House debates

Thursday, 25 September 2014

Constituency Statements

Fremantle Electorate: Maritime Industry Reform

9:54 am

Photo of Melissa ParkeMelissa Parke (Fremantle, Australian Labor Party, Shadow Assistant Minister for Health) Share this | | Hansard source

The electorate I represent has an incredibly rich and significant maritime history. Fremantle is a working port, is the largest general cargo harbour in WA and home to the largest branch of the Maritime Union of Australia. Fremantle continues to be home to a significant fishing fleet and an incredibly precious fishing culture. A short distance south, along the coast in Henderson, the Australian Marine Complex is a diverse and highly developed centre for shipbuilding, related manufacturing work and maintenance. The work at the AMC encompasses critical defence projects, including maintenance of the Collins class submarines. I am profoundly concerned that the government has introduced so much uncertainty around the future of that genre of work and those jobs.

The former Labor government introduced a number of measures and made a range of investments designed to strengthen Australia's coastal shipping, port operations, and shipbuilding. We introduced reforms to encourage the operation of Australian flag vessels, especially for the purpose of coastal shipping, and we enabled the ratification of the International Labour Organization's Maritime Labour Convention, providing greater workplace protection and compliance for all seafarers that visit Australian ports.

All these important reforms, under the umbrella of the National Ports Strategy, were pursued in the name of revitalising Australian shipping, which of course is a vital contributor to our economic wellbeing, our trade and our security. I know that my constituents will be concerned that the Abbott government is now planning to abolish the seafarer tax offset, an initiative that offered tax breaks for companies that hire Australian seafarers to work on international voyages—the point being to improve the competitiveness of Australian operated ships. This measure was part of a package of shipping reforms delivered in 2012 after extensive consultation with industry, so it is no surprise that the Australian Shipowners Association has responded to the government's proposal with the following statement:

The Seafarers Tax Offset was a key element of the 2012 reforms which help to reduce the operating costs of Australian vessels, increase the competitiveness of Australian shipping and provide significant opportunity for employment of Australians in international trades … the impact [of abolition] is severe with regard to future opportunity …

As was eloquently expressed by my colleague, the member for Grayndler yesterday, the government has, in presenting this measure as a reduction of the costs of business, demonstrated the depths of its ignorance. This offset is not a benefit to workers, but rather for employers. It is a rebate for business, designed to level the playing field between the Australian shipping industry and the foreign shipping industry. It should go without saying that in an island nation like Australia shipping and maritime industries are of particular importance. More than 95 per cent of our exports go by sea, a huge proportion of our imports come by sea, and our coastal and international passenger and freight transport and our security is dependant on the health and good management of Australian shipping. I was proud to be part of a Labor government that set out an unprecedented reform program in this area under the excellent guidance of the member for Grayndler as minister, and I am very disappointed and concerned on behalf of my community in Fremantle to see the Abbott government intent on undoing that good work.