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COASTAL SHIPPING
POLICY SETTINGS CRUCIAL TO REVITALISE THE COASTAL FLEET
Change to current coastal shipping laws have to be the right changes, writes Teresa Lloyd
The need for certainty and stability
of coastal shipping policy settings
in Australia remains critical. Do the
current cabotage arrangements need to
be changed? Yes, they do.
There are currently 50 vessels that
hold a General Licence. That’s probably
a lot more than anyone realised. But
the detail is important. They are: eight
vessels that work in/across Bass Strait;
five dry bulk carriers; five expedition
cruise vessels; one research vessel; 31
servicing northern Australia including a
large number of landing barges. Suffice
to say, the activity of these General
Licence vessels is not preventing
the presence of the foreign-flagged
shipping in coastal trades.
However, it is recognised the process
for obtaining a temporary licence to
work on the coast can be a deterrent.
There are simple fixes to maximise
use of the blue highway and remove
red-tape burdens. These process
improvements are clearly described in
the green paper released in 2016 (mial.
com.au/our-work/coastal-tradinggreen-paper)
and would result in
almost all voyages being undertaken
with the bare minimum of paperwork
and approvals. Most would not even
require an application, far less a
variation, under the proposals put
forward. And, this is possible precisely
because the vast majority of coastal
shipping is undertaken by foreign ships.
Importantly, these changes can
liberate the vast majority without
destroying the fabric of the regime
that offers fair and reasonable checks
and balances for what is left of the
Australian industry. Why hasn’t
this already been done? Failure to
progress change sits squarely with
the proponents of the proposal put
forward by the government. MIAL has
clearly identified the need for a radical
change in the approvals process and
yet the government proposal went
nowhere near far enough in removing
red tape for the voyages where there
is no Australian ship (which is almost
all voyages) and too far in terms of
undermining the integrity of the regime
in terms of tolerances for the few
voyages where it does matter.
Coastal voyages by foreign ships
could be free of application and
variation processes today had the
proposals been properly considered
and drafted – and it is a great shame
this is not the case. But all this is really
tinkering at the edges. A desire for change
beyond the paperwork and processes has
been expressed continually for years by
the full range of impacted stakeholders.
PRAGMATISM
What is very apparent is that after all
this time, there is no genuine desire for a
solution because many parties involved
remain unwilling to be pragmatic. The
way forward cannot be to the benefit of
only one party; there must be a way to
accommodate all interests. Pragmatism is
the only way.
Australia needs a clear vision to create
a stable and sustainable coastal shipping
policy. Such a vision needs to tackle the
core questions:
• What maritime capability does the
country need?
• How will it be provided?
• Who is going to pay for it?
It is possible to design a regime that:
• supports Australian businesses
involved in providing shipping services;
• provides users of shipping services
with the service they need at a rate
they can afford;
• provides work for a strategic group
of Australian maritime workers;
• allows Australia to capitalise on the
natural advantages it has to be a
strong maritime nation with resultant
benefits to the nation (economic
and social)?
Above: Teresa Lloyd,
CEO, Maritime Industry Australia
The government, as custodian of the
national interest, can make this happen.
We need to think differently about
how Australia can maximise the natural
advantages we have to be a shipping
nation, particularly how we see our
coastal shipping task working. It is time
to start looking at new options such
as the use of mini-ports and short-sea
shuttle services.
CABOTAGE
As to the calls for cabotage to
be abolished, as it is a form of
protectionism, I say, “show me nation
that doesn’t protect its shipping
industry”. The nations that provide
the ships to carry international cargos
all incentivise their industry – in many
cases to an extreme extent. The effect
is precisely the same as protectionism,
or cargo reservation. One person’s
incentive is another person’s subsidy.
There is no such thing as a level
playing field in shipping – everyone is
protected somehow, it’s just a matter
of how. Tax breaks, international
employment arrangements and
other incentives go unremarked upon
while cabotage or cargo reservation
appear with flashing neon headlines.
Australian shipping businesses don’t
want cabotage necessarily, but they
do want an equivalent to give them
half a chance at competing with
other nations that incentivise and/or
subsidise their industry in their own
country. As contributors to the national
economy and employers of Australians
both on shore and at sea, it makes
sound economic sense to ensure these
businesses have that opportunity.
The opportunity still exists for
Australia to choose what role we want
our maritime industry generally, and
coastal shipping sector in particular, to
play. We are a maritime nation and we
owe it to ourselves to retain some level
of indigenous capability. To do this, we
require strategic maritime skills to make
our ports and blue highway workable
and a few critical assets that can both
train these people and be deployed as
and when needed in the interests of
Australian and its citizens.
The government can and should
provide the vision and the environment
to make this happen and the industry
players can and should be pragmatic in
their support.
Jim Wilson
30
First published in 1891
July 2018 thedcn.com.au