruption and impunity: should Australia join the Global Magnitsky movement?.

Leave granted.

The statement read as follows—

Joint Standing Committee on Foreign Affairs, Defence and Trade

Targeted Sanctions inquiry

Report of the Joint Standing Committee on Foreign Affairs, Defence and Trade ' s inquiry into the use of targeted sanctions to address human rights abuse

HON SENATOR DAVID FAWCETT

CHAIR, JOINT STANDING COMMITTEE ON FOREIGN AFFAIRS, DEFENCE AND TRADE

CANBERRA 8 December 2020

Mr President, it is my pleasure as the Chair of the Joint Standing Committee on Foreign Affairs, Defence and Trade to present the Committee's report, led by the Human Rights Sub-Committee for the inquiry into the use of targeted sanctions to address human rights abuse.

Australians are proud global citizens. We are committed to our democracy, and the importance of upholding human rights, both within Australia and abroad. Through my long involvement with the Joint Standing Committee on Foreign Affairs, Defence and Trade, I have watched an increase in community awareness and engagement with Human Rights matters. This is reflected in our government's contribution to international efforts to uphold human rights, through international treaties, our own diplomatic missions, our support for aid and development programs and collaboration with our allies.

There has also been a growing awareness that country- or sector-wide sanctions often impact innocent parties disproportionately, and a new way to instigate consequences for unacceptable behaviour is required. It has long been the case that kleptocrats and other perpetrators of serious human rights abuse and corruption have transferred assets to enjoy in Western countries with safe, stable democracies and secure financial systems, such as Australia.

While it would be preferable for the perpetrators of human rights abuse and corruption to face penalties in their home countries, and reparations made to victims, this is often not what happens.

A number of jurisdictions have recognised this problem. Inspired by the compelling experience of Mr Sergei Magnitsky, and advocacy for justice on the global stage by Mr Bill Browder, the efforts of international human rights experts and frontline organisations have focused on advocating for targeted sanctions regimes with the effect of introducing tangible consequences for perpetrators and beneficiaries of serious human rights abuse and corruption.

The Human Rights Sub-committee has heard evidence of Australians, and their families, being threatened, and instances of human rights abusers investing the proceeds of their crimes in Australia, gaining access to Australian education and healthcare systems. This is simply unacceptable.

We have heard that in other countries, targeted sanctions legislation has allowed governments to tackle this issue. Travel bans and seizing assets has prevented perpetrators from enjoying, with impunity, the proceeds of their crimes, and most likely deterred other would-be perpetrators from attempting to do the same.

Implementation of this report's recommendations will give Australia the option to impose travel bans and freeze assets. Working in concert with other countries, we will close the gap of opportunity for perpetrators, and ensure there are consequences in cases where they were otherwise lacking.

The Committee has recommended the enactment of a standalone, Magnitsky-style targeted sanctions Act, during the 46th Parliament. Members agreed that taking swift and decisive action will allow Australia to not only play our part in the Global Magnitsky movement, but to take the lead in developing a best practice targeted sanctions regime.

This inquiry was conducted throughout the COVID-19 pandemic. The challenges presented by stay-at-home orders and ongoing health concerns did not deter witnesses or the Sub-committee. The level of commitment to this inquiry, despite those challenges, clearly demonstrated the significance of the issues under consideration, and determination of all involved to see matters addressed.

This inquiry received evidence from a diverse range of sources, including thoughtful and informed contributions from concerned Australian citizens, Australian diaspora groups, human rights advocacy groups, international parliamentary colleagues, and internationally renowned human rights legal practitioners. This diversity of perspectives greatly strengthened the Committee's appreciation of the subject matter.

I thank the Chair, Hon Kevin Andrews MP and members of the Human Rights Sub-committee for their full and collaborative engagement, their thoughtful consideration of the issues and contributions throughout the inquiry. I also thank the staff of the Committee Secretariat for their diligent work to support the inquiry and report. I particularly want to thank Inquiry Secretary, Sonya Fladun.

It is my hope that the implementation of this report's recommendations will send a strong and clear signal to perpetrators of human rights abuse and corruption about the values of Australians.

Implementation of the report's recommendations will play a significant role in reducing the incentives for engaging in human rights abuse and corruption. I also hope that this report is received as a message of solidarity by Australia's allies, and of support to victims of human rights abuse and corruption everywhere.

Mr President, I commend the report to the Senate.

