Industry Policy - What's new

SHIPPING REFORM - CHRONOLOGY OF PROGRESS
 
1980 - Appointment of Sir John Crawford as independent Chairman of a Joint Committee comprising shipowner and union representatives announced by the Fraser Government.

1982 - Minister Ralph Hunt of the Fraser Government approves government financial support for training for seagoing employees and the establishment of the Australian Maritime College.

Crawford Report completed, recommending that:

  • Financial incentives be made available providing manning meets levels determined by a manning committee. Extension of investment allowance to ships in international trades (previously applicable to coastal vessels only) results in orders for 12 new ships.
  • Depreciation of 20% pa commencing in the year prior to commissioning (previously 6.25% pa).
  • 2% import duty on imported ships be abolished.
1984 - Maritime Unions under auspices of ACTU release "Proposals for the Efficient Development of the Australian Maritime Industry"

Crawford financial package comes into force April 1984.

Report of Joint Shipping Task Force comprising representatives from the Departments of Trade and Transport, and the Office of the Minister for Trade. The report looked at productivity, terms of trade (the impact of fob terms), the proportion of trade sold cif and c&f, the improvement to the invisibles account of the balance of payments and the increased contribution of Australian shipping with improved shipping technologies (amongst other things).

The Report of the Joint Shipping Task Force led to an investigation by the Transport Industry Advisory Council (TIAC) in relation to matters including the cost of bunkering, fiscal incentives and working arrangements of ships.

(TIAC comprised representatives from all modes of transport from private industry, government and government-owned enterprises, professional and trade associations, academic institutions and users.)

1985 - On the initiative of Minister Peter Morris of the Hawke Government, the industry parties organise an overseas study mission to study manpower and training developments. Following the report of the overseas study mission, the Minister establishes the Maritime Industry Development Committee (MIDC)
June - Investment Allowance withdrawn after only 14 months availability to overseas trading ships.

1986 - TIAC puts submission to Minister "A Proposal for the Development of Australian Flag Shipping" recommending three year depreciation, beginning in year before commissioning. The report maintained that the expansion of the fleet following the Crawford report was a consequence of shorter depreciation periods, the extension of the investment allowance to overseas trading ships and the manning reductions on which these concessions were conditional.
October - Maritime Industry Development Committee produces its report "Moving Ahead". The report focussed on a radical reappraisal of shipboard management and work practices:
  • crews of 21 on next generation Australian ships
  • create integrated ratings
  • require Australian Government initiatives to provide a commercial environment in which the industry could prosper
  • commends TIAC submission.
December - Government announces endorsement of MIDC report and introduces legislation to provide capital assistance with purchase of new (or newly acquired second-hand) vessels.

1987 - April - Ships (Capital Grants) Act 1987 provides 7% taxable grant to operators of new or second hand vessels providing manning target of 21 is met and maintained:
  • incentive to apply for five years in the case of new tonnage (until 30/6/92) and for three years (until 30/6/90 in the case of modern second hand tonnage).
1988 - ANMA (ASA) puts industry plan to the Prime Minister, Bob Hawke, outlining key reform requirements for an internationally competitive shipping industry.

Shipping Reform Task Force chaired by Ivan Deveson established by Federal Government to develop a strategy for further development of the industry.

1989 - April - Report of Shipping Reform Task Force handed to Minister Ralph Willis. The SRTF developed an agreed package of reforms which it anticipated would reduce the operating costs of Australian ships to that of comparable OECD ships with national crews.

Government accepts broad thrust of SRTF and (amongst other things):
  • extends the 7% Capital Grant and accelerated depreciation for additional five years - to 30/6/97
  • rebates from 1/7/92 that component of marine diesel excise allocated to road and rail (about $3 m pa).
  • contributes up to $24,000 per package to a one-off redundancy scheme
  • introduces programs to reduce crews on existing and new ships
  • provides joint funding on a dollar for dollar basis for retraining up to a ceiling of $5 m over three years for associated non-tuition costs
  • established the Shipping Industry Reform Authority for three years from 1/7/89 to oversee the detailed development and implementation of the reform strategy.
July - SIRA commences.

1990 - January - Manning reductions on Crawford and pre-Crawford vessels completed - average reduced from 31.2 to 25.5 in these vessels.

1991 - July - Overseas study mission undertaken by SIRA:
  • meets with government, shipowner and union representatives in each of 6 OECD countries and seeks information through diplomatic channels on a further 34 countries (14 responses received).
October - manning reductions in Crawford vessels to MIDC levels completed - average crewing levels reduced from 25.9 to 21.9 in these vessels.

1992 - Negotiation for continuation of SIRA process beyond scheduled end of SIRA1 (30/6/92) takes place in Shipping Reform Negotiating Committee.

August - SRNC reports to SIRA and recommends a further 3 year program of reform:
  • objectives of further reform: reduction in average manning to 18.5, introduction of enterprise employment and reduction in crew-to-berth ratio.
1993 - SIRA extended - SIRA2 established to continue for three years (from 1992) until 30/6/95. Rae Taylor appointed Chairman.

1994 - Average crew sizes reduced to 18.

