Shipping reforms: Albanese pushing an empty vessel

09/09/11

The Hon Warren Truss MP
Shadow Minister for Infrastructure and Transport

Federal Infrastructure and Transport Minister Anthony Albanese has again used flamboyant language to sell proposed changes to Australia’s shipping industry today, but has withheld the details of how the proposed measures can deliver what is being promised.

“Knowing how beholden Minister Albanese and Labor are to the Maritime Union, Australian shipping has every reason to be suspicious about this so-called reform package,” Leader of The Nationals and Shadow Minister for Infrastructure and Transport Warren Truss said today.

“While it promises benefits to some shippers, everything will depend on the undisclosed detail and the accord being proposed between shippers and the unions.

“Australia’s shipping industry has been uncompetitive and in decline, dropping from 55 vessels in 1995 to 22 today. Shipping has also been losing its share of the domestic freight task at a time when we need to move more cargo by ship to take pressure off our roads.

“Cost pressures are critical. Right now sugar is being shipped from overseas direct to our southern ports because it’s cheaper than shipping it from eastern Australia.

“The abolition of single voyage permits, except in times of national emergency, has the potential to make domestic freight movement by ships between Australian ports even less competitive.

“This upward pressure on costs will also be compounded by the carbon tax. Under the 6.21 cent per litre slug on coastal shipping fuel as part of the carbon tax regime, everything being shipped by Australian vessels will be more expensive, but if you want to ship those same goods in from overseas they won’t incur this tax.

“The decision to grant more generous income tax and depreciation arrangements will be welcome by seafarers and the Australia’s shipping industry, but this gesture will undoubtedly encourage other Australian industries facing international tax disadvantages to demand similar concessions.

“Those industries would have a fair case. If it’s good enough for the shipping industry then why not food producers, car manufacturers or the tourism industry? If seafarer’s income earned offshore is tax-free why not other overseas workers?

“QANTAS and other Australian airlines face massive competition from airlines based in low tax countries or who receive special government concessions.

“The proposed compact between the union and shippers will be critical to competitiveness, even with these concessions. If the costs of crewing ships in Australia are over-the-top compared to world standards, then our industry will continue to decline.

“Australians are tired of overblown grand announcements with no detail, designed to take our minds off a plethora of government failures and scandals. Industry will need to see the details before it can be confident these announcements will make any real difference.”