: That the s33 Comments by third parties’ provision in the Coastal Trading Act be strengthened to provide for monitoring, reviewing and scrutinising the awarding of Temporary Licenses in accordance with the principles outlined above. The proposal for the review reflects stakeholder concerns that the implementation of the current Act has not achieved its purpose, and that strategic fleet cargo volumes and trade could be undermined by the current approach to awarding of Temporary Licences. RECOMMENDATION The Taskforce recommends that the Government provide additional funding to the Fair Work Om- budsman to increase compliance activities relating to the payment of Seagoing Industry Award 2020 Schedule A Wages on foreign vessels operating un- der Temporary Licence. The Taskforce notes there is limited information available regarding the compli- ance of foreign vessels engaged in coastal trading under a Temporary Licence with the requirement to pay additional Schedule A wages from the third voyage onwards in any 12-month period. Stronger administrative oversight will provide information to Government to better understand the extent of non-compliance and enable decisions to be made regarding what measures are required to increase compliance. RECOMMENDATION The Taskforce recommends that the Transport and Logistics Jobs and Skills Council (JSC) expedite its Maritime Workforce Development Plan and work in collaboration with Commonwealth and state gov- ernment agencies and industry to ensure that the maritime training package is fit for purpose and con- siders the needs of Australia’s maritime industry in the context of implementation of the strategic fleet.
option of expanding the use of a Group Train- ing Organisation to coordinate the placement of trainees/cadets in both on-the-job and off-the- job placements : consider options to accelerate the supply of Australian seafarers such as revalidation and recognition of current competencies for partial- ly qualified seafarers. RECOMMENDATION The Taskforce recommends that the Government should legislate to implement a training levy on mar- itime industry participants that are beneficiaries of STCW qualified seafarers to fund a financial assis- tance package to assist employers and sponsors of trainees and cadets to meet the costs of training sea- farers to obtain STCW qualifications. RECOMMENDATION The Taskforce recommends that a Post Implementa- tion Review be conducted a year after the first stra- tegic fleet vessels are selected and receive govern- ment assistance. This should also cover the impacts of training and workforce initiatives. Comrades, it’s been a relentless battle—one we’re fully committed to as we tirelessly advocate for the return of Australian Coastal vessels to our shores. The MUA WA branch stands ready to confront this challenge head-on. We will work with Governments to see this fight won and will hold them to account on the promises they make. But let’s not mistake this for the endgame, comrades. It’s crucial we continue pushing for the implementa- tion of the taskforce recommendations to ensure the environment for shipping to return is created. No lib- eral government would do the this, so we must push our Labor Governments to make sure it gets deliv- ered. It’s clear a Liberal government wouldn’t drive this change, so it falls on us to rally our Labor Govern- ments and ensure delivery.
RECOMMENDATION The Taskforce recommends that the strategic fleet comprise vessels of the following types, and be of a size that will meet the three prime strategic purposes of the fleet to respond to disruption events, support sovereign manufacturing industries and to support the Defence Forces:
RECOMMENDATION The Taskforce recommends the identified cost gap between Australian and foreign vessels be addressed through a combined measure of shipping taxation in- centives in line with international norms, and Austra- lian Government financial assistance provided to ship owners and operators.
: Container vessels with geared ship cranes capa- ble of independent container operations.
Proposed changes to the taxation arrangements are:
: Multipurpose vessels (MPV) capable of carry- ing project cargo, containers and some bulk cargoes, and unload these using geared ship cranes.
: Reforming the seafarer tax offset to remove the current restrictions on seafarer eligibility so the offset applies to all Standards of Training, Cer- tification and Watchkeeping (STCW) qualified seafarers and for any shipping activity in which those seafarers are engaged; : Reforming the shipping corporate income tax exemption to introduce deemed franking cred- its in respect of dividends to shareholders, to make vessel ownership and/or operation from Australia more internationally competitive; and : Extending application of the existing shipping tax incentives and the corporate income tax exemption to qualifying vessels servicing the offshore sector. The Taskforce considers that a Government assistance program provides the mechanism by which to bridge the cost gap and allows the Government to target capabilities consistent with the prime strategic needs identi- fied by the Taskforce – to respond to disruption events, support sovereign industry and assist Defence. The Taskforce further considers that it is important to the success of this program that any assistance that is provided to eligible appli- cants, is done so with appropriate safeguards to ensure value for money is achieved and oth- er behaviours such as price-gouging are guard- ed against. The Taskforce considers that this could be achieved through an open, transparent, and competitive tender process. The Taskforce notes that while Government assistance to ship owners and operators alone would be sufficient to close the cost gap, the magnitude of Govern- ment assistance required would be reduced with application of a revised seafarer tax offset and revised corporate taxation exemption which, if applied broadly to Australian vessels, will have the advantage of promoting more general in- vestment in the Australian shipping industry. This in turn will contribute to a broader pool of Australian vessels and skilled seafarers, which the Government could draw upon when required.
: Roll-on roll-off/roll-on lift-off (RO-RO/RO-LO) vessels.
: Liquid bulk vessels configured to carry multiple grades of fuel and chemical products in inde- pendent tanks. : Dry-bulk vessels.
: Break-bulk vessels and Local Government.
RECOMMENDATION
The Taskforce recommends that the Government should review the Coastal Trading (Revitalising Aus- tralian Shipping) Act 2012 to ensure the object and the provisions of the Act support the implementation of the strategic fleet. The review should occur after the design of the assistance and taxation measures have been completed, so that specific legislative pro- visions reflect implementation arrangements for the strategic fleet.
The Taskforce considers that the following should be key considerations of the review:
As part of this work, the JSC should:
: That a strategic fleet ship be defined.
: Map relevant existing training programs and initiatives to assist people interested in work- ing in the maritime industry to navigate career pathways : Provide advice to the Government on options to better coordinate designing and implement- ing initiatives to develop Australia’s maritime workforce : Undertake maritime workforce planning, in- volving development of seafarer supply and demand forecasts : Consider how to better coordinate placement of cadets and trainees on vessels across the Australian and international shipping industry to complete mandatory sea time requirements to obtain STCW qualifications, including the
: Ensure that cargo volume and trade (including strategic fleet cargo/trade) on General Licence vessels are not undermined by the awarding of Temporary Licences. : A General Licence holder (including a General Licence owner/operator of a strategic fleet ship) be given the first right of refusal to arrange for a Temporary Licence ship/s to carry cargo in the trade of the General Licence ship/s cargo in excess of that able to be transported by its General Licence ship/s. : If the General Licence ship owner/operator does not exercise that right, the owner, charterer, master or agent of a vessel, or a shipper (as defined in the Coastal Trading Act) have the opportunity to apply for a Temporary Licence to carry that cargo/ trade.
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