Government set for fight with Labor, unions over plans to cut Australian shipping costs

Updated

The Abbott Government will today unveil controversial new plans to cut the costs of Australian shipping, in a move that will put it on a collision course with Labor and major unions.

It intends to introduce a new "streamlined" permit system to allow foreign and Australian-flagged ships to carry goods and passengers on unlimited voyages over a 12-month period.

As part of the changes, foreign-flagged ships will be able to avoid paying Australian wages and conditions, so long as they are only trading in the nation's waters for 183 days or less.

The Government argues its overhaul of coastal shipping will make the industry much more competitive and take large numbers of trucks off highways.

"It is cheaper to ship sugar from Thailand to Australia than it is to ship Australian sugar around our own coastline," Deputy Prime Minister Warren Truss will say in a speech today.

"We rely on maritime transport for 99 per cent of our exports.

"I put it to you that the ships are here, so why don't we make better use of the shipping routes lapping our coast?"

Many of the changes the Government is proposing would wind back measures introduced under Labor.

The Coalition argues the industry is drowning in red tape and claims the biggest changes would not be in workers' wages but some conditions.

It hopes to introduce new legislation in the winter sittings of parliament.

Mr Truss will insist Australian jobs will still be protected and the economy and consumers will be better off in the long-run.

"If you have an underutilised resource, you should maximise its utility," he will say today.

"Importantly, all ships will still have to meet Australia's strict maritime safety and environmental provisions."

The cruise industry will also be included in the new permit system and the Deputy Prime Minister hopes that will lead to more ships being repaired in Australia, rather than Singapore.

Labor claims changes are 'WorkChoices on water'

But the Opposition claims the Government wants to introduce "WorkChoices on water" and will "reduce wages and conditions of maritime workers".

In a statement released overnight, Labor's transport spokesman Anthony Albanese said he was worried because "many shipping countries base their ships in third-world nations to minimise their pay levels and working conditions".

He said the Government's plans would drag down wages on Australian-flagged vessels.

"If an Australian company seeks to move freight on a road or railway line, the truck drivers or railway workers involved are paid in accordance with Australian standards," he said.

"Conditions should be the same for the movement of sea freight."

The Maritime Union of Australia has been campaigning fiercely against any changes to coastal shipping and is almost certain to fight the Government's plans.

Topics: sea-transport, trade, industry, australia

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