DCN May Edition 2019

ELECTION 2019
What our sector leaders think
Industry group leaders have their say on what should
be the priorities for the next government of Australia
Rod Nairn, CEO,
Shipping Australia
The best interests of Australia are served
by focusing on optimising the benefits that
international shipping provides. Shipping
should not be used as a political pawn.
Shipping Australia is disappointed
that both the Coalition and Labor are
committed to imposing a new biosecurity
levy, an inefficient new tax on imports
which will cost every Australian a lot
more than if the same amount of revenue
was raised through an efficient tax such
as GST or income tax. But the public
has no escape from this approach as it
seems one of the only areas of bipartisan
agreement is how to extract money from
ordinary Australians without them
realising it.
Shipping Australia is also concerned
the Australian public is being misled over
the contribution of the international
shipping fleet to Australia’s economic
wellbeing.
Australia’s maritime security is best
served by a strong Navy and Australia’s fuel
security is best served by greater onshore
storage reserves and clever use of ships of
multiple flags to carry our fuel imports. The
more flags we utilise, the more resilient the
fleet and the better Australia is protected.
If some nations become unable or unwilling
to trade with Australia, there still will be
many others who will. The alternative, to
carry all our oil supplies in Australianflagged
and crewed ships would be foolish.
It would leave Australia in a position of
being held to ransom by a militant union,
even when there is no war.
Domestic freight policy should include
promotion of shipping as a mode. As an
island nation, Australia is dependent
on shipping for most of its trade.
Shipping should be acknowledged as the
preferred mode of long-haul domestic
freight movement because it is more
economical, more efficient, safer and more
environmentally sustainable than other
transport modes. It is also able to deliver
oversized, heavy and bulky cargo with
minimum impact.
It is imperative for any elected
government to include coastal shipping,
alongside road and rail, in any business
case related to infrastructure investment
projects. Promoting modal shift to sea
freight must be part of its national freight
priorities. Shipping Australia would be
happy to see Australian flag ships operating
at a profit in domestic and international
markets. But the fact is this will not
happen until the ships are automated to
reduce crew costs. Any talk of subsidising
Australian flag ships to carry cargo is
ludicrous. That would be asking ordinary
tax-paying Australians to subsidise wages
of a chosen few.
Commercial shipping is a service,
it is a means to an end, not an end in
itself. Shipping is needed to move cargo
internationally or domestically. You can
control it through regulation, but you
don’t have to own it to use it.
We would like to see a simple regulatory
environment which encourages a cost
effective and flexible shipping service
to operate for the benefit of Australian
producers and customers. The objectives
of the legislation should be prioritised
based on the provision of public benefit.
Mike Gallacher, CEO,
Ports Australia
As both major parties start to unveil their
platforms for the upcoming election,
we already know one thing. Central to
both their platforms for election are the
promises to reduce congestion and create
jobs. The question is what policies are they
looking at to achieve these promises?
Our sector knows that the freight
and supply chain is an important key to
delivering on both these promises and
more. We know that freight shares the
roads and rails with commuters, and we
know freight makes up a considerable part
of the cost of doing business. Therefore, if
you improve the regulatory framework and
target investments in freight, allowing it to
operate more efficiently, we know that we
can reduce congestion and the cost of
doing business.
22 May 2019
thedcn.com.au