August - Final report of SIRA2 provided to Minister for Transport: SIRA finishes twelve months early. Taylor report highlights competitive gap and creates basis for analysis up to and including the SRG process five years later (see below).
  • SIRA2 report included detailed analysis of competitive gap between Australian and representative foreign shipping.
September - dispute over sale of ANL:
  • ASA proposes inclusion of PAYE measure in packaged resolution of ANL sale dispute negotiated between Government and maritime unions.
  • Government embraces PAYE measure as part of resolution of ANL dispute.
November - Minister for Transport, Laurie Brereton commissions Mick Young to facilitate negotiation of crew efficiency savings equivalent to savings to be generated by PAYE rebate.

Negotiated outcome in Maritime Industry Reform Agreement 1994

December - Legislation enacted to give effect to PAYE rebate scheme commencing 1/7/95

1995 - July - PAYE rebate scheme commences.

1996 - May - Coalition Government announces legislation to terminate:
  • the PAYE rebate scheme as at 30/6/96,
  • the Capital Grant (to have been applicable to vessels delivered on or before 30/6/97) as at 30/6/96, and
  • the accelerated depreciation provisions.
Government subsequently announces Capital Grant extension to 30/6/97.

August - Minister John Sharp established Shipping Reform Group (SRG)

1997 - March - Report of Shipping Reform Group handed to Minister Sharp.

August - Minister Sharp seeks alternative proposals to SRG recommendations.

September - Negotiations commence with MUA for introduction of enterprise employment.
  • Ministerial responsibility for maritime industry transferred from Transport and Communications to Workplace Relations and Small Business.
November - Minister Reith states industry must fix enterprise employment and crew-costs before consideration would be given to fiscal measures.

1998 - April - Document detailing implementation of enterprise employment of ratings finalised.

July - Implementation period of enterprise employment commences.

August - Minister Reith agrees to consider progress made on enterprise employment and crew-cost reductions and establishment of working group to consider mechanics of determining how compliance with enterprise employment implementation and crew-cost reductions might appear in legislation associated with fiscal measures.

October - Coalition Government re-elected. Maritime returned to Transport Portfolio and John Anderson, Deputy Leader of the National Party appointed Minister for Transport and Regional Services. Cheryl Kernot appointed Shadow spokesperson for Transport and Regional Services.

November - Shipping industry meets with Minister Anderson. Working Group to be implemented and industry awaits response from Minister as to detail of Working Group arrangements

December - Shipping Reform Working Group commences its deliberations.

1999 - 13 May - Shipping Reform Working Group Report handed to Minister Anderson

1st December - Minister Anderson announces Government will not provide fiscal assistance to Australian shipping industry but that Cabinet is still considering maritime policy issues.

2000 - February - ASA members meet and determine to cease seeking fiscal assistance from Caolition Government and to ensure instead that Australian owners and operators are not disadvantaged in Australian domestic shipping vis-à-vis their foreign competition in Australian domestic trades.

2001 - March - ASA publicly promotes inequity of application of Australian laws imposing costs on Australian ships while Government promotes use of permits under Part VI of Navigation Act 1912 which allows foreign ships to compete with Australian ships but escape costs imposed on Australian ships because foreign ships escape importation under Customs Act 1901.

2 April - Letter received from Secretary, DoTaRS saying the Department is investigating and analysing the industry's concerns over being disadvantaged by imposition of Australian legislation not applicable to foreign operators.

27 September - Full Bench of the Australian Industrial Relations Commission finds that foreign crews in CSL (formerly Australian but now foreign flag, foreign crewed) vessels operating continuously in coastal trades under Continuing Voyage Permits should be subject to award conditions.

October - Coalition Government re-elected.

13 December - Minister Anderson announces that the Australian shipping industry's contention that it is subject to an anti-competitive regulatory regime is "not without merit".

December - Announcement of Independent Review of Australian Shipping (IRAS) sponsored by ASA and Co-Chaired by former Ministers for Transport the Hon. John Sharp and The Hon. Peter Morris.

December - Cabinet considers a package of measures designed by Department of Transport (without consultation with industry) to assist shipping industry by supporting a maritime skills base. Industry advises these measures may not be ideal and Cabinet refers matter to an Inter-Departmental Committee.

2003 - 3 March - ASA meets with Minister Anderson seeking clarification of regulatory issues surrounding shipping legislation.

7 March - ASA sends letter formalising request for clarification of regulatory issues.

Prepared by ASA Secretariat - Updated July, 2003

TOP OF PAGE

News

15 July, 2008
AusIntermodal 2008 conference >>
9 June 2008
Excitement in the air: Teresa Hatch takes helm of ASA >>
26 June 2008
ASA Welcomes Changes to Permit System >>
26 June 2008
ASA not surprised by statistics >>
18 June 2008
ASA promotes careers at sea at Employment Expos >>
10 June 2008
Industry Celebrates the Career of Lachlan Payne >>
18 March 2008
Review of Shipping Policy and Regulation >>
News archive
Contact info:

Australian Shipowners Association
Level 1, 4 Princes Street
Port Melbourne
VIC, 3207

Telephone: 613 9646 0755
Facsimile: 613 9646 2256