Tony Sheldon (NSW, Australian Labor Party) Share this | Link to this | Hansard source

I rise to take note of the report of the inquiry into the implications of the COVID-19 pandemic for Australia's foreign affairs, defence and trade. As a member of the Joint Standing Committee on Foreign Affairs, Defence and Trade, I was pleased to see the broader strategic implications of COVID for our defence, security, trade and diplomacy taken up by this inquiry. I want to draw to senators' attention one key aspect of the report. I speak to the humanitarian and economic crisis in our shipping industry, brought on by the failure of the federal government and some state governments to coordinate ship crew changes in the context of the COVID-19 pandemic.

Many in this chamber will be aware of the plight of over 400,000 seafarers around the world who, due to border and quarantine restrictions, have been trapped aboard their ships. Many of these crews have been at sea for over a year. By this Christmas, some will not have been able to travel home to their families in 18 or 20 months. The physical and mental health strain on these seafarers is immense. There have been suicides and serious mental health episodes. These ships have been described by Human Rights Watch and other human rights organisations as 'floating prisons'.

Let's bear in mind that Australia, like many countries, is a signatory to an International Labour Organization convention that limits time on board without leave to a maximum of 11 months, and that most crews would ideally get leave after nine months. These are human beings bearing the brunt of the pandemic so that vital goods can continue to be traded around the world. The Australian Maritime Safety Authority is required to act on behalf of seafarers when their time aboard breaches the 11-month limit. They recently raised this limit to 14 months so that ships can be accepted at Australian ports. In the words of Carl Schou, who is the Singapore based CEO of Wilhelmsen Ship Management, Australia has taken the most stringent stance on crews overdue for change, and this is setting a good international example, but this alone does not solve the underlying problem.

The shipping and ports industry have joined with unions like the International Transport Workers Federation to alert governments, including our own, to the humanitarian and economic consequences of not making arrangements between countries and states to facilitate crew changes. The CEO of Ports Australia, the Hon. Mike Gallacher, warned the joint standing committee in July that not enough was being done to address the inevitable flow-on effects of this crisis. He said:

… if you have a vessel pull alongside and the crew walk off that vessel, then it's going to be very difficult to move that vessel away from the wharf, which therefore causes difficulties with regard to the export or import supply chain … It wouldn't take very long … if we had a number of these vessels falling into this situation, whereby ports could simply come to a grinding halt.

This industry must deal with the different quarantine and crew change arrangements for every country. For crews travelling in Australian waters, the challenges of quarantine and border restrictions have been compounded by each state border closure having its own additional set of rules. While there has been an effort by the Australian federal and state governments to coordinate interstate trucking throughout this year, our federal government has not been so effective, along with the states, in having a national strategy to coordinate to get shipping crews safely across borders so they can be relieved. Relief crews have often been forced to quarantine twice, adding additional weeks to their already long service times. Seafarers have waited weeks or months to be repatriated to their home countries. Meanwhile, the shipping of key commodities to our export markets has been put at risk, significantly delayed and in some cases halted altogether.

It is with growing alarm that I report that current trade disputes with China have escalated to the extent that this crew change crisis is at a new level. The International Transport Workers Federation reports that there are now between 50 and 80 ships with Australian coal on board languishing at anchor off Chinese ports. Some of these ships have been at anchor for over five months after loading in Australia. Many have had seafarers on board for up to 15 months already.

One such ship is the Jag Anand, an Indian flagged ship carrying coal from Australia to Jingtang in northern China. This ship arrived on 13 June this year and still has not unloaded its cargo. That is five months waiting, and there is no indication of when the ship will be allowed to berth. China is also enforcing a law that non-Chinese nationals may not disembark onto Chinese soil, meaning that, even if the ship can berth, the seafarers will remain trapped aboard. Of the 23 seafarers aboard the Jag Anand, 15 have already been on board for at least 16 months. Three of these are about to hit 20 months of service on board, trapped upon the ship.

This pandemic has made all of us much more aware of the sacrifices that essential workers are making every day. Essential workers have kept our supermarket shelves supplied and stocked; ensured care and hygiene in our hospitals and aged-care homes; and kept our public transport, logistics and food delivery networks running. Our seafarers should not be the forgotten essential service workers across the world. They've kept trade in goods and bulk commodities flowing throughout the pandemic. Australia is one of the countries most dependent on shipping. Over 95 per cent of our export trade is maritime trade. Our mining, farm and other exports live and die by this trade. It is time for Australia to heed the calls of the International Transport Workers Federation and many others and to show national leadership.

Importantly, this report is a bipartisan report. It is to the credit of the chair and the deputy chair that this report has been delivered in the fashion it has. The report recommends that the Prime Minister lead deliberations by the national cabinet process to produce a national framework that will ensure COVID-19 related measures imposed by states and territories do not prevent the timely changeover of international maritime crews. Further, the report also recommends that the national cabinet design that framework so that states and territories remain compliant with national obligations in the event of future crises that require responses falling under the authority of subnational governments, or states—crises like the one unfolding at ports along the eastern coast of China.

