Captain William Bolitho AM was the inaugural Chairman of the Australian National Maritime Association (ANMA) when it was created in 1986. Bill had been a senior shipping executive for some time and, at the time ANMA was created, Bill was also Chairman of the Australian National Line and on the Board of QANTAS.

Bill Bolitho believed passionately in the merits of Australia having her own shipping capacity. He held that Australian should benefit from the carriage of her own external trade; this concept formed the basic platform on which the strength of ANMA, and later the Australian Shipowners Association, was built.

Bill remained in the Chairman’s role with ANMA until 1994. During those eight years of his Chairmanship, ANMA and its executive staff developed a strong leadership role in the industry, working closely with Governments and the maritime unions to usher in unprecedented reforms in the Australian shipping industry.

Bill Bolitho was a champion for Australian shipping and a man who epitomized that notion of having the courage of his convictions. The ANMA and ASA staff who were privileged to work with Bill during his lengthy Chairmanship of the Association were inculcated with his ideas. The ideas pursued by the Association have changed as the industry has changed but the idea of pursuing with intellectual rigour a beneficial outcome for Australian’s is one that has not needed to change. That lofty and worthwhile objective is Bill Bolitho’s legacy to the Australian shipping industry.

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Anthony Albanese's attraction to maritime issues shows no sign of abating, with the federal transport minister yesterday launching an inquiry into piracy.

"The Government is acting to ensure Australia has an appropriate framework in place to safeguard our maritime industry, our international trade effort and the many Australians who travel through international waters every year," Mr Albanese said.

The Inspector of Transport Security, Mick Palmer, will head the inquiry which will investigate the impact, or potential impact, of piracy on Australian registered and international trading ships including their crews and passengers.

It will also examine the effect of piracy on Australian maritime trade.

Inspector Palmer will liaise with the United Nations, the International Maritime Organization and other international maritime bodies to ensure Australia 's efforts complement wider international initiatives.

He will present his report by the end of September this year.

The Australian Shipowners Association supported the inquiry.

“We appreciate the Government's interest in this major security issue which is affecting the entire international shipping community and we welcome the opportunity to make submissions to the inquiry," executive director Teresa Hatch said.

“An increased role by Australia in finding solutions to the current piracy problems, including assisting international forces, would be welcomed by the shipowning community.”

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“Lachlan Payne has supported and lead the shipping industry for decades and brings a high level of expertise and understanding of the local and international operating environments.” said Teresa Hatch, Executive Director at ASA.

“Mr Payne is well known and regarded throughout the international shipowning community and has experience at the highest levels of international negotiations at the ILO and other fora.” Ms Hatch said

We are sure that this appointment will be a positive inclusion to the AMSA Board.

Lachlan Payne was the Chief Executive of ASA between 1987 and 2008, stepping down from the post in July last year.

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“The ‘Rebuilding Australia’s Coastal Shipping Industry’ report set in motion some important discussions and the Government response to that report has been eagerly awaited,” said Teresa Hatch, Executive Director at the Australian Shipowners Association.

“The industry has been urging action and the establishment of this group shows that the Government is sensitive to business needs and is responding.” Ms Hatch said.

ASA remains committed to working with the Government and other stakeholders to ensure that the right policies are put in place to attract new investment, deliver internationally competitive shipping services and grow the maritime skills base in Australia.

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Dates and times of the public meetings are as follows:

Canberra 16 December, 9am-11am
Sydney 17 December, 8am-10am OR 10.30am-12.30pm
Melbourne 17 December, 8am-10am OR 10.30am-12.30pm
Brisbane 18 December, 9am-11am
Perth 18 December, 9am-11am
Hobart 18 December, 9am-11am
Adelaide 18 December, 9am-11am
Darwin 18 December, 9am-11am

For more detailed information on locations of these sessions, please contact the ASA secretariat on (03) 9646 0755.

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“David has made a significant contribution to the Australian Shipowners Association and the Australian shipping industry in general,” said Teresa Hatch, Executive Director of ASA. “On a broader scale, David has been instrumental in building the strong relationships which have secured Australia’s place within the international arena, particularly the Asian Shipowners Forum and the International Chamber of Shipping.”

David is a highly regarded and well respected participant in the international shipping community, being a Member of the International Chamber of Shipping Executive Committee and one of the seven Chairmen that make up the leadership of the Asian Shipowners Forum (ASF).

“ASA’s position within the Asian Shipowners Forum is highly valued by them and I am very pleased to have played a part in the decision to create a permanent office for the ASF. This significant step will assist in broadening the voice and influence of our Asian region in international maritime affairs.” said Mr Sterrett.

David has seen both the international and domestic industry change remarkably since his introduction to the Australian industry 16 years ago.

“The industry has undergone major changes and the ASA has changed accordingly so as to represent its members in the most appropriate way. Today the small team in Princes Street is one the ASA membership can be extremely proud of,” said Mr. Sterrett

“However the main game in town now is how much real progress can be obtained from the recommendations of the House of Reps report into re-building Australia’s coastal shipping industry. We in the industry know that to fix coastal shipping we have to fix all shipping, as no one sector is independent of the others. Skills for instance are common. Federal governments in my time are not known for their ability to implement shipping report recommendations – let’s see if the Rudd government can leave a lasting legacy that will bring Australia to its rightful place as a significant shipping nation.” said Mr Sterrett.

Previous appointments held by David include Managing Director and Chief Executive of ASP Ship Management, CEO of the HM Bark Endeavour Foundation, Chairman of the Australian Maritime Industry Compensation Agency, Director and General Manager of Bibby Line, UK and Chairman of Bibby International Services. David commenced his career as a seagoing Engineer spending 13 years at sea, the last four as Chief Engineer. David is the current Chair of the Australian Maritime College Council.

“The pragmatism and leadership shown by David throughout his term as the Chairman of ASA is something that the industry will long remember and be very grateful for,” said Ms Hatch.

Mr. Noel Hart, General Manager of North West Shelf Shipping Services Company will be appointed ASA Chairman at the Annual General Meeting of ASA next Tuesday, 11 November.

Media Contacts: Robyn Farrar - 0400 546 561

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“The report opens several doors to increased investment, improved efficiency and enhanced environmental performance.” said Teresa Hatch, Executive Director at ASA.

“Coupled with the recommendations aimed to provide clarity and consistency of decision making, the business environment for shipowning and operating has the potential to be a whole lot more attractive than it has been in recent years.”

Importantly the report opens with the statement that “The strongest argument for revitalizing Australia’s coastal shipping industry is an economic one.”

“The economic arguments are always debated but surely the economics are there for all to see – Australia could grasp the opportunity to value-add to our exports by providing the shipping services as well. This kind of recognition by a bipartisan committee is an important first step.” said Ms Hatch

One area not canvassed in the report but raised in the ASA submission related to a second register for the industry to reinvigorate Australian participation in international trades.

“The terms of reference were focused on coastal trades so we are not surprised that this one went through to the keeper this time. But these things are a step by step process and we still believe there is merit in the idea.” said Ms Hatch

The Committee report provides a sound basis for the next stage of work to continue from and ASA is ready to work with government to overcome the hurdles that may stand in the way of implementation of the recommendations. For instance, the comments from Treasury officials that improving the career path for seafarers by making their income tax internationally competitive would encourage domestic seafarers to undertake overseas employment, thereby diminishing the maritime skills base in Australia.

“We’re a little taken aback by this view – are we going to call all the young sports people, actors, lawyers and accountants who choose to work overseas back home as well? A career path is a career path no matter what your occupation.” said Ms Hatch

This is the second bi-partisan parliamentary report in just over a year that has recommended a change to the seafarers taxation provisions. In August 2007 the Senate Committee report into ‘Workforce challenges in the transport industry’ made a similar recommendation to that released today in the House of Representatives Committee report.

Media Contacts: Robyn Farrar - 0400 546 561

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ASA’s Executive Director, Teresa Hatch said several key recommendations including the introduction of a voluntary tonnage tax system, reintroduction of accelerated depreciation, the review of the income tax application to Australian seafarers serving overseas and a national training authority are key items stemming from today’s report.

“We are eager to look through the report in more detail, however, at first glance we are pleased to note several key recommendations that, if properly implemented, can make a world of difference to the our national shipping capability – not just the coastal shipping sector,” said Ms Hatch. “We now look forward to working with government to implement these new recommendations.”

The report, which was released this morning, has been eagerly anticipated by the shipping business community for several months, following an exhaustive process involving submissions from across the industry.

Media Contacts: Robyn Farrar - 0400 546 561

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Every year on WMD, the ASA host a breakfast that gathers together key industry stakeholders from across the country to promote the annual WMD theme and in order to foster an opportunity for both ASA Members and non-members to interact and network with one another. This year’s theme of IMO and their 60 year history in the service of shipping was an opportunity for those present to reflect on how far we have come in the recent decades, and to consider where we must move next.

Guest speaker Warwick Norman of Rightship Ship Vetting Specialists (Melbourne) delivered a compelling presentation that focused on the advances made to date in the international shipping industry from a safety and maintenance point of view, also highlighting how far we still need to go in order to reduce the human and financial loss associated with poor environmental and operational standards worldwide.

This year’s breakfast was held at Steakhouse Bluefire in Port Melbourne, which offered a magnificent view of the local marina and the surrounding shipping operations near Pier 35.

Those in attendance at this year’s breakfast included many ASA Members as well as , several new faces from such companies as Holan Fenwick WIllan, Moore Stephens Melbourne and the Port of Melbourne Corporation, in order to help toast the international maritime industry on this important date.

WMD is celebrated every year near the end of September and is used to focus attention on the importance of shipping safety, maritime security and the marine environment, and to emphasize a particular aspect of IMO's work.

Media Contacts:
Robyn Farrar - 0400 546 561

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With the maritime industry’s skill shortage currently at crisis level, both seagoing and non-seagoing careers are affected.

Teresa Hatch, Executive Director of the Australian Shipowners Association, praised the AMC for taking this important step that will help address the major skills shortages facing the maritime industry today.

"This is a great initiative that will feed people into the industry from new streams and strengthen the overall structure of the Australian industry," said Ms. Hatch.

"AMC should be congratulated for this initiative – this is a fantastic step.”

Other industry initiatives, such as ASA’s recently launched Careers At Sea website (www.careersatsea.com.au) and the ab-initio Marine Pilots training are important steps toward finding whole-of-industry solutions which will sustain and re-invigorate the maritime industry.

Media Contacts: Robyn Farrar - 0400 546 561

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Joined by key stakeholders across the shipping sector, the ASA proudly revealed the content of the new website, which acts as a one-stop-shop for prospective students, jobseekers and employers in the shipping industry. The website eliminates the need to visit multiple, often contradictory, careers websites that can discourage and confuse prospective new entrants. CareersatSea.com.au is a major initiative that seeks to address the skills shortage crisis in the Australian shipping industry, bringing together information on the various careers available across all sectors of the maritime industry; as well as offering candidates the opportunity to express interest in seagoing training berths and employment. The website also offers employers the opportunity to post industry specific job ads and boasts two new services known as Sea Recruit and Sea Study, offering employers the opportunity to search though available candidates seeking training berths or seagoing employment.

The Careers at Sea initiative was warmly received by those in attendance and, perhaps most importantly, received enthusiastic endorsement from Minister Albanese, who stated that: “The ASA is playing an essential role in promoting the (shipping) industry” and “Initiatives such as this one will help ensure that our maritime industry continues to underpin our (nation’s) growth and prosperity.”

Acknowledging that “our maritime sector remains a key trade link with the rest of the world”, Minister Albanese went on to state: “For Australia to be able to meet the challenges thrown our way by global economic demands, we need to maintain a dynamic and robust maritime industry. If we are to ensure that Australia’s maritime industry and maritime tradition do not simply become footnotes in our history pages, then we need to act now.”

“The Government recognises that an inadequate pool of skills is a critical risk to our aim of achieving a competitive and sustainable coastal shipping industry,” he said.

“In itself the website is not a solution to the skills problem, but it is a valuable tool and I commend the ASA for its initiative in developing the new site. “

The new Careers at Sea website is live as of today, Friday, 1st August and can be found at www.careersatsea.com.au.

Media Contacts: Robyn Farrar - 0400 546 561

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ASA’s Chairman, Mr. David Sterrett, has expressed enthusiasm and excitement for the future of the Association, stating that: “the emphasis is now on facilitating members’ operations in imaginative, flexible ways rather than trying to create a policy shape, then making the industry fit that shape.”

“Much of ASA’s strong performance in maritime operational and skills issues is a reflection of Teresa’s energy and dedication to the interests of Australian ship owners,” he said. “In her new role as Executive Director, Teresa brings a strong operational flavour to the leadership of the secretariat of the Association.”

Ms. Hatch was originally appointed to the ASA in January of 2003. She comes to the position of Executive Director after many great successes in her previous role as Director of Maritime Operations.

Under Ms. Hatch’s direction, the ASA will continue to thrive and will have much to offer the ASA membership and industry at large in the years to come.

Media contacts: Robyn Farrar 0400 546 561

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The Australian Shipowners Association welcomed this announcement, stating that the changes proposed to the permit system should not impose burdens on users of the permits, and should make the system more transparent.

Teresa Hatch, Executive Director of the ASA, said today that “the foreign users of permits have been referred to as serial participants in Australia’s domestic economy and will now be subject to a more appropriate level of scrutiny.”

She added: “The idea of permits being made available is good; steps are now being taken to have a good administration for their availability.”

The ASA is encouraged by the Rudd Government’s early steps toward creating a level playing field for the Australian shipping industry and anticipates that further positive developments will be revealed with the release of the Standing Committee’s report on Australia’s coastal shipping sector in October.

Media Contacts
Robyn Farrar - 0400 546 561

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The ASA was encouraged by Minister Albanese’s acknowledgment of these statistics. ASA’s Executive Director, Teresa Hatch, welcomed the Minister’s statement that these statistics demonstrate a need for policies that can reinvigorate an Australian shipping industry.

“The Rudd government has recognised the need for legislation which encourages Australians to participate in Australian shipping business, domestically as well as internationally,” Ms. Hatch said.

“As things stand now, Australian law inhibits the emergence of Australian shipping.

“Australian law requires Australians to compete in Australia at a competitive disadvantage,” she said. “It’s like Lleyton Hewitt being required by Australian law to play in Wimbledon with one hand tied behind his back.”

Ms. Hatch expressed an urgent need for the creation of a legislative regime that allows Australians to operate in an internationally competitive way, stating “this is the way to create win-win outcomes”.

“To encourage participation by Australians in our own sea trade, Australia just needs to align itself with what happens in the rest of the world,” she said.

The House of Representatives Standing Committee on Infrastructure, Transport and Regional Development is due to report on the coastal shipping policy, with recommendations on ways to enhance the competitiveness and sustainability of the sector in October of this year.

Media Contacts
Robyn Farrar - 0400 546 561

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With more than 85,000 jobseekers in attendance, ASA’s Employees Relations Officer, Lee Azfar, was instrumental in ensuring shipping was “on the radar” for all in attendance at the Expos, which were held in April and May in Perth, Melbourne and Brisbane respectively. The ASA exhibited alongside a diverse cross-section of industries including government, education, IT, hospitality, retail, tourism, mining, finance and other transport sectors.

Each year the Expo attracts a unique audience of jobseekers, graduates, school leavers, skilled and mature age workers, all keen on finding their place in tomorrow’s job market.

“This is the ideal platform for the promotion of careers in the shipping industry among a varied demographic,” remarked Mr. Azfar.
“We have been able to reach a large audience in key locations around the country, delivering the message that shipping is a thriving industry with incredible opportunities available for those that choose this as their career.”

However he is quick to point out that our work is only just beginning.

“Many attendees, when stopping by the ASA stall, remarked that they ‘hadn’t ever considered shipping as a career!’, proving once again that increasingly promoting our industry and all of its benefits as a career choice is paramount if we are to address and reverse the dire skills shortage issues our industry faces today.”

