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October 24, 2008 - 10:18AM
Australia's struggling shipping industry may have a lifeline thanks to new recommendations from a parliamentary committee.
There are only about 40 commercial ships left flying the Australian flag.
The number has been in free fall for a decade and without government intervention the decline appears terminal. But recommendations from a parliamentary committee this week could provide salvation.
Following the brutal waterside fight between former prime minister John Howard, his industrial relations minister Peter Reith and the unions, the shipping industry was left to die.
With Labor back in town the industry is looking for a kickstart.
It has been given one by the committee's report which recommends major legislative changes to the way shipping is taxed and the creation of a National Maritime Training Authority.
While Transport Minister Anthony Albanese has not committed the government to adopting any of the committee's recommendations, Labor's intentions are clear.
Earlier this year Albanese called for the profile of the industry to be raised.
"The government's aim is for a viable coastal shipping industry in a competitive domestic transport sector," he said in a speech to industry leaders in June.
Albanese was more guarded following the committee's findings.
"The government will now consider the report's recommendations in detail and respond to each of them during 2009," he said.
One of those recommendations is for the introduction of a tonnage tax.
The tax would be optional, but likely popular because it would allow companies to calculate tax on their tonnage rather than their profit.
"Recently, ships have been highly profitable, so a tonnage tax regime is considered to be of particular economic benefit," the committee wrote.
Similar taxes are in place in Britain, Belgium, Germany, Greece, Norway and Denmark.
Committee chair and Labor backbencher Catherine King said the chief inspiration had come from the UK, where the tax was successful in increasing the number of British registered ships.
The tax has support across the industry. Both the Maritime Union of Australia (MUA) and the Australian Shipowners Association (ASA) back the plan.
There is just one catch for companies who want to take advantage of the flat tax rate - they have to train new staff.
"The (staff) shortage has been described as reaching a critical point and is undoubtedly the biggest issue facing the industry today," the committee found.
Just one per cent of local seafarers are 21 or under and by 2010 the ASA says the industry will be 2,000 staff short, further adding to bulging capacity constraints across the wider transport sector.
Paddy Crumlin is the national secretary of the MUA and sees the committee's findings as a lifeline for both an industry and a way of life.
"If intelligently developed and implemented the policies and regulatory proposals in the report provide the basis for Australia to become a regional centre for maritime trade and training in the Asia Pacific region," Crumlin said.
The union veteran may just get his way.
Australia's struggling shipping industry may have a lifeline thanks to new recommendations from a parliamentary committee.
There are only about 40 commercial ships left flying the Australian flag.
The number has been in free fall for a decade and without government intervention the decline appears terminal. But recommendations from a parliamentary committee this week could provide salvation.
Following the brutal waterside fight between former prime minister John Howard, his industrial relations minister Peter Reith and the unions, the shipping industry was left to die.
With Labor back in town the industry is looking for a kickstart.
It has been given one by the committee's report which recommends major legislative changes to the way shipping is taxed and the creation of a National Maritime Training Authority.
While Transport Minister Anthony Albanese has not committed the government to adopting any of the committee's recommendations, Labor's intentions are clear.
Earlier this year Albanese called for the profile of the industry to be raised.
"The government's aim is for a viable coastal shipping industry in a competitive domestic transport sector," he said in a speech to industry leaders in June.
Albanese was more guarded following the committee's findings.
"The government will now consider the report's recommendations in detail and respond to each of them during 2009," he said.
One of those recommendations is for the introduction of a tonnage tax.
The tax would be optional, but likely popular because it would allow companies to calculate tax on their tonnage rather than their profit.
"Recently, ships have been highly profitable, so a tonnage tax regime is considered to be of particular economic benefit," the committee wrote.
Similar taxes are in place in Britain, Belgium, Germany, Greece, Norway and Denmark.
Committee chair and Labor backbencher Catherine King said the chief inspiration had come from the UK, where the tax was successful in increasing the number of British registered ships.
The tax has support across the industry. Both the Maritime Union of Australia (MUA) and the Australian Shipowners Association (ASA) back the plan.
There is just one catch for companies who want to take advantage of the flat tax rate - they have to train new staff.
"The (staff) shortage has been described as reaching a critical point and is undoubtedly the biggest issue facing the industry today," the committee found.
Just one per cent of local seafarers are 21 or under and by 2010 the ASA says the industry will be 2,000 staff short, further adding to bulging capacity constraints across the wider transport sector.
Paddy Crumlin is the national secretary of the MUA and sees the committee's findings as a lifeline for both an industry and a way of life.
"If intelligently developed and implemented the policies and regulatory proposals in the report provide the basis for Australia to become a regional centre for maritime trade and training in the Asia Pacific region," Crumlin said.
The union veteran may just get his way.
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