Page 104: of Maritime Reporter Magazine (October 1997)

AUSTRALIAN MARITIME UPDATE

Dominance From Down Under

Australian maritime companies have built a dominant position in the world as suppliers for and builders of technologically advanced fast ferries. The following pages encapsulate recent business trends and happen- ings which have shaped and will continue to shape the

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Major Reforms Cause Storm In Australian Shipping

The Australian shipping industry is experiencing turmoil as the release of a report from federal government-commissioned task force Shipping Reform Group has moved major reforms, intended to prune shipping costs by $116 mil- lion a year, a step closer to being realized. The report recommends that cabotage be phased out during an 18-month period, allowing for- eign vessels to compete with

Australian ships carrying domestic cargo along the Australian coast.

The task force proposals also call for Australian ships to be allowed to employ cheaper foreign crews, a move that, if pursued, will likely be met with strong resistance from the maritime union. Seafarers on

Australia's coastal shipping routes would also be made to work 31 weeks a year, not the present 27.

In return for compliance, and to help it adjust, the shipping indus- try would be offered tax incentives.

Austal's 196.8-ft. (60-m) Auto Express high-capacity catamaran for Turkey's Istanbul

Deniz Otobusleri.

Both the foremost union body in

Australia, the ACTU, and the

Maritime Union of Australia, have rejected the report.

According to Transport Minister

John Sharp, who anticipates a rapid decline in Australia's ship- ping industry if reforms are not made, cargo rates for Australian ships were almost one-third higher than for foreign ships.

The report has also flagged a sec- ond shipping register to encourage more ships to register under the

Australian flag. Both Australian and foreign crews could use the second register, which would be controlled by Australian man- agers, masters and chief engineers, that would offer tax incentives and more flexible labor arrangements than the existing register. But if the Australian crew failed to deliv- er cost savings, ships would be per- mitted to hire foreign crews.

The report, put together by busi- ness and industry leaders, indicat- ed reform could cut costs by more than 25 percent. Using foreign crews could save a company sub-

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