Mr. Azfar reports that there were a promising number of attendees genuinely interested in a career at sea at all three events, making special note that Brisbane’s Expo yielded a tremendous response, due most likely to the Trade Show being held over the same weekend. A strong turnout of interested and enthusiastic attendees were noted at Perth’s Expo; and an impressive number of jobseekers looking to change careers, particularly those with a trade background and other transferable skills, were noted at Melbourne’s Expo.

It becomes clear that attendance at events such as these is a small step on a long journey toward promoting shipping as a career choice, however when coupled with other incentives, such as the soon-to-be launched Careers at Sea website developed by the ASA, we can begin to look to the future of the shipping industry in Australia with renewed optimism.

For media enquiries please contact:
Robyn Farrar on 0400 546 561

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Mr. Payne’s impressive career consists of more than twenty years in industrial relations and shipping industry policy development and implementation, first as Chief Industrial Officer for the Shipping Industry Employers Industrial Organisation, and subsequently as Chief Executive of the Australian National Maritime Association in 1987, now known as the Australian Shipowners Association. In his private time, Lachlan is well known for his love of all things transport related, including not just ships, but also trucks, cars, planes, sailing boats, trains and even model boat building.

With more than 130 guests in attendance at the celebration, Mr. Payne’s extraordinary contribution to the shipping industry we know today was recognised and reflected upon with speeches given by The Honourable Peter Morris; Paddy Crumlin, National Secretary of the MUA; David Parmeter, Managing Director of TeeKay Australia and David Sterrett, ASA Chairman.

Mr. Payne’s infallible passion for and commitment to the advancement of shipping in Australia formed the focal point of the evening, with an emphasis on the many successes won in industry over the past few decades.

“(Lachlan) built the (Australian Shipowners) Association from modest beginnings into a viable and respected organization,” remarked Mr. Parmeter. “Lachlan was deeply involved in all the major industry reforms, and worked prodigiously to advance the cause of the industry. So many of the things we take for granted today in the industry came about because of the work done through the decade from 1986 to 1995.”

“Lachlan deserves commendation for his initiative, his drive and consistency,” said the Honourable Peter Morris. “He always represented ASA with dignity, competence, industry expertise and determination.”

Mr. Payne was presented with a plaque of recognition and a Weather Station console, in thanks for his many years of excellence with the ASA and the shipping industry at large.

“There is no doubt that the Australian shipping industry is all the better for having had the benefit of Lachlan’s steady hand and clear vision over the past few decades,” said Teresa Hatch, Director of Maritime Operations with the ASA, and host for the evening. “The industry and, ASA particularly, will farewell their champion – but they will not forget him; and the work Lachlan has pursued for so long and so vigorously...often in the face of insurmountable and heartbreaking challenges...will continue.

“There is heart and soul in our industry and Lachlan has taught us well that passion and enthusiasm are valuable commodities.”

Mr. Payne will be retiring from his role as Chief Executive on 2 July, 2008, leaving behind a legacy of excellence with a commitment to pioneering positive change and advancement of the shipping industry in Australia.

Media Contacts: Robyn Farrar - 0400 546 561

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The inquiry has been requested by the Hon Anthony Albanese MP, Minister for Infrastructure, Transport, Regional Development and Local Government, with the objective of rebuilding an internationally competitive coastal shipping industry to boost Australia's competitiveness.

The Chair of the Committee, Ms Catherine King, says the Committee will inquire into coastal shipping policy and regulation with the aim of enhancing the competitiveness and sustainability of Australia’s coastal shipping sector.

Ms King agrees with the Minister that the sector is of vital importance to the Australian economy. The Committees intends to explore issues such as the policy and regulatory arrangements in place for the coastal shipping sector; strategies for developing an adequate skilled maritime workforce and the effect of coastal shipping policy on the development of an efficient and productive freight transport system.

The full terms of reference for the inquiry may be obtained from the Committee Secretariat on the contact details listed below or via the website.

Submissions will be received until 11 April 2008 and can be e-mailed to itrdlg.reps@aph.gov.au or sent to the following address:

Infrastructure, Transport, Regional Development and Local Govt. Committee House of Representatives PO Box 6021 Parliament House Canberra ACT 2600

Further information and advice on making submissions, can be found at: http://www.aph.gov.au/house/committee/itrdlg/index.htm

For media comment:
Please contact the Committee Chair, Catherine King, on 0409 855 946.

For background information:
Please contact the Committee Secretariat on (02) 6277 2352
or by email at itrdlg.reps@aph.gov.au

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The meeting aims to further the IMO reviiew of Annex VI of MARPOL, addressing measures to reduce NOx and SOx emissions from ships.

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Mr. Neil Baird said the AUSMEPA Ship Membership Scheme had been introduced to award ships which can demonstrate a high level of safety and marine environment consciousness.

“To fly the AUSMEPA Flag is a sign of quality” he said.

To be approved by the AUSMEPA Board for Ship Membership a ship must be able to demonstrate a good safety and environmental record. AUSMEPA uses the following guidelines to determine ship quality and asses potential for AUSMEPA ship membership, any one will qualify a ship for consideration:

• Two continuous years free of detention under Australia’s port State control regime;
• A US Coast Guard QUALSHIP 21 Certificate;
• A Green Award Certificate;
• Any other internationally recognised certificate or record providing evidence of the ship’s quality and safety record, e.g. from a ship vetting company.

AUSMEPA Ships are entered in the database operated by Right Ship Pty. Ltd. which keeps track of AUSMEPA member ship’s PSC and other inspections throughout the world and their data base would also show up any significant incidents, should one occur, such as a grounding or collision. Such a monitoring scheme is essential to provide integrity to the AUSMEPA ship membership scheme.

Neil Baird said that in the event of such an incident the AUSMEPA Board would assess the circumstances of the incident and decide whether AUSMEPA ship member status should be withdrawn.

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ASA believes that the Senators have identified the key issues affecting maritime skills and apportioned responsibility for action in a way that will drive outcomes.

The challenges that the committee has set the industry to sort out are significant and work has already begun on many of them – we look forward to taking the findings of the report and building on the work currently underway for the training and retention of seafaring skills.

“The recommendation that section 23AG of the tax act be reviewed is one of those rare everyone’s a winner situations – school leavers, defence, employers, government, offshore industry, oil and gas sector, ports and marine pilots will all benefit. The bipartisan nature of the Senate committee should guarantee support for a simple amendment which will throw open the doors of opportunity to young Australians considering a seafaring career.” said Teresa Hatch, Director Maritime Operations

The Income Tax Assessment Act 1936 (the Act) treats Australian residents working overseas on ships differently from other Australian residents working overseas. So, while an Australian resident working in Hong Kong for more than three months is taxed at local Hong Kong tax rates, an Australian resident working for the same period of time on a ship overseas (of any nationality) is subject to Australian tax rates.

The reason is that Federal Court has held that the exemption from the Act for Australian residents “engaged in foreign service” applies only to those who work in a “foreign country”, and that “a foreign country” does not include those who work on the high seas.

The Australia Shipowners Association has long supported a minor amendment to the Act to overcome the difference in treatment between seafarers serving overseas and other Australians serving overseas. The amendment would mean that Australia seafarers – like other Australians working overseas for periods longer than three months – would be exempt from Australian income tax and, instead, would be subject to tax in the country from which their wages and salaries were sourced. Importantly, we are not looking for any concessional treatment for seafarers; we are simply asking that they be treated in the same way as other Australians serving overseas.

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The report covered three main topics: the implications of the legislative and regulatory environment on shipping; the implications of changes in the Australian international sea freight task over the period 2005-2020 covering the major cargo types; and increasing shipping’s share of the Australian domestic freight task which focuses on the current market, and opportunities government/industry may have to support the future viability of coastal shipping.

AMG is currently considering the report and will be making recommendations to the next Standing Committee on Transport (SCOT) to be held on 27 September 2007. Hopefully the report and AMG recommendations will encourage governments to recognise the important role shipping plays for Australia and look to policies to reinvigorate the industry.

Both a short summary and full report can be downloaded from the Australian Transport Councils website at:
http://www.atcouncil.gov.au/documents/shipping_ports_study.aspx

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There was a distinct lack of sessions or speakers covering shipping and related issues, which was disappointing. ASA raised this with BTRE prior to the Colloquium, where it was noted and agreed that the 2008 Colloquium will need to focus on shipping as an import transport mode along with the other areas of transport and logistics.

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However this only translates into a 3 percent growth in domestic coastal freight movement, with the majority of the growth coming from both the international export (23 percent growth) and import (27 percent growth) freight movements.

This further highlights the Governments lack of commitment to build on the efficiencies of shipping as a viable alternative over road transport for long haul movement of freight.

For a copy of the report please contact ASA or the report is also available from the BTRE website at: www.btre.gov.au/statistics/statsindex.aspx

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"Shipping is not sexy" was the reply. This was not news to anyone – it has long been thought that there are no votes in shipping. But why?

The electorate might be excused for thinking that the carriage of 28% of the nation’s long distance transport task by sea transport where infrastructure cost is zero is quite a sexy and efficient idea.

The Australian Government's $15 billion commitment to land transport reform in the first five years of AusLink has already made a major difference to our road and rail systems says the Minister for Local Government, Territories and Roads, Jim Lloyd.

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The 34,960 dwt Brussel was seen trailing a 7 km oil slick about 48 km south west of Malacoota in Victoria.

AMSA chief executive Clive Davidson praised the master and crew of the Australian vessel Goliath , who helped identify the Brussel as the cause of the slick.

Only an illegal discharge of oil can be seen on the sea surface, AMSA said.

Witnesses in this case observed a very dark substance with a shiny colourful sheen indicating that the discharge contained a substantial amount of oil.

“It is highly encouraging to our organisation to know that we are ably assisted in our environmental protection role by responsible seafarers monitoring the illegal activity of those not concerned for the protection of our pristine Australian seas,” Mr Davidson said.

“A fine of $30,000 against the owners and $3,000 for both the master of the MV Brussel and the same for the junior engineer should send a sound message that those polluting our environment will be caught and will be dealt with to the full extent of the law.”

An AMSA spokeswoman named the owner as Puteza Maritima of Panama.

In Malaysia, Barber Ship Management general manager Stein Eriksen confirmed his company managed the Panama-flag Brussel but would not comment on which company controlled Puteza Maritima.

He said the incident occurred in 2003.

From LLDCN, 28 February 2007

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The workshop will present an opportunity for the ASA to provide details of member issues in relation to imports, bunkers, duty payment, drawbacks, fuel tax credits and the management of the GST aspects of these matters. The workshop is designed to identify those matters that are causing concerns either from a policy or an operational perspective, and to assist in the development by agencies of communication products to assist industry with these issues. It is intended that there will be wide representation at the workshop from agencies across the Excise, GST and Customs areas.

Further information on the workshop will be provided early in the new year. At that time members will be canvassed to articulate their views on fuel excise issues which they consider need to further addressed by government, from either a policy or administrative perspective, or on which further clarification from agencies would be useful.

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ASA already has a long association with TDT Australia through the development of industry training packages and is currently a member of TDT’s maritime training steering committee. In comments made earlier today, Evan Westgarth, ASA’s Employee Relations Officer said that ASA were looking forward to making strong contributions to the work of TDT Australia, particularly in areas such as attraction, recruitment, skill development and retention.

The position on TDT’s Board will be occupied by Lachlan Payne, ASA’s Chief Executive while Evan Westgarth has been appointed as an Alternate. ASA’s appointment is for a three year term after which they remain eligible for re-election.

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Willis Island is deemed an international destination and should be able to be used by Australian ships to satisfy the requirements of their operating permits. The cruise shipping industry, reportedly worth $228 million compares favourably with the Australian shipping industry, worth $233.3 million.

ASA is investigating the application of Willis Island’s status for the cruise ship industry to the mainstream Australian commercial shipping industry. The approach adopted by the Australian government to the status of Willis Island demonstrates a sensible, pragmatic and practical approach to an industry’s operations.

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Each Course was attended by about 30 people representing companies such as BP Shipping, ASP Ship Management, Teekay, Shell, ALSOC, Wallenuis Wilhelmsen Logistics and Barber Ship Management.

Angela Gillham, ASA's Maritime Environment Manager said, "While as an industry we are generally good environmental performers, there seems to be a genuine understanding that there is a great deal of room for improvement.

"There is a genuine concern and enthusiasm for environmental protection within the industry that came out in the interactive program, and we hope to run these courses on a regular basis."

The Marine Environment Awareness Courses aim to provide those working in the industry with background on why some of the environmental regulations are in place. The courses also provide a forum to discuss the root causes of non-compliance, how this can impact on the environment and company reputation, and strategies to address these issues.

Attendance at the Marine Enviroment Awareness Course was free due to the kind support provided by AMSA, the Natural Heritage Trust and Wallenius Wilhelmsen Logistics.

For information on future courses please contact Angela Gillham at ASA on email: angela.gillham@asa.com.au or phone: +61 3 9646 0755.

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The review will mark the first time the Convention has faced a review since it was radically amended in 1995. As reported in an ICS/ISF newsletter, IMO will determine the scope of the review during 2007.

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In July a dispute erupted over the withdrawal of Stolt Australia from the Australian fleet. The industrial response was a throwback to the “Aussie ships for Aussie cargoes” mantra of the 1980’s, but the underlying causes are better known now than they were then.

That dispute has been picked up by various media outlets and apparently has a story left in it. It was the SBS Insight program that first looked at the administration of the permit system in depth and now the ABC current affairs department is all over the subject.

In August, the Minister for Transport and Regional Services made what some observers regard as a breakthrough comment when he noted that the expansion of Australia’s domestic freight task in the future will be largely carried by sea and rail.

These are the two most economically and environmentally sustainable transport modes. Sea transport has no infrastructure cost associated with it as the ports over-recover from the shipping and shipper communities the cost of providing port facilities.

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Greece, France, Italy, Finland and Portugal will now face legal action at the European Court of Justice following alleged insufficient implementation of the obligation to develop, approve and implement waste reception and handling plans relating to all national ports, including fishing ports and marinas.

“These plans are a key element in ensuring that port reception facilities made available meet the needs of the ships normally using the ports that their operation does not cause undue delay to ships and that fair, transparent and non-discriminatory fees are applied,” the Commission said in a statement, adding that member states should have set up waste reception and handling plans for all their ports by 27 December 2002.”

The EC has sent reasoned opinions on the issue to Germany, Estonia and Spain, but these states will not face legal action.

Fairplay Daily News 7/07/2006

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On 16 May 2006, the two unions appealed to the Full Bench of the AIRC against two decisions relating to applications to make Awards for the regulation of employment conditions on foreign ‘permit ships’ operating on the Australian coast.

With the advent of the WorkChoices legislation which came into force on 27 March 2006, the Full Bench considered the application of several new regulations and the impact each would have on any determination the Full Bench made.

On 22 May 2006, the AIRC released its decision which outlined the rejection of the Unions appeal, citing two specific WorkChoices regulations as the reasons why such a decision had been reached.

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Speakers covered a range of topics from the policy and operational aspects of various modes potentially involving marine pests, such as shipping and fishing through to the science and research into the spread of pests and monitoring activities.

The forum was well attended by business and community participants.

Teresa Hatch, Director Maritime Operations for Australian Shipowners Association heralded the forum as a success saying that "This initiative is most welcome and we are pleased to be able to present and contribute. Other States should take note of what South Australia has done at this forum of a great example of how to start 'doing' rather than just 'talking'."

The forum provided ASA with the opportunity to provide detailed advice regarding the work and contribution of the ship owning community to combat the issues associated with ballast water, antifouling paints and biofouling of commercial vessels.

One of the key topics of discussion, that is of significant interest to SA was that of Caulerpa taxifolia - a marine pest that has already had a significant impact on SA. It is believed that the introduction of this pest was from an aquarium.

The forum was finished with a tour of the South Australian Aquatic Sciences Centre.

Further information, Teresa Hatch (03) 9646 0755

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ASA's Canberra director, Trevor Griffett, described the new guidelines as "an incredible missed opportunity".

