“AUSTRALIA has a maritime vulnerability,” Deputy Prime Minister Barnaby Joyce said in announcing the Coalition’s plans to increase Australia’s “sovereign maritime capability” if re-elected.
“We are a nation that is surrounded by sea,” Mr Joyce said.
“If you can stop imports and exports into Australia, you can stop Australia. We must regain sovereignty in this space and give priority to Australian seafarers.”
Mr Joyce said during the COVID-19 pandemic and the damage to vital supply chains due to weather events has highlighted “the importance of Australia maintaining a strong sovereign capability in merchant shipping”.
“The Coalition will make it less burdensome and more commercially viable for ship owners to choose Australia and we will take action quickly, in direct contrast to Labor’s plan to establish another taskforce and review the situation, with no clear plan in place and no timeframe in sight,” he said.
“The Coalition Government will create the right environment for our sovereign maritime capacity to expand, including addressing uncompetitive tax settings that make it uncommercial and too expensive for ship owners to own Australian ships and employ Australian seafarers.
In a media statement, the Coalition said it would:
- Review Australia’s tax arrangements for Australian ship-owners to ensure they can compete on an even footing with foreign ship-owners. This will include assessing the current income tax exemptions for companies and seafarers and exploring changes that will promote Australia’s sovereign merchant capacity.
- Put arrangements in place to encourage Australian ship owners to look to our regional neighbours for workers to complement the Australian workforce.
- Implement changes to the Coastal Trading Act to remove red tape and increase the speed with which ship owners can service Australia.
Deputy Prime Minister Barnaby Joyce said he had consulted with the maritime industry and that the industry was “overwhelmingly supportive” of the proposed measures which were a “win-win for both Australians and industry”.
“This plan will not only offer supply chain security, but also a significant economic benefit for Australia with more maritime employment and training opportunities to build the capability of Australians across the maritime industry workforce,” Mr Joyce said.
“These measures will help address a significant shortfall in work opportunities currently available on Australian vessels for Australian seafarers to fulfil their sea time requirements for initial training and ongoing experience and career progression.”
Mr Joyce said Australia cannot contract its way into securing shipping capability – only sovereign shipping can achieve this.
“This policy will have significant benefits for industry and for the sovereignty and security of our nation.”
Maritime Industry Australia welcomed the Deputy Prime Minister’s announcement.
MIAL CEO Teresa Lloyd said the Coalition’s commitment to arrest the decline of Australian flagged ships signals just how vital the industry is to our national security.
“For several years, we have been calling on both major parties to expand Australia’s commercial fleet above critical levels to ensure our country can receive critical supplies such as fuel and medicine,” Ms Lloyd said.
“In absence of having our own ships, we have come to rely heavily on overseas ships who are ultimately beholden to countries they are owned by. While we will always use foreign ships, we must also gain a foothold in the international commercial shipping sector.
“That’s why we need Australian flagged ships and that’s why today’s announcement by the Coalition is significant for our country, our security and our future.”
Ms Lloyd said for first time in Australian shipping history, we now have bi-partisan support on adjusting tax settings equal to those in other countries which will mean a level playing field for Australian ship owners.
“This finally makes it commercially viable for local ship owners to own and operate Australian flagged ships. It means more jobs, a stronger economy, and a safer Australia,” Ms Lloyd said.
“The changes announced are equally beneficial for both the primary and international shipping registers. This combination is critical for a country like Australia who is utterly reliant on maritime trade. Maximising the number of Australian ships is in our national interest to ensure we survive and thrive.”
Ms Lloyd said the announcement gives the industry the certainty and confidence to rebuild the domestic fleet, which has fallen to just 13 commercial vessels.
“Securing our maritime domain means investing in our defence capability and also means an investment in building our sovereign commercial shipping capability,” Ms Lloyd said.
“With commitment now from the Coalition and ALP, we have the assurance that the commercial maritime industry is considered vital within our national security construct, and we will now have a level of self-reliance, and assurance that has declined over previous decades.”
“This major step in the right direction will benefit everyone and ensure our national security is protected. We look forward to immediate action post May 21,” Ms Lloyd said.