I commend this report to the Senate. I'm grateful to the members of the Joint Standing Committee on Foreign Affairs, Defence and Trade for the recognition of the crew change crisis and for their work over the past months to identify and explore the impacts of COVID-19 on our security, defence, industry, diplomacy and vital trade and supply lines. I seek leave to continue my remarks later.

Leave granted.

Janet Rice (Victoria, Australian Greens) Share this | Link to this | Hansard source

I wish to take note of the report of the Joint Standing Committee on Foreign Affairs, Defence and Trade, Criminality, corruption and impunity: should Australia join the Global Magnitsky movement? The Greens welcome this report and really welcome the multipartisan support that the report has. We are very pleased, the report having been presented, to know that it's got support right across the parliament.

We believe that universal human rights are fundamental and must be respected and protected in all countries and for all people. That means we want to see greater international respect for and protection of human rights. As well as governments, we want to see non-government entities, including individuals and corporations, respecting human rights and being accountable for human rights violations. People who are responsible for human rights crimes need to face the consequences of their actions. Magnitsky legislation, as is discussed in this report, would enable us to bar human rights abusers from visiting Australia or from having financial interests in Australia, including, for example, safe haven bank accounts in which they can keep their wealth that has often been gained by corrupt means.

In talking to this report tonight I want to note that we are hopeful the government will act urgently to provide exposure drafts to develop and then provide exposure draft legislation that can implement the key recommendations from this report. I'm a member of the committee now. I wasn't during the process of this report being developed, but I have been engaged in following it through its development. From here, the Greens will be working to make sure that any Magnitsky legislation is robustly drafted and has real teeth. We need to get the detail right so that it can't be misused and, in particular, so that there is independence and objectivity in determining who is caught up under this legislation, but we need to act urgently.

We need to act urgently for two reasons. The first, of course, is that the sooner it is implemented the sooner it will, hopefully, discourage some of the more egregious attacks on human rights that are occurring globally, including extrajudicial killings, torture, arrests and disappearances of people who express dissent to authoritarian governments. Tragically, we know that these types of attacks are occurring across the globe far too often and extensively in multiple regimes across the world. Just in the last couple of weeks I have spoken in this place about human rights violations in West Papua, India, China, Hong Kong, Cambodia, the Philippines, Bangladesh, Palestine, Colombia and Ethiopia and expressed concerns about due process in Samoa and Sri Lanka. The second reason we need to act urgently is that with other jurisdictions having enacted Magnitsky legislation, including the US, Canada and the UK, there is a significant concern that unless Australia acts we will become the safe haven for human rights abusers, because other countries have restricted access by these people to their shores.

In conclusion, the Greens believe that a Magnitsky act would provide a really powerful tool to address human rights abuses and that we should be urgently working to be putting such legislation in place here in Australia.

Kimberley Kitching (Victoria, Australian Labor Party, Shadow Assistant Minister for Government Accountability) Share this | Link to this | Hansard source

I wish to associate myself with the remarks of Senator Fawcett and Senator Rice on the report Criminality, corruption and impunity: should Australia join the Global Magnitsky movement?from the Joint Standing Committee on Foreign Affairs, Defence and Trade.

A few years ago I saw Bill Browder, the employer of Sergei Magnitsky, being interviewed on Australian television. In that interview he outlined what had happened to Sergei Magnitsky. Effectively, he was employed by Bill Browder in Moscow and uncovered the embezzlement of hundreds of millions of dollars by the police force there. I won't go through the complicated financial settings of that company, but Sergei Magnitsky was detained by the police—the same people who had done the embezzling—and was tortured to death in jail. He was never charged. Obviously, this is a terrible and egregious violation of anyone's rights.

What then happened was that Bill Browder would not rest until Magnitsky legislation had been enacted around the globe. He went firstly to the United States, where former senator and presidential candidate John McCain was very instrumental in helping pass the first lot of Magnitsky legislation, and then the Global Magnitsky Act was passed. The UK has it, as Senator Rice has said, and Canada has it. The European parliament, just the other night, also approved Magnitsky legislation, and other jurisdictions in Europe have Magnitsky legislation. I think it's very important for Australia to have it. I don't think Australians want to give succour or any sense of security to people who have engaged in gross human rights violations or corruption. We don't want those people to be able to use our rule of law and our system to invest safely their ill-gotten gains. I again thank you, Senator Rice and Senator Fawcett.

Wendy Askew (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Senator Kitching, you'll be in continuation if you wish to continue. Pursuant to the order for rearrangement of business earlier today, we will now move to government business.