"There were a series of amendments agreed to by shipowners and shippers in November last year that have not featured in this update," Mr Griffett said. "Furthermore, there were discussions among a range of parties in April, none of which have featured in the update."

He said he was surprised that the Department of Transport and Regional Services had cited the procedure for withdrawing continuous voyage permits as an essential feature of the new guidelines.

He was not aware of any CVPs being cancelled in the past five to 10 years. Mr Griffett said the main change as it is referred to in the cover letter (from Michael Sutton, DoTaRS General Manager, Maritime) concerned permit vessels having to comply with SOLAS, Marpol and Port State Control legislation.

"This," he said, "was odd, given that this was already the case."

"We asked for clarity, transparency and reviewability and none of these issues have been addressed," Mr Griffett said.

The new ministerial guidelines were released to stakeholders yesterday by Mr Sutton.

In his cover letter, Mr Sutton indicated the main change to the guidelines involves replacing the old paragraph 48, concerning Australian Maritime Safety Authority detentions, with a new paragraph 44 (under the heading Safety and environmental considerations), which states:

"It will not be in the public interest to allow vessels with poor safety or environmental protection standards to carry coastal cargo under permit. Permits will therefore be issued on condition that the ships named in the permit comply with the standards of safety and marine environment issued with permits will be liable for inspection by the Australian Maritime protection of international conventions to which Australia is a party. Ships Safety Authority under its Port State Control program."

Mr Sutton said the amendments would make the administration of the coasting trade process more effective while still ensuring that the safety of crews and vessels and the Australian marine environment are not compromised or lessened.

The new guidelines also incorporate a few minor changes of an administrative nature.

Further information on the permit system may be obtained from ASA on (03) 9646 0755.

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Captain Michael Alexander, AUSMEPA’s Chairman, today presented AUSMEPA certificates and AUSMEPA flags to Captain Conrad Saldanha, Manager Ship Operations, Origin Energy Contracting Ltd. of Sydney for the M.V. Boral Gas and M.V. Pacific Gas, the first two ships to be approved and accepted into the AUSMEPA Ship Membership Scheme. The presentation ceremony took place at the Sydney offices of Clayton Utz, one of the more recent companies to become AUSMEPA sponsors.

Captain Alexander said the AUSMEPA Ship Membership Scheme had been introduced to award ships which can demonstrate a high level of safety and marine environment consciousness.

“To fly the AUSMEPA Flag is a sign of quality” he said

To be approved by the AUSMEPA Board for Ship Membership a ship must be able to demonstrate a good safety and environmental record. AUSMEPA uses the following guidelines to determine ship quality and asses potential for AUSMEPA ship membership, any one will qualify a ship for consideration:

• Two continuous years free of detention under Australia’s port State control regime; • A US Coast Guard QUALSHIP 21 Certificate; • A Green Award Certificate • Any other internationally recognised certificate or record providing evidence of the ship’s quality and safety record, e.g. from a ship vetting company.

Captain Alexander expressed his appreciation to Captain Warwick Norman, Chief Executive, Right Ship Pty. Ltd. who had agreed to provide an AUSMEPA fleet data base of ship members, which would keep track of AUSMEPA member ships PSC and other inspections throughout the world and would also show up any significant incidents such as a grounding or collision. Such a monitoring scheme is necessary to provide integrity to the AUSMEPA ship membership scheme.

Captain Alexander said that in the event of such an incident the AUSMEPA Board would assess the circumstances of the incident and decide whether AUSMEPA ship member status should be withdrawn.

Captain Alexander invited other ship owners whose ships can demonstrate a good safety and environmental record to join with AUSMEPA in its quest for cleaner seas and apply for AUSMEPA ship membership.

AUSMEPA has recently introduced a number of educational programs to partner with industry and the community to help protect the marine environment.

Welcome to Australia DVD

In partnership with the Australian Maritime Safety Authority (AMSA) AUSMEPA recently produced an educational DVD titled ‘Welcome to Australia – Protecting the Marine Environment’. The DVD is placed on ships calling at an Australian port and can be viewed in five languages; Spanish, Chinese, English, Greek and Filipino. The DVD provides information on Australia’s unique ocean environments, highlights the need for continued protection of the ocean from ship sourced pollution, and discusses penalties for breaching the strict Australian marine pollution laws.

Safety and Environment Bulletin

AUSMEPA plans to introduce a shipping safety and environmental information bulletin that will be issued quarterly and available to all member ships. The bulletin will include information and lessons learnt from AMSA’s Port State Control ship inspection program, The Australian Transport Safety Bureau marine casualty investigations and current issues related to the protection of the marine environment.

AUSMEPA Newsletter

Members of AUSMEPA will also receive a quarterly newsletter containing information, updates from the industry at a national and international level and interesting interviews with industry participants.

Interactive Web Based Educational Programs

AUSMEPA also develops lesson plans and interactive web based educational programs for schools and the community. The web based “Marine Pests and Threats” program covers the issues of ballast water, hull fouling and marine debris. See www.ausmepa.org.au

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We have the Department of Transport talking to stakeholders about an agreed position on how the permit guidelines should apply. We have Shipping Australia saying that the interests of licensed ships and permit ships need to be protected. We have the editor of Lloyds List DCN suggesting that liner agents will be dusting off their copies of Australia’s cabotage rules.

You have to wonder how many experts on this subject know what the “cabotage rules” consist of, let alone where to find them. The thing is that the “cabotage rules” sustain the protection granted to foreign ships operating in Australia in what must currently be the most flagrantly imbalanced market regulation in this country.

The answer is not to put another “agreed position” band-aid on the problem. The answer is to make regulatory adjustments, fix the problem and allow Australian operators to behave like global operators - that is, like the permit ships they are required to compete against.

We never imagined the cabotage debate would turn into a populist bandwagon but Pan Shipping has turned it into one and now everyone’s jumping on board. That suits Australian shipowners very well.

This is the best bout of free public awareness ever on the subject.

Most of all it’s gratifying to learn that the representatives of the foreign ships that enjoy a stupendous competitive advantage conferred on them by Australian law and who stand to lose cargo to Australian coastal ships are concerned that the interests of licensed ships be protected.

Don’t forget the Easter bunny is due next week.

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In October 2005, the ASA secretariat formally approached the Australian Maritime Safety Authority (AMSA) to highlight its concerns and outline areas in which they believed the system could be improved.

To the delight of the secretariat, AMSA responded by announcing a full review of MO9 and invited stakeholders to make submissions.

The ASA secretariats submission focused on the need to provide a system that focused on ‘quality assurance’ and maintained appropriate standards. The submission also highlighted the effectiveness of the medical fitness system that was implemented by the Civil Aviation Safety Authority (CASA) to regulate flight crews.

CASA effectively implemented a system that uses modern technology to ensure its medical standards are strictly maintained. Interestingly, the Victorian Transport Association (VTA) has also recognised CASA’s regime as one that provides for the effective maintenance of fitness standards.

In reference to the medical guidelines that regulate the assessment of truck drivers, an article that appeared in the VTA’s Priority Report stated ‘it appears the current (medical) guidelines are inadequate…for assessing dangerous goods drivers. Authorities need to adopt a more comprehensive approach…similar to that used by CASA’.

Following a recent meeting of ASA’s Human Resources Committee, the ASA secretariat contacted the Australian Maritime Safety Authority in an attempt to ascertain what progress has been made on the review of MO9.

AMSA representatives advised that they are utilising the services of a current Medical Inspector of Seaman to review the assessment guidelines and are considering involving Health Services Australia, an organisation whose business principally focuses on occupational health and medical assessments, within a revised regime.

Meanwhile, the ASA secretariat look forward to playing an active role as the review progresses.

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Mr Irving was a Director of Caltex Australia Limited for twelve years including six years as Chairman; he continues to be a Consultant to Caltex Australia Limited. Current Directorships include Keycorp Limited (Chairman); Abacus Property Group and Government owned Australian Industry Development Corporation and Australian River Company Limited (formerly Australian National Lines).

Mr Irving succeeds Jim Starkey as Chairman of the NPMC. Mr Starkey has served as Chairman of the Committee for six years and has successfully overseen the formative years of the National Plan. At the farewell lunch hosted by AMSA for Mr Starkey yesterday in Canberra, Jim described the current period as "relative calm" following some of the more challenging times during the Plan development.

The Australian Shipowners Associations sincerely thanks Mr Starkey for his valuable contribution over the years and warmly welcomes Mr Irving to the role.

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The draft text places some degree of responsibility on ship owners to document hazardous substances on board and signatories to operate ship recycling facilities that observe certain environmental and safety standards.

Work will continue at future IMO meetings.

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All Commissioners hail from different professional backgrounds, which should ensure balanced outcomes in terms of the AFPC’s primary function: setting and adjusting the AFPC Standard, the nation’s new minimum employment entitlements.

Mr. Hugh Armstrong has had a 28 year involvement with trade unions including the Australian Government Workers Union, Federated Clerks Union, Australian Services Union and is a past President of the Industrial Relations Society of Victoria.

Mr. Patrick McClure is the current CEO of Mission Australia, one of the largest community organisations in Australia and in 2003 was made an Officer of the Order of Australia for his contribution to social welfare.

Mr. Michael O’Hagen has over 20 Years experience as Managing Director of a large furniture removal company and is currently a member of the Advisory Panel to the Governor of the Reserve Bank of Australia.

Professor Judith Sloan holds extensive tertiary qualifications in Economics and has held several senior positions including: Director of the National Institute of Labour Studies at Flinders University; part time Commissioner of the Productivity Commission; Director of an Oil and Gas exploration and production company.

The announcements were made following the appointment of Jennifer Taylor to the position of Director of the AFPC secretariat. Ms Taylor’s background extends to areas such as youth affairs and employment, education and training, with previous roles including that of Group Manager within DEWR.

In related news, DEWR has extended the Award Review Taskforce’s end of March deadline for providing recommendations to the Australian Industrial Relations Commission on the process to be undertaken to rationalise Awards.

In a media release, Kevin Andrews said that the extension reflects ‘considerable interest’ among stakeholders in the work of the Taskforce and as such has extended the deadline until the end of April.

High Court Challenge

The ACT has joined the collection of Labour states in taking part in High Court proceedings to challenge the new legislation. The collective challenges will commence on 4 May 2006 and will be heard over a period of six days.

Also, NSW has followed Victoria’s lead and passed Bills that are aimed at shielding various public sector employees form the new workplace relations laws.

For more information on WorkChoices or the AFPC, please contact Evan Westgarth at evan.westgarth@asa.com.au or call (03) 9646-0755.

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The new Convention updates and replaces more than 60 existing ILO instruments and received tripartite agreement from shipowners, governments and unions.

The Convention is largely being heralded as the fourth pillar of maritime regulation, alongside SOLAS, MARPOL and STCW.

When the Convention enters into force ships will be required to carry a Maritime Labour Certificate and Declaration of Maritime Labour Compliance.

Teresa Hatch, Director Maritime Operations, ASA and Australian Shipowners delegate to the conference reflected on the monumental effort necessary to achieve this outcome: "Discussions have been ongoing for five years, and the breadth of coverage of this convention is quite astonishing. The participation of the Australian Government at this conference has been very positive and the support of the government for this convention allows the shipowning community some security that the necessary certificates and inspections will become part of Australia's role in maritime administration."

ASA will hold a meeting for Members to discuss the impact of the new convention in detail on a date to be advised.

Further information: Teresa Hatch, 03 9646 0755 or 0419 483 500

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The regulations and the explanatory memoranda that accompany them total nearly 500 pages, and provide for the first time the opportunity for the Governments workplace relations package to be examined in its entirety.

The regulations fill the gaps in many areas, including;

• The award rationalisation process and the ongoing role of awards

• What is defined as prohibited content

• Processes surrounding industrial action

• Minimum entitlements

• Penalties associated with non compliance

• Australian fair pay and classification scales

The new system is to come into effect upon proclamation on the 27 March 2006. For more information please contact the ASA secretariat on (03) 9646-0755.

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The 'defence significance' of Australia's shipping capacity is an area that is often focussed on in policy discussions. Navy and industry representatives have 'rolled their sleeves up' over recent years to progress a range of initiatives.

At the AMDC meeting last week, consideration was made of the sealift support for Australian Defence Force operations, improving the insurance and indemnity impasses that currently exists when commercial operators seek to help navy and defence improve their response preparedness through live drills, and civilian recognition of Navy training.

These activities will go a long way to improving the nexus between traditional bluewater commercial shipping and their naval counterparts.

The AMDC meets twice a year with discussions and negotiations continuing throughout the year. ASA and its members were founding members of the AMDC when it was formed in the wake of the Vietnam conflict which relied heavily on commercial shipping assets and seafarers.

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The main purpose of the JMC meeting on this occasion was for a sub-committee of the JMC to negotiate the up-dating of the ILO Minimum Wage.

The ILO minimum wage is intended to be a safety net for international seafarers and is meant to maintain the purchasing power of a negotiated value of US dollars in a large group of countries which are major shipping nations and major labour-supply nations. The minimum wage is based on remuneration for an AB and is negotiated every two years.

The Chief Executive of ASA, Lachlan Payne was the spokesperson for the international employers in the wage negotiation with representatives of international unions..

Often in the past, negotiated increases have been in excess of the result that the formula would produce. On this occasion, the starting point was US$ 500 (per month). The formula would have given an increase to $ 545.

In the event, the outcome was an increase to $ 515 from 1st January, 2007, a further increase to $ 530 from 1st January, 2008 and a further increase to $ 545 from 31st December 2008.

The outcome of this JMC negotiation was also the first substantive consequence of the Maritime Labour Convention 2006 which had only been adopted the day before the JMC wage negotiations were concluded.

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While acknowledging that "the NTC does not have a role in every aspect of long term planning for freight transport" ASA Canberra Director, Trevor Griffett says that "it is remarkable that such a comprehensive review of environmental, safety, infrastructure and cost implications for freight transport has overlooked sea transport altogether".

"Even now, the focus of Canberra is on road and rail - however the relative efficiencies and economic cost savings to those modes compared to sea transport are all too often overlooked. Ships don't require additional roads or rail to inject capacity and at the port interchange, ships are a far more economic investment in infrastructure being fully underwritten through port fees."

The lessons learned from Europe and USA again seem to be overlooked, where there has been a marked increase in short sea voyages for cargo as an environmentally and cost efficient alternative to providing additional road or rail capacity.

"This is particularly disappointing, as ASA raised these issues with the NTC prior to it finalising their report - evidence was provided of the overseas experience," says Griffett.

"Until the concept of 'corridor solutions' is truly embraced, where the most effective mode between two points receives funding, Australia will never receive the optimal transport outcomes it deserves."

"Road and rail are critical components of an intermodal freight transport system," continues Griffett. "What many Canberra economists seem to overlook however, is the equally critical role of coastal shipping in the transport task".

The NTC Report "Twice the Task" is available from the NTC website at http://www.ntc.gov.au/ . Further information on the efficiencies of sea transport can be obtained from ASA on (03) 9646 0755.

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Employer representatives on the Seafarers Safety & Rehabilitation & Compensation Authority (Seacare Authority) have been pressing for a reduction to the Seacare safety Net Fund Levy since its introduction in April 2002.

Unlike many other workers' compensation schemes, the Seacare scheme has a separate 'safety net' to provide compensation to injured seafarers in circumstances where their employer has ceased to exist or gone bankrupt. Until April 2002, this role had been overseen directly by bluewater and offshore employers, managed by the Australian Maritime Industry and Compensation Agency Ltd (AMICA). The effects of the HIH Insurance collapse, combined with an insurance market contraction post September 11 left AMICA unable to obtain the necessary insurance to continue this function.

At this time, the Safety Net Fund, as it is known, passed to Federal Government control. To fund this safety net, the Safety Net Fund Levy was introduced, at a rate of $53 per berth per quarter. Increasingly conservative actuarial assessments on the required prudential fund to be maintained now mean that over $800,000 has been accumulated in the 4 years since the Levy's introduction, over and above administrative expenses.

