Andrew Nikolic (Bass, Liberal Party) Share this | Link to this | Hansard source

My question is to the Acting Prime Minister and Minister for Infrastructure and Regional Development. Will the minister update the House on how changes to the coastal shipping regulations will boost Australian jobs and ensure sustainability of the sector into the future?

Warren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

I thank the honourable member for his question. I recognise what a key issue shipping freight rates and shipping services are for Tasmania. I advise the House that today is World Maritime Day, so it is appropriate that we draw attention to the importance of the shipping industry. If there are representatives of the shipping industry in the gallery, we welcome them particularly on their day, World Maritime Day. It is an opportunity to recognise how important shipping is for an island continent like Australia. We depend so much on having services available at an economic rate to be able to get our exports to the marks of the world and, of course, to import the consumer goods that we so often need.

Unfortunately, over recent times the Australian shipping industry, particularly at a domestic level, has fallen behind. Our domestic shipping industry is losing market share; it is declining in size. Indeed, the deadweight tonnage of the Australian shipping fleet has fallen by 64 per cent over the two years since Labor introduced its so-called shipping reform. Once more, domestic shipping is declining on average about 2.4 per cent each year. At a time when our freight task as a nation is growing, our shipping sector is losing market share and is declining. The current protectionist regulations are burdensome and clearly ineffective.

Tasmanians feel this very strongly, as an island state. I was interested to read a letter from the Launceston Chamber of Commerce in which they pointed out the particular disadvantages in Tasmania. They said:

… Launceston and Northern Tasmania has suffered considerably from increased costs and timeliness for exports and imports of freight as a result of the enacting of the Coastal Shipping Legislation.

Labor's legislation has hurt northern Tasmania. They go on to say:

… this regulation does not serve Tasmania well: it is reducing our capacity to increase investment to the State; nor has the Australian Shipping Industry grown as a consequence of this regulation.

This is a classic case of legislation gone wrong. Legislation that was billed as trying to reform and revitalise the Australian shipping industry has resulted in lost market share, fewer ships available on the Australian shipping register and, indeed, greater costs to Australian industry seeking to move their product around the coast.