"In a time when employers insurance costs have been spiralling" says Canberra Director, Trevor Griffett, "employers have also had to bear the additional impost of the Seacare Levy. In understanding employers' frustration, the Government and the Seacare Authority need to understand that the Levy has cost employers nearly $200,000 a year more than AMICA ever did".

"To see a reduction of about 30% in the Levy is a welcome development, and one that has been hard-fought with the Minister's office".

The newly-reduced levy will apply from 1 April 2006 (the next Levy calculation period).

Further information on the reduced levy may be obtained from Teresa Hatch on (03) 9646 0755.

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Several media reports claim that the company is trying to negotiate an agreement that cuts pay for existing workers by 5%, new workers by 20% and radically reduces entitlements such as rostered days off and long service leave.

Not surprisingly the ACTU and Australian Manufacturers Workers Union (AMWU) are staunchly opposing the proposed new deal, with the AMWU indicating that they are considering industrial action.

The company responded by saying that the proposed new agreements would ensure the company remains competitive and would help secure manufacturing jobs for the future.

In related news, the ACTU has slammed management and human resource advisors who claim they can use the workplace changes to reduce conditions of employment and take away family friendly entitlements.

In an article posted on the ACTU website, ACTU president Sharron Burrow described people who make such claims as ‘vultures’, who are ‘preying on the living standards of Australia’s workforce.’

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Peter Hinchliffe, from the International Chamber of Shipping, explained: “The shipping industry is committed to a zero-tolerance approach to any non-compliance with the IMO MARPOL Convention. The purpose of our leaflet is to highlight some of the issues surrounding the proper use of oily water separators, and to remind company management and shipboard personnel how they can act to prevent MARPOL infringements.”

The guidance advises that every effort must be made to ensure that no-one engages in any illegal conduct in the mistaken belief that it will benefit their employer.

“Every seafarer must be made fully aware of the severe legal consequences, both for the company and the seafarers themselves, of even minor non-compliance with environmental rules” said Peter Hinchliffe. “But it is ship operators who have ultimate responsibility for establishing a compliance culture within their companies.”

The new industry guidance emphasises the need for everyone to understand that even the most minor violations of MARPOL will, quite rightly, be detected by the authorities. In addition to large fines – equivalent to literally millions of dollars – both company management and seafarers can be liable to criminal prosecution and imprisonment for any deliberate violation of MARPOL or falsification of records.

The industry bodies behind the new leaflet recommend that the guidance is carefully analysed by shipping company management as a check on their compliance process.

An electronic version of the industry leaflet, which is being distributed globally by international and national shipowners’ organisations, is available at www.marisec.org/ows

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Figures obtained from AMICA show that claims made under the Seafarers’ Act have dropped 8% from the corresponding time last year. This is despite there being a 16% rise in the number of claims that have actually been accepted under the Act.

ASA’s Evan Westgarth, believes the results are positive and hopes the trend will continue. “It is pleasing to see that compensation claims overall are reducing, which suggests that the number of incidents that give rise to claims are also reducing.” Mr Westgarth said following the reports release.

The figures also suggest that employer’s are improving their processes for managing claims, with the report showing that determinations are being made in a much more timely fashion when compared to this time last year.

Apart from 2003/2004 which seems to have been an anomaly year, there has been a steady decline in the number of compensation claims made during the last five years.

To further improve the industry’s performance in relation to workers compensation, AMICA are proceeding with plans to re-model the processes for reporting claims. Essentially, they are developing a system that will utilise the advantages of modern technology. By putting the system online and making it user friendly, AMICA hopes to relieve some of the administrative burden associated with workers compensation reporting.

“We are looking to develop a system that will assist all those involved in the reporting process, which should in turn assist employers and AMICA in providing data of the highest quality." Mr Westgarth said.

AMICA are looking to have the new online reporting system in operation by the beginning of the 2006/2007 financial year.

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The Independent Review was undertaken by two former Ministers for Transport: the Hon John Sharp, Minister in the Howard Government and the Hon Peter Morris, Minister in the Hawke Government.

A more authoritative and better balanced appraisal of issues confronting the Australian shipping industry had not been produced for many, many years prior to this Review, and there has certainly been none since.

A key proposal to emerge from the Review was that “a business environment in which regulatory policies and the administration of legislation is certain and stable over time is essential to sound investment decision-making.”

The review found that the environment was not certain and stable but subject to change and uncertainty.

There are signs that that situation is improving. The conditions subject to which permits are made available for foreign ships to operate in Australia have tightened in some respects whilst still being readily available to those cargo interests that need them.

But the conundrum of the competitive disadvantage suffered by Australian ship operators in Australia compared to foreign ship operators in Australia remains. Solving this conundrum poses this question: is the answer to make Australian ships cheaper to operate or foreign ships more expensive to operate in Australia? Or something in between?

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ASA’s Employee Relations Officer, Evan Westgarth, is looking forward to seeing what impact the measures have on overall safety and whether the move will be seen as a success.

“Considering AMSA is in the process of conducting a review of the regulatory medical regime here in Australia, it is interesting to see how issues such as drug use are being handled internationally. Certainly there is merit in looking at what safety measures are being implemented around the globe and seeing if such measures will be worthwhile here in Australia”. Mr. Westgarth said recently.

In related news, an American P&I club has recognised the importance if pre-employment medicals, making them mandatory for all Filipino and Ukraine seafarers’. Under the new rules, deductibles will be doubled for any claim that is made on the club where the seafarer was signed on during the previous six months without undertaking a medical.

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This conference, attended by over 700 international delegates in 2005, comes with Dubai's signalled intention to raise its profile in international shipping and port operation.

The conference is convened under the patronage of HH Sheik Ahmed Bin Saeed Al Maktoum.

Trevor will speak on the ship operator view of maritime security priorities, now that the ISPS Code has effectively been implemented. Having been involved in the development of Australia's maritime security regime since 2002, conference organisers have been keen to glean any available lessons from Australia's experience.

In meeting travel and accomodation expenses, the organisers have also demonstrated the relevance of Australia's experience in these international developments.

The APTS Secure frontiers conference is scheuled for 3-4 April 2006 at the Grand Hyatt, Dubai, UAE. Further details on the conference can be found at http://www.apts-expo.com/ME/page.cfm/Link=1/t=m/goSection=1

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At the end of November 2005, there were 37 foreign ships allowed to operate in Australia’s interstate transport industry for three months at a time. Of the 37 ships, 27 were container ships and 4 were general cargo ships.

There were two LPG tankers, two self-discharging bulk carriers , one car carrier and one cruise ship able to operate in Australia’s interstate transport industry. All foreign and with foreign crews.

Since 2002, when ASA started keeping records, there have been at least 82 foreign ships that have operated in Australia on a continuing basis. The greatest number of them are owned in Germany, reflecting the success that country is having in encouraging investment in shipping – and reflecting the negative impact on Australia’s current account deficit by Australians having to pay German ship owners to carry goods in Australia’s interstate transport industry.

Meanwhile, the number of Australian ships in Australia’s interstate transport industry remains at around 45. Quite aside from the foreign ships operating with special permits, more than 20% of ships operating with a licence to engage in Australia’s coasting trade are now foreign registered.

No-one would mind the encouragement of foreign ships operating in Australia without being subject to Australian law if it weren’t for the fact that they are allowed to operate at a competitive advantage over Australian ships that are subject to Australian law.

Does anyone care?

If you care, email us at admin@asa.com.au and say ‘I care’.

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TDT Australia will use the committee’s as a sounding board, with the vision of tapping into valuable industry intelligence and gaining strategic direction to assist TDT in moving forward.

ASA are pleased to report that they have accepted an invitation to occupy a position on the Maritime and Stevedoring Committee, with the first meeting due to be held on February 8 in Sydney. The initial meeting will cover several issues associated with training including training package development, career development and vocational funding options.

For further information please contact Evan Westgarth on (03) 9646-0755 or evan.westgarth@asa.com.au.

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Do the town’s elders encourage locals to set up businesses servicing the transport industry that is passing through their town and provide income, infrastructure, jobs, technical skills, tourism and improved communications links for their town? Maybe they could base a transport logistics operator in the town to generate even more jobs and skills.

Or do they elect to do nothing and let all that prosperity benefit the next town?

International shipping links to Australia are like that: Australia has elected to do nothing and to allow everyone to benefit from Australia’s shipping task except Australia.

Australia has lost many of the benefits that used to attach to the passing trade of shipping. No large ship building capacity, no major ship repair capacity, no large shipping companies. A diminishing maritime skills base with not enough incentive to train people to supply maritime skills for the future. Not many ships to help Australia’s defence forces in a security emergency.

ASA members are working hard to turn all that around, but Australia, like that country town, needs leadership with the vision to create an environment where there are reasons to be in shipping in Australia.

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This is quite a coup for Werts, and recognition of the effective manner in which the Operations Centre has established itself in the Australian shipping industry over the past 2 years.

"Clearly the Office of Transport Security is in a state of transition at the moment," says ASA Canberra Director, Trevor Griffett, "as we are seeing changes in a variety of senior positions. In many resects, this is unfortunate, as the early appointments at OTS could be seen as the cream of the crop. After successfully developing and implementing Australia's maritime security regime, these people are now moving on."

Kassandra Peacock has been appointed as Deputy Manager while the Department seeks a replacement for Michael Werts. "Kassandra has been handling the sensitive area of permit applications for the past 12 months and that should see her more than ably prepared for anything the Operations Centre can throw at her" says Griffett.

For more information contact Trevor Griffett in ASA's Canberra office on (02) 6243 4812.

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The large number of ILO Maritime Conventions are being consolidated into one convention that will be clearer, more modern and easier to keep up to date in the future.

The ILO sessions are tripartite – shipowners, unions and governments are separately represented and vote independently on instruments that are under consideration. Teresa Hatch of the ASA secretariat will attend as the shipowner member of Australia’s delegation to the ILO maritime session. The Australian government will have representatives on the delegation as will the Australian maritime unions.

Attendance by the Australian delegation at the ILO session is funded by the Australian government.

A meeting of the ILO Joint Maritime Commission will be held during the third week of the Geneva conference. Lachlan Payne of the ASA secretariat is the Australian member of the ILO Joint Maritime Commission.

The main purpose of the Joint Maritime Commission meeting will be to review the ILO minimum wage for seafarers. Lachlan Payne has been asked by the International Shipping Federation to lead discussions for the international shipowners on the minimum wage negotiation at the meeting in Geneva next month.

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Canada allows non-Canadian flag shipping to carry domestic cargoes only where no suitable Canadian-flag tonnage is available. Canadian authorities recently denied a shipper access to foreign-flag tonnage with the result that the salt cargo in question was apparently reserved for Canadian-flag operators on the grounds that the shipper concerned had to prove that the vessel capacity offered by Canadian vessel operators that have previously always met the shipper’s transportation needs are now insufficient.

It appears that in the case of the cargoes concerned that burden of proof was not satisfied.

There are two ironies in this story. The first is that in Canada, a nation with which Australia likes to draw many similarities, the burden of proof is apparently on the applicant for a permit to show that the national-flag tonnage does not meet its transportation needs. In Australia, no such formality is observed.

The second irony is that one of the aggrieved Canadian-flag ship operators was Canada Steamship Lines whose foreign-flag self-discharging bulk carriers are allowed by Australian authorities to operate on the Australian coast for months and years at a time under Australian voyage permits.

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The process of attracting, employing and retaining candidates of the highest calibre is undoubtedly a great strategic challenge. Not only can the right people effectively contribute to an organisations success, but by having them in your ranks instead of your competitors provides an edge in itself.

The Australian Logistics Council have recognised the importance of promoting every part of the supply chain, which of course includes a vital player; shipping. As part of a strategic campaign focusing on information transfer and shaping the profile of the industry, the ALC has committed to the National Careers & Employment Expo’s, which are held in every state and territory (with the exception of the Northern Territory) and are the largest of their kind. Last year over 54,000 people attended Melbourne and Sydney alone!

ASA are pleased to report they are among the first to join the ALC for the 2006 campaign. ASA believes that the shipping industry needs to take a strategic approach towards recruitment that focuses on information transfer, which the expos will provide.

“Through the expo’s, we plan to provide information so that potential candidates can make informed career choices, giving employer’s the chance to recruit people who have developed a keen interest in shipping through greater knowledge and understanding” ASA’s Evan Westgarth said following the announcement.

For more information on the National Careers and Employment Expo’s 2006 please contact Evan Westgarth on (03)9646-0755 or evan.westgarth@asa.com.au.

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Ladyman is pushing the programme as a way of selling the sector as a lifestyle and believes a degree course would offer a useful qualification on which a future career could be built. Referring to the £37Bn ($65Bn)-plus turnover in the UK’s wider maritime industry, the minister commented: “if we don’t produce people this will disappear,” and insisted that the sector needs people who have been to sea to meet the recruitment needs of the land-based maritime sector.

The degree framework has been developed by the Merchant Navy Training Board in consultation with trade union Numast, Maritime and Coastguard Agency, employers, colleges and training institutes, and is supported by Foundation Degree Forward. It is to be seen as another way in to becoming a ship’s officer and will cover the skills laid out in the recognised Seafarers’ Training, Certification and Watchkeeping (STCW) Code.

Applicants for the degree would be of A-level or Scottish equivalent standard and students would need to seek sponsorship from a shipping company. According to Allan Graveson, senior national secretary for Numast, “A key feature [of the foundation degree] is the opportunity for the employer to have considerable input into the product.”

courtesy Lloyd's Register - Fairplay web links

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Since then ASA has participated in the working group that has considered the nature, implementation and practicalities of a foreign seafarer visa that incorporates a background check. Foreign seafarer visas have been granted for many years, however they have been ‘deemed’ by the Dept of Immigration and Multicultural and Indigenous Affairs (DIMIA). It is these 3-month deemed visas that have applied to the crews of CVP vessels, for example.

Seafarers have been one of the only exceptions to background checking as compared to other foreign nationals entering into Australia as workers or tourists. DIMIA saw this as anathema to their border control provisions. However, in the regular and ongoing consultations on the new visa criteria, ASA has been able to influence the discussion on matters such as the fee for the visa – whilst it is not yet certain, it appears likely that there will be no fee to the seafarer for applying for this visa. This overcame considerable (practical) administrative obstacles relating to payment.

What is known at present is:

• The visa will be electronic in nature – rather than having a stamp or sticker in a passport, the applicant’s passport number will be linked (electronically) to the number of a valid visa

• The application/background-checking system will be internet based

• The system will be very similar to the tourist visa application process

• Agents will be able to apply for visas on behalf of individuals (eg Ship’s Master, manning agent, ship manager, shipping agents etc)

• The system will be risk based – applicants who trigger certain risk profiles will be required to provide greater detail in the application process

• Foreign seafarers who do not have the requisite visa will not be permitted to leave a ship when in Australian ports

• It is anticipated that the visa will be valid for a period of about 2 years. However, the same 3 month departure requirements will continue. That is, while the visa may be current for a lengthy period and apply for multiple visits, seafarers will still have to leave Australia at least once every 3 months.

• Whilst implementation will likely commence from 2006 (with a mandatory date proposed of July 2007), DIMIA are proposing a ‘soft implementation’ along the lines of their mandatory passport requirement in 2003. In other words, there will be a reasonable ‘grace period’ for introduction.

DIMIA are seeking the maximum possible compliance with the new requirements. Accordingly, they are seeking the smoothest, most practical set of implementation processes and requirements as possible.

In discussions today with DIMIA, further consultation is being scheduled for early in the New Year to continue the process of ironing out the implementation details.

For further information contact Trevor Griffett on (02) 6243 4812.

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A report appeared in The Australian on Friday, 9 December headed “We will stand by Qantas, says PM”

The article noted that the Prime Minister had given his strongest comments yet that defending Qantas would be paramount for Cabinet.

The interesting aspects of what the Prime Minister is quoted as having said on ABC Radio is this:

“You have got to be absolutely certain that each participant in the market is coming from the same launching pad as far as government support and so forth was concerned.”

The Deputy Prime Minister, Mark Vaile was reported as saying that he was a strong supporter of competition, but said: ‘….we need to do it in a balanced way that reflects the differential circumstances that many of the global carriers operate under, that is different to Qantas.’”

This is an interesting and timely comment supporting protection for Qantas against foreign carriers, particularly those receiving support from their foreign governments and is in stark contrast to the treatment of Australian shipowners compared to foreign carriers - including those that receive support from their foreign governments.

There are strong similarities between the aviation and shipping market policy environments and there are differences, too. In aviation the Australian government does not allow foreign operators to undercut prices by exempting foreign operators from the operation of Australian law.

In shipping it does.

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A presidential signature on the statute is all that remains before implementation. Once in effect, shipping sources told Fairplay, international lenders for newbuildings on order to Russian shipping companies may opt to take security over Russian-flag vessels; or have the vessel ownership vested in foreign registered corporations, whose shares would then be used for loan security.

Andrei Kleymenov, vice president of Volgotanker, says that taxes on fleet operations are too high. Volgotanker is Russia’s largest tanker fleet operator, and also owner of shipbuilding yards in Rybinsk, Samara and Astrakhan. “The tax regime places Russian shipping companies at a competitive disadvantage with their international peers. But worse, the tax authorities are arbitrary and corrupt in their administration of the regulations,” Kleymenov alleges.

According to the transport ministry, 96% of the fleet added to Russian shipping companies in the past decade have been flagged in Malta, Cyprus or Liberia. At present, 90% of all vessels owned by Russian shipping companies fly foreign flags.

courtesy Lloyd's Register - Fairplay web links

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The DPD commenced sittings in October 2004, and has a program of ongoing co-operation with the Australian Senate, focussing on capacity building. It has 128 members, 4 from each of Indonesia's 32 provinces who are directly elected by voters in each province. There are no appointed members and neither are Members allowed to belong to political parties.

As a representative of Australia’s non-government organizations (NGO’s), ASA Canberra Director, Trevor Griffett appeared with the Business Council of Australia and the Australian Private Hospitals Association.

“This was a unique opportunity” said Griffett “and the 7 DPD representatives were keenly interested in the role that industry can play with government in the development and reform of legislation.”

While the DPD has virtually no legislative powers - its powers are limited to “advising” the lower house, DPD members aspire to an increase in their legislative powers eventually. At present, the DPD is focused on finding ways to capture the views and aspirations of regional Indonesians, and then to convey them to the ruling executive government in Jakarta. This ground-breaking committee hearing was a first step in exploring the ways these regional views can be explored.

Further information can be obtained from Trevor Griffett on (02) 6243 4812 or Dr Anthony Marinac at Parliament House on (02) 6277 3171.

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The meeting focused on changes to the structure of AMC courses as well as various funding models that exist within the Vocational Education and Training (VET) and Higher Education sectors.

“The meeting gave industry the opportunity to raise several issues in relation seafarer training at the AMC and gain an understanding of the strategies that the AMC plan to adopt in the future” Evan Westgarth said following the meeting.

Representatives at the meeting believed it was a success and the AMC plan to form a committee that will meet on a biannual basis.

For further information please contact Evan Westgarth on (03) 9646-0755

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It remains an indictment that the movement of these cargoes has largely been on foreign controlled ships. This article noted, "hailed" in fact, the recent increase in resource exports as "a sign that investment in mines and ports is starting to bear fruit".

It is, perhaps, an unfortunate indictment that the movement of these cargoes has largely been on foreign controlled ships. It is perhaps a worse indictment that the current government facilitates this process, to the detriment of Australian controlled carriers. "Examples such as the recently signed LNG contract off the North West Shelf failed to incorporate Australian carriers in the overall deal" notes Canberra Director, Trevor Griffett. "This is a narrow-minded oversight on the part of the Government who negotiated this deal."

Australia's cargo owners' continued reliance on foreign shipping increases the current account deficit by billions of dollars annually for the payment of these transport services.

In an otherwise difficult week for the Treasurer, he has understandably embraced the good news on resource export growth. However, it is important to remember that ports only exist so as to load cargoes on ships - the relative importance of shipping and ship operators in the export of Australia's resources is critical.

Transport in Australia is often thought of as simply about road and rail - this was reflected in the focus of (the then) Minister Anderson's AusLink initiative. Griffett points out that, "sea is a significant and often overlooked player in the surface transport of cargoes in Australia."

And, Canberra is starting to see this oversight.

The November 2005 edition of 'About the House' magazine in Canberra noted that, "sea transport requires no permanent highway infrastructure, is the most fuel efficient of the three transport modes, generates the least greenhouse gas emissions and creates the smallest social impact ... the federal government will spend almost $11.4 billion on land transport over the next five years; almost $11 billion in road and rail funding and a one-off $450 million investment for new rail infrastructure projects - but nothing on shipping".

The frustration for Australian controlled ship operators in reading a headline such as that accompanying this AFR article is that it is perhaps more accurately "Foreign ship's come in at last..." or "Their ship's come in, current account deficit set for further rises..."

For further information please contact Trevor Griffett in ASA's Canberra office on (02) 6243 4812.

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This is a significant win for the industries involved, as the decision making process for the granting of MSIC's would otherwise have defaulted to the issuing bodies from the end of 2006.

DOTARS will operate the background checking for MSIC until 30 June 2007 and the new division within the Attorney-General's department will take over from 1 July 2007.

ASA has been lobbying for this outcome since early 2004.

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There are further delays and a distinct lack of progress being made, despite the industry appealing to the collective governments to move faster.

A paper prepared by ASA describing the sections of the IMO Convention which have thus far remained un-addressed was discussed at the meeting. It is obvious that more education of government representatives on the advancement of treatment systems is required and this is something ASA will progress in the coming months.

Issues yet to be seriously addressed include the requirement for ships to delay voyages to conduct an exchange, who will conduct inspections, arrangements in poor weather, ballast water treatment plant approval and more.

The situation appears to be deteriorating in terms of decision making process and speed.

More information, Teresa Hatch 03 9646 0755

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To be known as 'TSPACE online', the new web-based, online application system would significantly streamline the coastal trading permit administration process. From the outset, this initiative has been beset by IT delays within the Department of Transport & Regional Services (DOTARS).

"Further commitments made in August to implement much sought after industry amendments have also been set back with these delays" says ASA Canberra Director, Trevor Griffett. "For 12 months we have been working with DOTARS to improve the transparency and clarity or coastal permits, and every bureaucratic obstacle seems to be placed in the path of improving this system for Australian licensed operators".

It is hoped that the new system will be online by early 2007.

For further information on the coastal trading permit system and its administration, please contact Trevor Griffett on 02 6243 4812.

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ABC Lateline:

Broadcast: 27/2/2001

Indian stonemasons exploited to build temple

The case of eight Indian stonemasons who were brought to Australia and then exploited has outraged the union movement. The men were employed carving stone on an Indian temple south of Sydney and were paid a pittance for their craftsmanship. They received $145 a month and were forced to work a 7-day week. The plight of the men has highlighted the exploitation of foreign workers, both legal and illegal, across Australia.

That was 2001. In December 2005, the Australian government facilitates around 1,000 foreign workers at foreign rates of pay working in foreign ships in Australia’s domestic transport logistics industry. The ships operate under continuing permits issued by the Australian government with immigration arrangements to match.

According to the Sydney Morning Herald (2 Feb 2004), the Immigration Department ruled the stonemasons were sponsored on working visas with an undertaking that they be paid Australian minimum wage rates. No such requirement to pay Australian wages is imposed by Australia’s immigration authorities on foreign ships working in Australia’s transport industry, but of course it is a requirement on Australian ships working in the same industry!

The problem for Australian shipping is that Australian law can prevent Australians from being competitive with these foreign ships.

ASA maintains a database of Continuing Voyage Permits (CVPs) issued by the Minister for Transport and Regional Services.

The database contains CVPs that have been issued since December 2002. It shows that 37 foreign can operate in Australia’s domestic trades at the time of this update.

Thirty-one of the thirty-seven are container or general cargo ships. Eighty-nine foreign vessels have been provided with CVPs over the past three years and the nationality of ownership of these vessels is German (23), China including Hong Kong (16), UK (5), Japan (5), Malaysia, Norway, Bahamas, Denmark, South Korea and Singapore.

None are Australian-owned. That is understandable since foreign-owned ships are permitted to operate in Australia whilst escaping Australian legislation (and cost) in a way that is not made available to Australia-owned ships.

Some foreign vessels are long standing Australian domestic shipping participators. The self-discharging bulk carrier Stadacona (UK owned, Bahamas registered) has held CVPs for around two and a half of the last three years. According to the records we have, the container vessel P&O Nedlloyd Adelaide held permits for around 90% of the time between April 2003 and September 2005.

One of the most consistent vessels has been the OOCL Exporter. This Hong Kong owned container ship has been provided with permits by the Australian government to participate in Australia’s domestic transport industry for around twenty-nine and a half of the past thirty months. OOCL Exporter celebrates her 30th birthday next year.

Another interesting container ship which has been permitted to operate in the domestic transport industry in Australia for most of the past two years between 2003 and 2005 has been Bunga Teratai which became well known under her former name Bunga Teratai Satu.

Another container ship, the Japanese-owned MOL Golden Wattle sought and was provided by the Australian government with permits to operate in Australia. This ship’s permits covered the whole period between May 2003 and October 2005.

The next instalment of this analysis will look at the Australian ports to which the permit holders are allowed to trade.

How many Australian ports do you think might be involved?

If anyone reading this wants to have a guess, email us admin@asa.com.au telling us how many different Australian ports you think might have been the subject of permits issued to foreign ships participating in the Australian transport logistics industry.

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“We still pay about 12 different taxes and duties on shipping alone,” said GE Shipping executive chairman KM Sheth, adding that these push up their cost. “Because of high taxation, we are not getting quality manpower,” he said.

According to sources at the Indian National Shipowners’ Association (INSA), the government has come round to taking a favourable view of the problems of the shipping industry. Estimates suggest Indian companies pay about Rs3Bn ($68M) in taxes. An industry official said that although India adopted tonnage tax regime, various taxes have weighed down their competitive advantage in international market.

Courtesy Lloyd's Register - Fairplay web links

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Unlike the ANTA advisory board, the new committee will predominantly consist of employer representatives, with early indications being that only one position will be reserved for a Union representative.

Whilst positions on the committee are limited, at this stage it looks like the transport and logistics sector will be represented. ASA’s employee relation’s officer Evan Westgarth said recently, “Having increased employer representation may be useful in highlighting broader training issues such as funding and the issues that surface in national industries as a result of the State/Territories framework that is currently in place.”

Also, TDT Australia (the transport and distribution ITAB) are planning to develop a maritime industry sector committee made up of employers and regulators. The primary objective of the committee will be to identify issues and develop strategies in consultation with TDT that ensure the industry is moving in the right direction in respect of training.

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The breakfast was attended across the spectrum of the paint, environment and shipping industries alike. Guest speaker John Lewis - (Defence Science & Technology Organisation) who provides valuable scientific oversight to the project gave an informative presentation about the results of the project so far.

The event was held at The London Hotel in Port Melbourne.

For more information on the Commercial Vessels Niche Biofouling Project click here

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Coming into the role is Mr Andrew Tongue, previously the First Assistant Secretary, Office of Transport Security. Andrew has spent much of this year heading up a DIMIA taskforce concerned with addressing the structural and cultural causes that led to the recent unfortunate immigration 'bungles'.

"This is a positive development," says Canberra Director, Trevor Griffett. "Andrew was instrumental in ensuring a smooth introduction of the initial maritime security legislation in Australia. When he was transferred to DIMIA, we feared he would be lost to this industry."

A decision on Tongue's permanent replacement for the First Assistant Secretary role is anticipated within the week. John Kilner has been acting in the role since Tongue's departure. It is understood that DOTARS are finalising their consideration of 4 candidates.

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At the Awards function in Sydney attended by over 300 representatives of the domestic industry, ports and liner trade operators, LLDCN Deputy Editor, Sandy Galbraith praised ASA. “This achievement should not be under-estimated,” said Galbraith. “This turn around saved the industry an amount equivalent to the GDP of a small nation.”

ASA developed a consortia of operators – domestic and foreign – to collectively fight this battle on behalf of the industry. Through a focused lobbying campaign and media pressure by ASA on the Minister for Revenue, ASA and Middletons had the ATO reverse its initial draft ruling on RWHT. Aside from the direct financial benefit of that reversal, the ATO has now adopted far more consultative processes in developing draft taxation rulings, across the whole of the ATO. This has been reflected in the broadly accepted draft Ruling on freight tax, released earlier this year.

“It is a significant achievement for ASA to have this issue recognised at such an industry forum,” said ASA Canberra Director, Trevor Griffett. “Whilst Gavin Vallely and Philip Diviny of Middletons were formally recognized as the LLDCN Newsmakers of the Year, ASA’s contribution in achieving this industry victory has not gone without notice.”

“The work and contribution of ASA is often taken for granted by the wider Australian shipping industry” said Griffett, “and this award highlighted just how important and effective the Association can be for its Members and the wider industry.”

Further information can be obtained from Trevor Griffett (02) 6243 4812.

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Australia is hosting an APEC meeting in 2007, and the task has officially begun to develop a ‘roadmap’ describing the remaining work required for reaching the Bogor Goals of trade liberalization and facilitation in all modes of transport. These goals were agreed by all APEC leaders in Bogor, Indonesia in 1994.

The Transportation Working Group continues to work towards removing barriers to market access and other constraints upon the natural growth of more competitive transport services. The Department of Transport & Regional Services (DOTARS) is performing a key co-ordination role over the next 2 years.

To this end, ASA has identified the market access constraints of a number of our Asian neighbours, and the domestic legislative impediments which, when combined with ready access to coastal trade permits, often hamper Australian licensed operators from accessing ‘their own’ market, let alone foreign coastal markets.

“The response of the APEC representatives to the industry’s concerns was encouraging,” says Canberra Director, Trevor Griffett. “ASA has long been concerned with uneven levels of market access, both here and with many of our Asian neighbours. There are numerous examples of where this has inhibited the growth of the Australian shipping industry in recent years. Hopefully this ‘transportation roadmap’ will show the way to the Australian Government to facilitate more competitive sea transport.”

More information on this initiative can be obtained from Trevor Griffett (02) 6243 4812.

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A key issue for the shipping industry is the Maritime Security ID Card (MSIC) implementation.

MSICs are to be progressively implemented across the country on a port by port basis. Melbourne is the first port to implement the cards and this will commence on 28 November 2005.

Shipping companies need to consider where and when they will have thier staff apply for MSICs. ASA is producing a detailed "How To" Guide for application etc. This is be available as soon as the details can be determined as to what the process actually is.

The ASA secretariat attempted to apply for an MSIC this morning only to be frustrated at the very first hurdle - that being finding a form to fill in!

ASA Members will receive further advice asap on this matter. Further web updates will follow. For further information, contact Teresa Hatch.

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There are downsides to having a strongly unionised industry such as in the maritime sector, but one saving grace can be that the unions can usually be relied upon to honour undertakings entered into on industrial issues.

Disruption to shipping movements is a serious and expensive situation at any time. The situation seems worse when undertakings that were accepted as reliable were apparently breached by a small group of individuals.

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ASA’s membership consists of tanker owners, charterers and managers, towage and salvage operators, dry bulk owners operators and charterers, coastal general cargo operators, roll-on roll-off vessel operators, gas carrier owners and operators chemical tanker operators and manning agents.

This is a unique blend of shipping interests and cargo interests who share at least one objective: the provision of safe, clean, internationally competitive, reliable and high quality shipping services.

Fourteen of ASA’s seventeen members attended an important meeting in Melbourne on Tuesday this week (8 November). The meeting considered a number of issues.

One of the most important matters facing the Australian shipping industry is the anti-competitive environment in Australia’s domestic sea transport industry.

It is remarkable that in order to begin to be able to offer jobs to hundreds of young Australians who enquire each year about careers in shipping, it is sometimes necessary for Australian companies to turn themselves into foreign entities just to operate in Australia.

This inverted-sounding scenario arises because there is a mechanism in Australian law that allows international ship operators to access Australia’s domestic shipping market on terms not available to Australians in the Australian market.

The ASA members agreed that steps must be taken to redress that tilted policy position. There are job opportunities that could be offered to Australians in shipping companies, towage companies, port companies, ship repair companies, ship supply companies, ship insurance companies and even in the legal and finance professions if the legislative problems were removed.

The costal shipping market in Australia is a bit like an unusual 200 metre race. It is an unusual race because the competitor from overseas runs a conventional, flat 200 metres while the Australian has to clear 200 metres of high legislative hurdles.

If the Australian runs overseas the hurdles disappear; if the race is in Australia the hurdles reappear – at least for the Australian.

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The hard-hitting Michael Carmody has taken over as the new Chief Executive Officer of the Australian Customs Service.

Mr Carmody's appointment as CEO of Customs, for a 5 year term, follows service as Commissioner of the Australian Taxation Office since 1993.

Customs is currently facing a series of challenges implementing new cargo facilitation systems and oversighting foreign ship's crews and cargoes entering Australia in the new security environment.

Mr Carmody replaces Mr Lionel Woodward whose period as CEO of Customs ends on 31st December 2005.

Replacing Mr. Carmody at the ATO as Commissioner of Taxation is Michael D’Ascenzo. Michael's name may not be well known to the Australian shipping industry, though his reputation was well felt in 2003 when he oversaw the drafting of the first controversial taxation ruling on Royalty Withholding Tax (RWHT).

Mr D’Ascenzo has an ongoing overall focus on the interpretation of tax law and tax implementation processes, as well as corporate planning, finance and governance functions issues. He chairs a number of internal committees and is involved in numerous other high level Tax Office and external forums, including the National Tax Liaison Group and the Tax Office/Treasury Tax Policy Coordination Committee.

In other Canberra appointments, Damian Callachor has taken over from Will Golsby as maritime advisor to the Minister for Transport. "Damian will ultimately be the primary point of contact for the maritime industry with the Minister's office," says Canberra Director Trevor Griffett, "though Will Golsby will continue to retain responsibility for road and rail transport, both 'linked at the hip' through Auslink funding, which maritime is not."

"Although it is unfortunate that the surface transport modes have been separated, we look forward to working with Damian" says Mr Griffett.

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Although the day started with inclement weather looming, the match proceeded on time after the Vics won the toss and elected to bowl. Due to a late withdrawal from the NSW team, Karen Shaw (AMSA) joined the ranks and proved a valuable recruit.

Despite the odd boundary from Matt Cowell (Stolt NYK) and great running between the wickets from Peter French (ALSOC), the Victorian attack were on top early with some spectacular fielding and tight bowling from the speedy duo of Trevor Griffett (ASA) and Chris McGuire (Dorchester Maritime). Four overs into the innings, the Victorian outfit were off to a flyer, reducing the New South Wales team to a negative score after the first pair.

Enter Jack Manning (ALSOC). Charged with the task of steadying the ship, the first two sixes of the afternoon came right off the middle of his bat. In fact, there were many in the NSW side that proved they could wield the willow, including the captain Andrew Miller (Stolt NYK), Stephen Ainscough (ASPSM), and Glen Colaco (ANL), while Matt Hodkinson (ASPSM) and Jon Sims (Shell) were steady accumulators.

For the Vics, some outstanding fielding was on display, with Belinda Wootton (ASA) proving handy with the ball and Adam Manders (ASPSM) providing some inspiration and encouragement in the field. Adam’s consistent appealing (even when the ball was not in play!) managed to lift the spirits of the Vics when it looked like NSW were getting on top.

As in previous years, David Sterrett’s (ASA) exceptional wicket-keeping commitment was evident when he sustained a thumb injury that might have put others out of business, while the Vics skipper Hayden Latchford (BP) took a pearler of a catch at first slip to dismiss the controversial Teresa Hatch (ASA), who was suspected of bribing the umpires, Garry Prosser (AMSA) and Sanjay Dhareshwar (Rightship) as well as trying to influence the scorers, Marcus DeFina (ASPSM) and Sean O'neil (AMSA).

Roger Lowe (Teekay) showed promise with the bat, yet was run out twice through some inspired fielding.

Angela Gillham (ASA) must be congratulated for her improved batting and for taking some photos of the afternoon that would have made a professional sports photographer envious.

Finally, after the inevitable rain delay and a wicket with the last ball of the innings from Lachlan Payne (ASA), NSW set Victoria an imposing total of 109 to win.

The Vics started with the bat just as they had with the ball, impressively. Persistent batting from Dianne Murray (Trident) and Nigel Porteous (ASPSM) indicated they were not going to be knocked over easily. Last years player of the match, Craig Faulkner (Adsteam), again showed talent, playing an elegant innings.

Mid way through the Victorian innings, the contest was far from over, with NSW clawing their way back through some consistent bowling. David Parmeter (Teekay) was accurate with the ball claiming three valuable wickets in the one over.

Just when it looked as though the game might have slipped from the Vics grasp, Ian Redfern (ANL) entered the fray and was the first Victorian to hit multiple sixes. Coupled with a partnership of 36 from Stuart Scott (ASPSM) and Evan Westgarth (ASA), the momentum had swung back Victoria’s way.

So it was, just as they had done on four previous occasions, the mighty Vics emerged from battle victorious, elated with the knowledge they had successfully reclaimed the prestigious Chairman’s Shield.

Mr. Versatile Brett Whiteoak (BP) was awarded the player of the match, not surprising given his almost freakish catching ability and his all-round efforts with bat and ball. Femke Marsland (Trident) also received an award, for being the best first year player.

Special thanks must go to the umpires and scorers, who were outstanding in contributing to a great afternoon.

ASA would also like to thank the players involved, as well as the members and other maritime industry guests for their attendance and efforts in ensuring the continued success of the annual event.

The event dates back to 1904 when four annual matches were played consecutively before the event went into recess for nearly 100 years, which concluded when the event was successfully reborn in 2003.

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For some time the ASA secretariat has been considering offering preliminary recruitment services for our members, in an effort to provide shortlists for seagoing occupations and relieve some of the administrative pressures associated with recruitment.

"Essentially, employing an individual is an investment, with effective recruitment practices being vital to the success of any organisation. Of course, effective processes have the ability to improve general work related performance, but they also have the potential to positively impact in other areas of business" ASA's Employee Relations Officer, Evan Westgarth said recently.

Following the endorsement of the idea at a recent HR committee meeting, the secretariat is moving through the initial planning stages including developing material and application forms that may appear on the ASA website.

For more information please contact Evan Westgarth on (03) 9646-0755

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Mr Payne commented: “The Transport Logistics industry consists of all transport modes – air, sea, road and rail. There seems to be a continuing idea, which has been perpetuated by Auslink, that transport in Australia is just trucks and trains. “

A series of new initiatives seems to be emerging in sea transport whilst the prognostications for land transport seem gloomy.

It is ironic that the outlook for road and rail would be described as being so dire and the outlook for sea positive. According to the Australian Government Budget 2004 -2005 Regional Budget Highlights

“The Australian Government will spend $11.4 billion on land transport over the next five years. This consists of almost $11 billion in road and rail funding and a one-off $450 million investment for new rail infrastructure projects in 2003-04.”

At the same time, virtually no government funding has been allocated to sea transport, and yet

• Sea transport requires no permanent way/highway infrastructure
• Sea transport is the most fuel efficient of the three transport modes
• Sea transport generates the least green-house gas emissions of the three modes
• Sea transport creates the least social impact of the three modes
• Port infrastructure required for sea transport is more than fully funded by the shipping industry.

Shipping supports 28 percent of the domestic freight task and consumes 9.6 percent of the total energy used in freight transportation, but contributes to just 2 percent of the total emissions from the transport sector.

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The proposed legislation totals a huge 691 pages and is accompanied by approx 500 pages of explanatory document.

During the parliamentary sitting, Steven Smith, the industrial relations spokesperson for Labor, urged for any parliamentary debate to be deferred until all members have had the chance to review the Bill and make informed judgements.

The motion to defer the debate was overruled by the Speaker of the House, which sparked outrage from Labor. Mr Smith argued that members were not supplied with copies of the Bill and that the Government were deliberately trying to fast-track the legislation by not allowing proper scrutiny.

The ACTU along with several state governments have voiced their intention to challenge the legislation within the legal system. Furthermore the Opposition leader has attacked the Prime Minister over the estimated $55 million dollars tax payers have spent on advertising what the Opposition Leader describes as an "immoral" system.

There is no doubt the proposed changes are controversial and far reaching, with great debate to continue in the coming weeks.

For further information please contact Evan Westgarth on (03) 9646-0755.

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The Seacare scheme is Australia’s only national, industry-based, occupational health and safety and workers’ compensation scheme. It covers seafarers who are maritime industry employees and trainees generally working on ships engaged in overseas, interstate or intra-territorial trade and commerce. The scheme aims to protect and enhance seafarers’ health and safety. Where seafarers are injured it aims to provide for their safe and durable return to work while providing financial security through an efficient and effective scheme of rehabilitation and workers’ compensation. The workers’ compensation scheme is privately underwritten, administered and funded by the scheme’s employers.

During the year, the Minister for Workplace Relations, Kevin Andrews announced an independent review of the Seacare scheme with broad terms of reference encompassing the scheme’s purpose and objectives, scheme design and coverage, governance and delivery. The conduct of the Review enabled interested persons to make submissions. Together with our counterparts in the offshore sector, ASA made a comprehensive joint submission to the Minister. These discussions continue and a response is anticipated within the coming months. A fundamental question posed by the Review has been whether alternative systems to the existing arrangements would facilitate improved outcomes.

The Authority has reported that on key injury prevention and workers’ compensation indicators the scheme has achieved very encouraging improvements in performance in the year under review, particularly in relation to incidence and frequency of injury measures. Provided the current levels of performance can be maintained, the scheme looks set to achieve the 10 year National OHS Strategy target, being a 40% reduction in the incidence of injuries of one week or more.

While workers’ compensation premiums generally increased for 2003-04, the latest year for which premium information is available, it is hoped that the more positive injury performance during 2004-5 will be reflected in lower premium rates in future years.

The Seacare scheme injury incidence rate for 2004-05, (the number of accepted claims resulting in one or more weeks of incapacity per 1 000 FTE employees), was 22.55, a significant improvement over last year’s rate of 45.66 (Source: Seacare Authority).

The Seacare scheme injury frequency rate for 2004-05, (the number of accepted claims resulting in one or more weeks of incapacity per million hours worked) was 5.19, also a significant improvement over last year’s frequency of 10.52 (Source: Seacare Authority).

There were no work-related fatalities in the Seacare scheme in 2004-05, bringing the fatality free period in the Seacare scheme to ten years (Source: Australian Maritime Industry Compensation Agency Ltd (AMICA)).

Further work is always required, but the industry should be congratulated and encouraged for its achievements over the past year.

If you have any further queries, please contact Teresa Hatch on (03) 9646 0755 or Trevor Griffett on (02) 6243 4812.

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Concerns surrounding medical fitness requirements and the processes which have been adopted to apply these standards have existed within the industry.

As with any review process, an opportunity exists to analyse and develop the processes and standards adopted in an effort to increase the overall effectiveness of the regime. ASA is of the view that a more stringent, vigilant regime has the potential to positively impact on areas such as OH&S, workers compensation and overall productivity.

To view the ASA submission, go to the Labour section of this website and click on position papers. For further information please contact Evan Westgarth on (03) 9646-0755.

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The Governments vision is to develop a system that increases flexibility within the workplace, while at the same time improving productivity and increasing the nation’s ability to compete in the demanding global marketplace.

Under the proposed regime, collective agreements will no longer be certified in the AIRC but, along with all other workplace agreements be lodged with the Office of Employment Advocate. Unlike the current regime, agreements will take effect form the date of lodgement instead of the date of certification or approval.

Importantly, organisations lodging agreements that fail to comply with legislative provisions in terms of lodgement procedure and agreement content will face financial penalties.

The AIRC will remain responsible for making new Awards provided they are consistent with decisions and standards developed by the new AFPC. Where existing Awards are more generous than AFPC standards the Award shall prevail. Also, with the exception of certain conditions prescribed by the AFPC, Award provisions shall be subject to enterprise bargaining in a move that will surely increase workplace flexibility. Where there is no specific reference to a condition within an agreement the award provisions shall apply.

There is little doubt the reforms outlined by the Government yesterday represent sweeping changes that have significant implications for everyone. At this stage, the new legislation encompassing the changes will be introduced to parliament in late October.

For further information please contact Evan Westgarth, Employee Relations Officer - Maritime on (03) 9646-0755

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Quite appropriately, the ATO sought to structure their freight tax ruling by seeking to tax payments related to the business activity of carrying cargoes. In part, the ruling applies freight tax to "amounts paid or payable in respect of the carriage of goods ... [including] the 'coasting trade' where the ship is operated by a person whose principal place of business is outside Australia."

The 'coasting trade' is defined in the Draft Tax Ruling by reference to section 7 of Navigation Act 1912. Vessels operating in the 'coasting trade' are required to satisfy a raft of other Australian regulatory and legislative requirements. The Navigation Act 1912 also regulates the granting of 'permits' to foreign vessels to carry cargoes between Australian ports.

However, so that 'permit' vessels can avoid the cost impact of having to satisfy Australian legislative requirements (to ensure that their freight rates can remain low) permit vessels are specifically exempted under section 286(2) from being deemed part of the 'coasting trade'. Rather, permit vessels are said to operate 'in coastal trading'.

Says Canberra Director, Trevor Griffett "The application of the Nav Act exemptions to exclude permit ships from being seen as part of Australia's domestic freight network is an example of the farce of Australia's current shipping policy. These are the very ships that the ATO was seeking to tax. It is high time for all modes of transport in Australia to be operating under the same internationally competitive regulatory regime."

This anomaly has been brought to the attention of the ATO. Public comments on the Draft Tax Ruling are due by 9 November 2005.

For further information contact ASA's Canberra office on (02) 6243 4812.

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ASA contends that these provisions should be retained. As quoted in the AFR, ASA Canberra Director, Trevor Griffett notes that "it was critical to retain the Part 10 exemptions as it ensured reliable and cost-effective cargo shipping services for Australia".

"If Australia is right about removing these protections, then the rest of the world is wrong. The only countries the Productivity Commission holds up supporting such withdrawals - the US and EU - both have protectionist shipping policies."

Conference lines have suggested that without the ability to operate as conference lines, sharing cargoes and prices, Australia may be a destination that is geographically too distant to provide a regular 'liner service'.

Whilst the Part X provisions appear to offer some measure of protection to domestic carriers from otherwise collusive foreign competition - especially in the carriage of cargoes between domestic ports, this protection is largely academic. Says Mr. Griffett, "even if Part X was removed, under the current Australian shipping policy environment, no Australian entity is likely to enter the market to compete. Looked at as a whole, Australia's shipping policies are world's worst practice."

The Government has not yet responded to the Productivity Commission's recommendations.

For further information contact ASA Chief Executive, Lachlan Payne on (03) 9646 0755 or Trevor Griffett on (02) 6243 4812

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In the wake of a controversial ATO Ruling on royalty witholding tax in 2003, ASA has been in consultation with the ATO as this new Draft Ruling has developed. "As recently as June 2005, the ATO embraced ASA's suggestion to focus on the activity intending to be taxed" says ASA's Canberra Director, Trevor Griffett. "This is preferable to focusing on the types of contracts under which the payments are made".

Despite 2 years of consultation, early interpretations suggest that the ATO may have have added to the confusion. The Draft Ruling appears to have exempted all 'permit ships' from this tax. It applies to amounts paid or payable in respect of the carriage of goods etc. 'shipped' in Australia as well as the 'coasting trade'. 'Coasting trade' is defined by reference to s.7 Navigation Act 1912.

However, 'permit ships' - the foreign carriers presumably the focus of this Ruling - are excluded from the definition of 'coasting trade' in s.286(2) of the Navigation Act 1912. "It is remarkable that after all this consultation" says Griffett, "that the ATO can still so misunderstand the way the shipping industry is regulated."

This would have the effect of widening the divide between Australian operators carrying domestic cargoes and foreign carriers operating in Australia. Domestic operators have the company profits taxed in the normal manner. Foreign operators are invariably operating in much more favourable tax environments.

Says Griffett, "this is hardly the goal of 'competitive neutrality' recommended by the Productivity Commission earlier in 2005. Remarkably, this may be another example of why it is better not to be Australian when you operate a ship in Australia."

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Mr David Sterrett, Chairman of ASA, spoke to attendees about maritime policy issues in Australia, highlighting the current competitive advantages available to foreign opeartors.

Mr Sterrett's World Maritime Day Breakfast speech is available here.

The breakfast will launch a day of celebrations amongst the Maritime community with various events continuing around the country throughout the day.

For further information contact ASA on 03 9646 0755.

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Despite the briefings, the review of these Acts has not formally been released.

177 submissions were received by DEWR, including a joint submission by the members of the Australian Shipowners Association and Australian Mines & Metals Association. The key concerns of these employers appear to have been acknowledged, with most employer recommendations being recognised, including:

* the scope and coverage of the Acts,
* the limited ability to redeem long-tail claims,
* the breadth of the definition of 'injury', and
* the lack of competition in the domestic insurance market.

Two options have apparently been presented in the review, including the preferred outcome to retain the existing scheme, albeit it in a 'modernised' form. Whilst this appears to present some difficulties to ensure long-term viability of the existing regime, employers noted yesterday to DEWR that it was far more preferable than the alternative option - a return to State coverage for seafarers' worker's compensation.

DEWR have indicated that Ministerial proposals will be prepared over the next month or so, with a decision from the Minister's Office expected by years' end. It is unlikely that legislative amendments will be finalised before the 2006 Autumn sitting of Parliament.

Further information is available from Trevor Griffett on (02) 6243 4812

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The most significant aspect of these amendments is the implementation of MSICs from 1 October 2005.

DOTARS have determined that a phased introduction of MSICs will be undertaken and in the absence of any better approach, have scheduled a phased introduction around the country based on ports.

The initial implementation is to be undertaken in the Port of Melbourne. Shipping personnel who will require an MSIC will not be required/encouraged to begin the process of applying for MSICs until Stage 2 of the phased implementation, to commence around November 2005.

Individuals will be required to apply for an MSIC if they have an ‘operational need’ to hold an MSIC or if their occupation or business interests require them to have unmonitored access to a ‘maritime security zone’ at least once each year.

Whilst this differs between operators, most, for practical purposes, have designated the whole ship a ‘maritime security zone’. Accordingly, all seafarers on these ships will require MSICs.

It is important to note that whilst MSICs are not mandatory until 1 January 2007, a number of port facilities may start requiring MSICs after they have implemented the regime for their shore staff.

Ship operators are now faced with the dilemma of determining whether they will become 'issuing bodies' under the legislation, or whether they can rely on 3rd party providers. If DOTARS exit the administration process after 1 January 2007, this might not be possible. ASA continues to press DOTARS and the Government for a continued direct involvement by DOTARS after the initial implementation.

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The availability of single voyage permits (SVPs) and continuing voyage permits (CVPs) - otherwise known as cabotage - remains a sensitive and contentious issue to the operators of Australian controlled shipping.

"The issue is about transparency and clarity in the Guidelines that administer the system" says ASA Canberra Director, Trevor Griffett. "There is increasing frustration by shipper applicants and licensed operators alike that they can't predict how permit applications - and challenges - will be handled. This is proving a distraction from the underlying policy settings affecting the Australian industry."

"The critical question isn't why foreign carriers access permits, the critical question is why aren't licensed vessels available to cost-competitively challenge permit applications?" says Griffett.
"The underlying legislative and economic impediments to Australian operators need to be addressed, and soon. The focus should be on the retention and development of Australian maritime skills and the business of Australian shipping."

ASA maintains that where cabotage historically ensured the carriage of coastal cargoes for Australian carriers, it now has the effect of exempting foreign carriers from domestic laws.

Discussions with DOTARS were positive and there was agreement to make minor amendment to the Navigation Regulations to stress the existing penalties for false or misleading statements made in permit applications, and to provide greater clarity to the concept of 'reasonable commercial terms' in the Ministerial Guidelines.

ASA members will also assist the Office of Transport Security (the day to day administrators of the permit scheme) to audit the notification processes to licensed operators.

DOTARS have also undertaken to resolve the privacy issues that have recently prevented the release of SVP cargo data to industry.

For more information, please contact Trevor Griffett on (02) 6243 4812.

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"This was the first opportunity to meet with the new Transport Minister" said ASA Chairman David Sterrett "and it was clear that the Minister has a broad understanding of the issues facing the owners and operators of Australian-controlled shipping."

Minister Truss' predecessor, Hon John Anderson MP made positive undertakings to the industry in April, and maritime employers sought to ensure that the momentum gained from those discussions was carried forward.

Whilst there was clear support to address the growing maritime skills shortage, and the limited number of cost-competitive training berths (through reform of s.23AG), the policy climate may not yet be ready for reforms to depreciation regulations (so as to spawn new investment) or mandatory Australia ship registration requirements (so as to permit world's best practice operations).

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Two commercial vessels alerted the US Coast Guard to migrants attempting to cross from Hispaniola to Puerto Rico this week, and helped saved the lives of more than 50 Dominicans.

USCG spokesman Lt (jg) Eric Willis told Fairplay that the coastal freighter Andrea I called the Coast Guard early yesterday morning, alerting them to a yola drifting in the Mona Passage with 29 Dominican males and six Dominican women aboard.

The merchant ship remained with the drifting craft until daybreak when the cutter Farallon came on scene, removed the migrants and repatriated them to the Dominican Republic.

Last week, the Farallon responded to a call from the US-flagged tug and barge San Juan-Jax Bridge, which was about 70 n-miles north of Puerto Rico on 3 August when its helmsman spotted a yola carrying 22 Dominicans. Willis said those aboard had no idea where they were. Most of the 17 males and five females on the small open craft were dehydrated when the cutter arrived. The migrants were treated and fed before being repatriated.

“They probably saved a lot of lives,” Willis said of the two merchant ships. He added that vessels travelling through the Mona Passage often report migrant traffic, “but it is especially helpful when they remain on station until our crews arrive.”

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The Maritime Security ID Card (MSIC) regime is set to implemented by regulation within the next few weeks. ASA believes that the regime still contains key flaws in respect of the administration of MSIC applications.

As reported in the Financial Review on 11 August 2005, ASA has stated that the reliability of the security cards was at risk if the government continued to rule out funding the administration and issuing of cards after next year.

Trevor Griffett, ASA Canberra Director, states that it is a disturbing 'political decision' to expect employers to take over the issuing of identity cards from 2007.

"Our concern is that it's simply about saving dollars at a time of heightened security concerns in the nation's ports and along its transport network".

"And this does not even touch upon the privacy concerns of employers and the unions about receiving - directly - the criminal backgrounds of their employees or applicants. This has been a surprising development given the hands-on role both the US and UK have adopted to manage their transport security regimes."

Discussions continue with DOTARS about aspects of the regime, however ASA is becoming increasingly concerned whether the collective views of industry are being heard within the Department or Government.

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DOTARS has accepted ASA's suggestion of a parallel approach to these discussions that:

* Provides an opportunity to improve the understanding of new OTS personnel to the underlying considerations that are behind the permit system (eg production, cargo and chartering scheduling), and
* Provides an opportunity to identify the areas within the existing Ministerial Guidelines that perhaps warrant clarification so as to make more certain the expectations of the system administration by DOTARS, OTS, shipper applicants and domestic operators.

The meetings are scheduled before the end of August 2005.

The intended outcome of this process is to provide a greater clarity and transparency in the Guidelines, and consequently in their administration.

ASA’s focus is to assist in providing the greatest range of shipping options at internationally competitive rates – preferably Australian controlled. In the majority of circumstances, it is the underlying Australian legislative and regulatory obligations that impede this. Rather than overturn the Ministerial Guidelines altogether, the intention is to provide greater clarity in the Guidelines so that where competitive Australian tonnage exists it is better placed to carry the domestic cargoes.

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Section 12 of the Shipping Registration Act 1981 has not met it's objective of retaining an Australian registration of ships in Australia and ASA agrees with the recommendations of a previous report that proposed that Section 12 be amended so as to remove mandatory Australian registration. ASA is working to that end.

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This anomoly appears to be an accident of wording in Section 23AG of the Income Tax Assessment Act 1936 and the ASA is working vigorously to have the situation rectified.

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The 14th Asian Shipowners Forum (ASF14) concluded this week in Sanctuary Cove, Queensland. ASF14 was hosted by the Australian Shipowners Association.

Held from the 9th to 11th of May, the meetings were attended by a record 137 delegates from the shipowner associations of Australia, China, Chinese Taipei, Hong Kong, Japan, Korea and the Federation of ASEAN Shipowners’ Associations (FASA) comprising the shipowner associations of Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

The Deputy Prime Minister and Minister for Transport & Regional Services, the Hon John Anderson MP opened ASF14 with a recorded address to the Forum delegates.

“Once again, the delegates of these shipowning nations made the Forum an outstanding success,” said David Sterrett, the Chairman of ASA and the outgoing Chairman of the Asian Shipowners Forum.

Key initiatives of ASF14 included:

• Ensuring that the valid concerns of the Asian shipowners are communicated in a forthright and articulate manner
• Urging the governments concerned to cooperate with each other and to take effective measures to ensure the security of ships navigating the Malacca and Singapore Straits,
• Concern regarding moves in a number of States such as Australia and Singapore to remove anti-trust immunities from conference arrangements,
• The application of the Basel convention to ships prior to their recycling,
• Continued shortage of well trained ships’ officers, and
• Trends towards the criminalisation of seafarers for accidental pollution from ships, as shown in the recent C-15 Bill in Canada.
“Over the past 14 years the ASF has successfully coordinated the voice of Asian shipowners and allowed their opinions and views to gain a greater prominence in world shipping” said Mr Sterrett.
“Through the work of the five standing committees the ASF has been able to provide constructive comment on matters affecting Asian shipowners.”

For the second year running representatives of the International Chamber of Shipping, Intertanko and Intercargo addressed the ASF heads of delegation and the Chairs of the five standing committees prior to the main plenary sessions. This full and frank interchange of views will assist the global shipping industry in coordinating its voice on matters of common concern.

A full copy of the Joint Statement of ASF14 can be found here . A transcript of Hon John Anderson MP’s opening address can be read here.

The Japanese Shipowners’ Association is to host the 15th Asian Shipowners Forum in Japan in May 2006.

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"ASA’s services are closely aligned with the operation of ships" says Mr Griffett, "for this reason, maritime security is a big issue for the members of ASA".

"Up until recently the issue of ship security has been more to do with a slightly different perspective on ship security. What has changed is that the safety issues surrounding being on board a ship are now about ensuring as far as possible that no-one deliberately poses a danger to the ship."

"A point worth making is that from a shipowners perspective, maritime security is about protecting a ship, its crew and its cargo from terrorist activity. If you are a shipowner, your primary concern is going to be about the security of your ship, the people who live and work in your ship and the cargo that is for the time being in your ship."

Mr Griffett points out that at a meeting in Canberra it emerged that what the government was concerned about – quite rightly – was the implication for the community of a ship being targeted whilst it was alongside or in the environs of a terminal. What the shipowner is concerned about is the ship and its crew being targeted - wherever it is.

In this environment, the costs associated with:

• Duplication of documentation
• Additional layers of bureaucracy
• Disparity of treatment between crews
• Unjustified panic by sections of the media and academia
• Ensuring that the additional pressures from security on training qualified sea-experienced staff are often lost in the interests of simply satisfying legislative obligations.

"That is a great shame," says Mr Griffett.

A complete copy of Trevor Griffett's presentation to the LLDCN Port & Maritime Security & Counter-Terrorism Summit (28 April 2005) is available HERE .

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"The circumstances of the industry and the issues that members need the Association to promote are constantly changing. The structure of the ASA secretariat is much the same as it was when the Association started in the mid-1980’s" said ASA Chief Executive, Lachlan Payne.

"It has become clear that more and more issues with which ASA deals interface with Federal government agencies" said Mr Payne. "There is a strong feeling that these issues could be more effectively promoted through an ASA office in Canberra and arrangements are in place for Trevor Griffett to spend more time in Canberra in an ASA office in that place."

Part of this restructure has seen the closure of ASA's office in Sydney and the loss of its staff from that office. "Through ASA, maritime employers have worked with Tim Green and Cheryl Luther for many years. All at ASA wish them well" said ASA Chairman David Sterrett.

The Canberra move augurs an intensified lobbying effort on the part of Australia's owners, who believe their government has largely ignored calls to reform shipping policy to allow domestic owners to compete with international rivals.

In a tongue-in-cheek reference to the government's role in issuing single voyage permits (SVPs) to foreign-registered vessels trading on Australia's coast, Mr Sterrett said: "It's as though we used an SVP to visit Canberra. Now we've decided to reflag and stay permanently."

The Federal Department of Transport, its Office of Maritime Security and the Australian Maritime Safety Authority are all based in the Australian capital.

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Mr David Sterrett, Chairman of ASA spoke to attendees about maritime policy issues in Australia, highlighting the current competitive advantages available to foreign opeartors.

Mr Sterretts World Maritime Day Breakfast speech is available here

The breakfast will launch a day of celebrations amongst the Maritime community with various events continuing around the country throughout the day.

For further information contact ASA on 03 9646 0755.

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The ASF in the short space of 13 years has provided a solid platform for the top echelons and CEOs of the Asian shipowning community to gather, deliberate and consolidate their view on issues that affect their common interest in international shipping. Between annual meetings, the ongoing hard works of the ASF are mainly attributed to the five Standing Committees, namely the Shipping Economics Review Committee, the Seafarers Committee, the Safe Navigation and Environment Committee, the Ship Insurance and Liability Committee and the Ship Recycling Committee. These five "S" committees have achieved significant progress in elevating the profile of Asian shipowners in the international shipping arena.

The Australian Shipowners Association is a member of the ASF and now holds the Chair and will be hosting the 14th Annual Meeting of the ASF in Sanctuary Cove, Queensland from 9 to 11 May 2005.

If you would like to discuss ASF sponsorship opportunities please contact the ASA secretariat on 03 9646 0755.

Major Sponsors

Conference Luncheon Sponsor

Formal Dinner Sponsor

Welcome Dinner Sponsor

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Other amendments to SOLAS entering into force at the same time include requirements for the fitting of water ingress alarms in holds, ballast and dry spaces on bulk carriers and requirements for radar transponders to be fitted in life rafts carried on ro-ro passenger ships.

Measures to enhance maritime security

The bulk of the new security measures apply to passenger ships and cargo ships of 500 gross tonnage and above, including high speed craft, mobile offshore drilling units and port facilities serving such ships, and are included the new Chapter XI-2, ‘Special measures to enhance maritime security’.

The ISPS Code contains detailed security-related mandatory requirements and non-mandatory guidelines for implementation by Governments, port authorities and shipping companies.

It is the first ever internationally agreed regulatory framework addressing the crucial issue of maritime security and represents the international maritime community’s contribution to the global resistance against terrorism.

The Code requires a flag State approved ship security plan to be drawn up for all SOLAS vessels, ships must have a designated ship security officer and each shipping company must appoint a company security officer. Similarly, port facilities are also required to have an approved security plan and to appoint a designated security officer.

The new chapter confirms the role of the master, who is not be constrained by the Company, the charterer or any other person in exercising his professional judgement over decisions necessary to maintain the security of the ship.

It also requires all ships to be provided with a ship security alert system. The ship security alert system will initiate and transmit a ship-to-shore security alert to a competent authority designated by the Administration, identifying the ship, its location and indicating that the security of the ship is under threat or has been compromised. The system will not raise any alarm on board the ship.

Other regulations in this chapter cover the provision of information to IMO, the specific responsibilities of shipping companies, and the control of ships in port, including measures relating to the delay, detention or restriction of operations including movement within the port or expulsion of a ship from port.

To improve the traceability of ships on the high seas a ship identification numbers is to be permanently marked in a visible place either on the vessel hull or superstructure. Passenger ships should carry the marking on a horizontal surface visible from the air.

A ‘Continuous Synopsis Record’ (CSR), required to be held on each ship will provide an on-board record of the history of the ship. The CSR shall be issued by the Administration and shall contain information such as the name of the ship and the State whose flag the ship is entitled to fly, the date on which the ship was registered with that State, the ship's identification number, the port at which the ship is registered and the name of the registered owner(s) and their registered address. Any changes shall be recorded in the CSR so as to provide updated and current information together with the history of the changes.

Modifications to SOLAS Chapter V (Safety of Navigation) contain a new timetable for the fitting of Automatic Information Systems (AIS). Ships, other than passenger ships and tankers, of 300 gross tonnage and above but less than 50,000 gross tonnage, are required to fit AIS by 31 December 2004.

Other amendments to SOLAS adopted in December 2002

In addition to the security-related measures, a series of other important SOLAS amendments also enter into force on 1 July 2004.

Chapter XII (Additional Safety Measures for Bulk Carriers)

Fitting of high level alarms and level monitoring systems on all bulk carriers, in order to detect water ingress.

Availability of pumping systems requires the means for draining and pumping dry space bilges and ballast tanks any part of which is located forward of the collision bulkhead to be capable of being brought into operation from a readily accessible enclosed space.

Chapter II-1 (Construction - structure, subdivision and stability, machinery and electrical installations)

Access to spaces in cargo areas of oil tankers and bulk carriers is intended to ensure that vessels can be properly inspected throughout their lifespan, by designing and building the ship to provide suitable means for access. Without adequate access, the structural condition of the vessel can deteriorate undetected and major structural failure can arise.

In Part C (Machinery Installation), a new paragraph added to regulation 31 (Machinery control) requires automation systems to be designed such that the threshold warning of impending or imminent slowdown or shutdown of the propulsion system is given in time to be able to assess navigational circumstances in an emergency.

Chapter II-2 (Fire protection, fire detection and fire extinction)

The International Maritime Dangerous Goods Code (IMDG Code) will become mandatory.

Chapter III (Life-saving appliances and arrangements)

Amendments to Regulation 26 (Additional requirements for ro-ro passenger ships) require liferafts carried on ro-ro passenger ships to be fitted with a radar transponder in the ratio of one transponder for every four liferafts.

INF Code

The amendments to the International Code for the Safe Carriage of Packaged Irradiated Nuclear Fuel, Plutonium and High-Level Radioactive Wastes on board Ships (INF Code) will reflect the mandatory nature of the IMDG Code.

Source: International Maritime Organisation

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This has been seen by sources within the ministry as an assurance to parliament that tonnage tax would be introduced soon, a commitment that must be honoured by the new government to be formed following the election in March or April. A six-member committee including officials from the ministries of finance, shipping and law has drafted a bill to implement the scheme, which will take the form of a separate schedule to the Income Tax Act. The bill cannot be introduced now as parliament is to be dissolved on 6 February as prelude to the elections.

Under the proposal, shipping companies’ tax liability will be cut from the current 30-35% corporate tax to just 1-2%. Sources said the move would keep vessels on the Indian register and encourage companies to buy new tonnage. Owners welcomed Singh’s announcement. Essar MD Sanjay Mehta agreed the move would make Indian companies competitive.

Fairplay daily news wire 4 February, 2004

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Chamber president and P&O chief executive Robert Woods welcomed Darling as “a strong supporter of our industry” and his Department for Transport as “a key ally”. But he said "the same cannot always be said of either some other UK departments or Brussels,” predicting that “there are still problems ahead.” Without going into detail, he told guests that “a good example is how the government will implement the new EU state aid guidelines. We mustn’t take anything for granted.”

Fairplay News Wire Service 27 January 2004

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Two of these amendments clarify the purpose of the Act not to include lawful advocacy, protest or industrial action, and to protect the rights, freedoms and welfare of seafarers. The former of these 2 changes is also reflected now in the definition of ‘unlawful interference in maritime transport’. One other amendment aligned the penalty provisions applying to ‘notifying revocation’ offences in s.31 of the Act.

As of 10 December, the Australian Office of Parliamentary Counsel (responsible for the actual drafting of the legislation) was yet to release the complete, amended version of the Act to the Department of Transport & Regional Services.

The Bill (not the final amended Act) can be accessed at the following web address: http://parlinfoweb.aph.gov.au/piweb/Repository/Legis/Bills/Linked/02100304.pdf

ASA has been advised that the first tranche of regulations dealing with:

Security assessments

Port security plans, port facility security plans and ship security plans

Port service provider obligations (eg some towage, pilotage, bunkering services)

Maritime security zones

Security directions and control directions

Passenger screening and clearing, and

Weapons,

will be gazetted on 23 December 2003. They will have force from that date. Updated guidance materials reflecting the first regulations are to be disseminated by DoTaRS shortly. The drafting instructions for these regulations were successfully finalised in consultation with ASA’s ship security consultative group – representatives of a number of ASA member companies – along with others.

There has been little change since July of this year in the anticipated application of the ISPS Code in Australia. To that end, the anticipated requirements regarding security assessments and plans have also changed little.

Once the regulations have been gazetted on 23 December, operators will be in a position to formally commence lodging plans with DoTaRS for approval. DoTaRS are no longer adhering to the Australian Standard for ship risk/security assessment (although it is their preferred approach). What is sought is a comprehensive and reasoned consideration of security risks that will enable a reasonable, planned management of those risks. Other approaches, such as that espoused by the US Coast Guard are acceptable.

ASA had heard that the approval process would be conducted by existing DoTaRS personnel – ie persons with no recent practical maritime/port experience. Discussions with the office of the Shadow Transport Minister, Martin Ferguson and ASA submissions to the 2 relevant Senate and House of Representatives committees reviewing maritime security appear to have pressured DoTaRS into establishing secondment opportunities with existing AMSA personnel. No further details are known at this time.

Further details regarding the introduction of the IMO International Ship & Port Facility Security Code (ISPS Code) in Australia can be obtained from Trevor Griffett at ASA on +61 3 9646 0755.

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In contrast to the situation in France described below, Australian shipowners are seeking NO fiscal assistance from the Australian government, just a minor change to Section 23AG of the Income Tax Assessment Act 1936 and to Section 12 of the Shipping Registration Act 1981.

Both amendments would contribute to employment opportunities and economic activity in Australia and neither amendment would cost the Australian government anything.

“French tonnage tax 'by end of year'

FRANCE will bring in the long-awaited tonnage tax before the end of the year following the publication of a special decree, the ministry of transport announced in Paris yesterday. "The publication of the decree means the tonnage tax is now becoming a reality," a spokesman for the transport minister said. The tax will significantly improve the competitiveness of ships operated under the French flag because companies will no longer pay taxes on their actual profits but as an annual lump sum calculated on the tonnage actually deployed. Companies opting the tonnage tax system will embark on 10-year commitments. Tonnage tax is one of three measures the French authorities will deploy to revive the merchant fleet, which has stayed at around 200 ships for a decade. The other two measures are a scheme providing attractive financing and the Registre International Français, a more competitive national flag, which will be implemented in January 2004 to replace the present second register of Kerguelen. Secretary of state for the sea and transport Dominique Bussereau belies these three measures could boost the French flag, possibly to 350 vessels.”

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The two traditional foes of the Shield, Victoria and NSW, took the oval just after midday amid a vocal contingent of supporters and players. Fittingly, Bob McKay (AMSA) umpired from the City End with David Baxendale officiating at the Southern End.

NSW won the toss and elected to bat and scored a commendable 140 runs by the end of the first session.

The top scorer for NSW was Matthew Cowell (Stolt NYK) with 30, closely followed by Andrew Miller (Stolt NYK) the NSW Captain on 28.

The best of the Victorian bowlers were Dianne McGee (ASP) and Hayden Latchford (BP) the Victorian Captain, both taking three wicket hauls. Bob Bird (ASP) was impressive in the field, holding three catches at second slip.

After drinks and in a stiffening southerly breeze, NSW took the field.

Victoria won the game with three balls to spare thanks to a brave stand by the injured Dale Emmerton (Patrick), with a total score of 159.

Top scorers for Victoria were Craig Faulkner (Adsteam) with 27 and Lachlan Payne (ASA) on 24.

Glen Pipkin (TT Line) and Greg Philpot (Adsteam) bagged two wickets each for NSW.

In presenting the winning side with the Chairman’s Shield, the ASA Chairman David Sterrett reminded those present of the long and proud history of the Shield, having been first presented by W. T. Appleton in 1903, and the shipping industry to which it belongs.

Contact: Teresa Hatch, ASA 03 9646 0755

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For more information please go to the Customs website at www.customs.gov.au

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The report is prepared annually in conjunction with leading transport consultants Apelbaum Consulting. The report has been expanded to include a comprehensive analysis of the fuel efficiency of competing transport modes.

The report shows that the cost to Australia of increasing reliance on foreign shipping to carry Australia’s cargoes continues to escalate whilst Australia’s participation in our own sea transport continues to decline due to an uncompetitive legislative environment for Australian ship operators.

For example, the annual positive contribution from Australian shipping to net services increased from $161 million in 2000/01 to $180 million in 2001/02. At the same time, the contribution from foreign shipping to the Australian net services deficit was $3.1 billion and now constitutes13.9 per cent of Australia’s current account deficit.

You can download the report here.

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No such initiatives exist in Australia – at least not since they were repealed in 1996.

The following item appeared in the Fairplay daily news wire service on Friday 31st October.

“Owners support new EU aid rules EUROPEAN shipowners have welcomed new guidelines on state aid for maritime transport unveiled by the European Commission today. The new framework, which builds on the existing regime adopted in 1997, includes more effective tax exemptions for seafarers and specific rules granting aid schemes for the launch of short sea shipping routes. Several new guidelines on tonnage tax schemes, ship management, towage and dredging have also been included in the new rules. According to a spokesman for the European Community Shipowners’ Association (ECSA), the final draft of the rules are still being analysed, however the move to create a more favourable tax environment for European shipping has been broadly welcomed by owners. “We are hoping that this will produce significant positive effects for the industry,” he told Fairplay. According to EC transport commissioner Loyola de Palacio, the new framework will “give the needed instruments for maintaining a competitive and quality EU flag”.

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The IMDO has a statutory mandate to promote growth in the Irish Shipping and related services and to attract to Ireland additional marine related service sector operations along with key players in International Shipping and ancillary services. IMDO has an excellent web site which demonstrates how a government can take initiative on maritime matters.

Ireland clearly sees that it is possible and desirable to be a shipping nation.

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The review, which was commissioned by the Australian Shipowners Association, is intended to be a blueprint for Australian shipping.

download

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Ships are painted with anti-fouling paints to protect their hulls from a build-up of marine pests and algae. This makes them faster and more fuel-efficient reducing greenhouse gas emissions. However some anti-fouling paints contain chemicals such as tributyltin (TBT) which can be harmful to the marine environment and toxic to some marine species.

Australia will soon be implementing a new international Convention that was adopted by the International Maritime Organization late last year to ban harmful anti-fouling systems globally. The Government is working with the shipping industry to test long-lasting, less toxic alternatives to TBT-based paints.

These new paints will minimise harm to the environment while still effectively protecting the hulls of vessels and preventing the potential spread of marine pests around the coast. Patches of the different brands of anti-fouling paint were painted on the hulls of four ships, the Iron Monarch, Iron Chieftain, Alltrans and the Lady Kari Ann in 2001 and 2002. The hulls are then inspected for marine growth at yearly intervals. The project aims to independently assess the effectiveness of each of the TBT free paints on trial.

Members of the Australian Shipowners Association have welcomed this opportunity to promote greater awareness of TBT-free anti-fouling paints. The ASA looks forward to the expansion of the Australian paint market to offer a broad choice of the most recent TBT-free products, thereby maximising environmental protection together with operational effectiveness.

The paint trial project will run for three years and is due to conclude in March 2004. The project has been funded through the Commonwealth Government’s $2.5 billion Natural Heritage Trust.

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Indications suggest that Justices McHugh and Hayne, who heard our application, had predetermined their position, given the tenor of early questioning from the Bench. The Court appeared comfortable with the interpretation of the Full Federal Court that 'service in a foreign country' had to be:

Service physically in a foreign, geographical place, and That place had to have a political system capable of levying taxes. The High Seas satisfies neither of these criteria. In a High Court Special Leave application you are only granted 20 minutes to convince the Court not only the legal merits of your appeal, but the public interest that justifies your matter being one of the 70 or so of the 1,000 or more applications to be made and heard each year.

Questioning from the Bench ate considerably into the time available to Terry Murphy to fully make our case, but when given the opportunity to identify why our interpretation of the relevant provision not only solved the problem at hand but:

Was consistent with the legislative history of the old provisions, Was consistent with the testing criteria of s.23AG(1) and s.23AG(2) Was consistent with the Explanatory Memorandum that introduced the 23AG amendments, and Was consistent with the 2nd Reading Speech that introduced the 23AG amendments, Justices McHugh and Hayne almost seemed to appreciate the case we were making. This is the persuasive argument that we had sought to have heard in the Full Federal Court. However, their Justices were not sufficiently moved to grant leave to appeal, and the appeal was dismissed. Further, costs were awarded against us.

This was the final avenue of legal appeal open to us on this particular matter to have the relevant provision re-interpreted. ASA will continue to press the political avenues to now amend the offending provision of the ITAA 1936.

ASA will seek to have the relevant clause amended to give effect to the intentions of the provision. The specific wording of that amendment will be fleshed out in due course. In this regard, Lachlan Payne and Trevor Griffett of ASA have already had discussions with the Minister for Transport, Martin Ferguson and the Department of Transport & Regional Services, and have made contact with the Prime Minister. The Prime Minister has sought a 3-page briefing from ASA on this matter, showing that there is some interest, presumably, to rectify the anomaly.

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In 1996 the cargo vessel "Sitka II" was at Lord Howe Island when a hydraulic hose ruptured on the ship's crane, causing 5 litres of oil to discharge into the water. The hose ruptured due to the normal movement of the crane. Both the owner and master were unsuccessfully prosecuted under NSW MARPOL legislation in the NSW Land and Environment Court and again on appeal. The case is now going to the High Court of Australia.

The owner and master escaped liability based on a "wear and tear" defence. MARPOL legislation has a defence of "damage" to the ship. The owner said the broken hose was "damage", regardless of how it occurred. The authorities unsuccessfully argued that "damage" should be confined to accidental damage.

Under the MARPOL Convention and MARPOL legislation, the "damage" defence is not available if damage is caused "recklessly and with knowledge that damage would probably result". The NSW authorities further argued that the defendants were "reckless", and therefore not able to use the "damage" defence. The Courts disagreed and said the crane had only been installed for 6 months, therefore it was reasonable to assume that it would operate without mishap. The

Courts considered that the relevant test was to determine if what the owner or master did themselves was reckless, not what the "prudent" owner or master would have done.

Although the "Sitka II" case is being appealed by the NSW authorities, the Commonwealth has already amended its MARPOL legislation, which was the same as the State legislation under consideration in the "Sitka II". The amended Commonwealth legislation now excludes the "damage" defence, if damage arose as a result of negligence of the master or owner of the ship. This is an odd and far-reaching way of approaching the notion of intentional and reckless damage contained in the MARPOL Convention. This change will leave shipowners and masters exposed to greater risk of liability in cases of collision and grounding.

Furthermore, deterioration resulting from failure to maintain a ship, and even defects that develop during the normal operation of the ship, are now excluded from the "damage" defence. This would seem particularly harsh where latent defects are involved.

If the States follow the Commonwealth's lead and make the same amendments, then this will considerably broaden the reach of Australia's marine pollution laws.

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