EXPLANATORY STATEMENT
Shipping Registration Act 1981
Australian International Shipping Register
(Minimum Compensation) Determination 2012
Subsection 61AM(2) of the Shipping Registration Act 1981 (the Act) provides that the Minister must, by legislative instrument, determine the amount of compensation for the death or long-term disability suffered by a seafarer as a result of sickness or injury occurring while on board ships registered in the Australian International Shipping Register (the International Register).
Purpose
The purpose of the Australian International Shipping Register (Minimum Compensation) Determination 2012 (the Determination) is to set out the minimum amount of compensation for the death or long-term disability suffered by a seafarer as a result of sickness or injury occurring while on board a ship.
Background
One of the commitments the Government made in establishing the International Register was that it would include workers’ compensation arrangements consistent with the International Labour Organization’s Maritime Labour Convention 2006 (the MLC). Standard A.42 of the MLC provides that ship owners shall provide financial security to assure compensation in the event of the death or long-term disability of seafarers due to an occupational injury, illness or hazard.
This requirement is reflected in section 61AM of the Act. Subsection 61AM(1) of the Act requires the owner of a ship that is registered in the International Register to have a policy of insurance or indemnity that insures or indemnifies the owner for any liability of the owner to pay compensation for the death or long-term disability suffered by a seafarer as a result of sickness or injury occurring while on board the ship. This subsection further provides that the level of insurance must be sufficient to cover the amount of compensation that is determined by the Minister under subsection 61AM(2).
In turn, subsection 61AM(3) provides that the amount of compensation determined by the Minister must not be less than the amount of compensation specified in the International Transport Workers’ Federation Uniform Total Crew Cost Collective Agreement (the ITF Agreement). The amounts of compensation for the death or long-term disability of a seafarer specified in the Determination are the same as those in the ITF Agreement at the time of making the Determination.
Details of the Determination are in the Attachment.
Consultation
No formal consultation was undertaken specifically in relation to this Determination. However, extensive stakeholder consultations were undertaken in relation to the amendments to the Shipping Registration Act 1981 that created the International Register, including in relation to section 61AM, which is about compulsory insurance for death or long-term disability.
This Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Determination commences on 1 July 2012.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Australian International Shipping Register (Minimum Compensation) Determination 2012
The Determination is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Determination
The Determination sets out the minimum amount of compensation for the death or long-term disability suffered by a seafarer as a result of sickness or injury occurring while on board a ship registered in the Australian International Shipping Register (the International Register). This is a requirement under subsection 61AM(2) of the Shipping Registration Act 1981.
Human rights implications
Article 7 of the International Covenant on Economic, Social and Cultural Rights protects the right of workers to the enjoyment of just and favourable conditions of work. This includes fair wages, equal remuneration for work of equal value, safe and healthy working conditions, equal opportunity in promotion, and rest, leisure and reasonable limitation of working hours and periodic holidays with pay, as well as remuneration for public holidays.
The Determination protects the right of workers to just and favourable conditions of work. In the absence of this Determination, there would be no minimum safety net for the amount of insurance or indemnity a ship owner is required to have to assure compensation is payable in respect of the death or long-term disability suffered by seafarers as a result of sickness or injury occurring while on board a ship registered in the International Register.
Conclusion
The Determination is compatible with human rights because it is part of a legislative framework that protects the human rights of seafarers on International Register ships.
Minister for Infrastructure and Transport, the Hon Anthony Albanese MP
ATTACHMENT
Details of the Australian International Shipping Register (Minimum Compensation) Determination 2012
Section 1 – Name of Determination
Section 1 provides that the name of the Determination is the Australian International Shipping Register (Minimum Compensation) Determination 2012.
Section 2 – Legislative Instrument
Section 2 provides that the Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Section 3 – Commencement
Section 3 provides that the Determination commences on 1 July 2012.
Section 4 – Definitions
Section 4 defines terms used in the Determination.
Section 5 – Object
Section 5 outlines the requirements in the Shipping Registration Act 1981 relating to determining the amount of compensation for death and long-term disability and states that the object of the Determination is to set out the minimum amount of compensation for the death or long-term disability suffered by a seafarer as a result of sickness or injury occurring while on board a ship registered in the Australian International Shipping Register.
Section 6 – Amount of compensation for death 2012
Section 6 provides that the amount of compensation payable to a seafarer’s immediate next of kin, for the period 1 July 2012 to 31 December 2012, in respect of the death of that seafarer as a result of sickness or injury occurring while on board a ship is the amount specified in column 1 of Schedule 1 to the Determination. This section also provides that the amount of compensation payable to each of the seafarer’s dependent children under the age of 18 (up to a maximum of 4), for the period 1 July 2012 to 31 December 2012, is specified in column 2 of Schedule 1.
Section 7 – Amount of compensation for long-term disability 2012
Section 7 provides that the amount of compensation, for the period 1 July 2012 to 31 December 2012, in respect of a seafarer who has suffered long-term disability as a result of sickness or injury occurring while on board a ship is the corresponding amount specified in column 3 for the degree of disability specified in column 2 for the class of seafarer specified in column 1 of Schedule 2 to the Determination.
Section 8 – Amount of compensation for death 2013
Section 8 provides that the amount of compensation payable to a seafarer’s immediate next of kin, for the period 1 January 2013 to 31 December 2013, in respect of the death of that seafarer as a result of sickness or injury occurring while on board a ship is the amount specified in column 1 of Schedule 3 to the Determination. This section also provides that the amount of compensation payable to each of the seafarer’s dependent children under the age of 18 (up to a maximum of 4), for the period 1 January 2013 to 31 December 2013, is specified in column 2 of Schedule 3.
Section 9 – Amount of compensation for long-term disability 2013
Section 9 provides that the amount of compensation, for the period 1 January 2013 to 31 December 2013, in respect of a seafarer who has suffered long-term disability as a result of sickness or injury occurring while on board a ship is the corresponding amount specified in column 3 for the degree of disability specified in column 2 for the class of seafarer specified in column 1 of Schedule 4 to the Determination.
Section 10 – Amount of compensation for death 2014
Section 10 provides that the amount of compensation payable to a seafarer’s immediate next of kin, for the period 1 January 2014 to 31 December 2014, in respect of the death of that seafarer as a result of sickness or injury occurring while on board a ship is the amount specified in column 1 of Schedule 5 to the Determination. This section also provides that the amount of compensation payable to each of the seafarer’s dependent children under the age of 18 (up to a maximum of 4), for the period 1 January 2014 to 31 December 2014, is specified in column 2 of Schedule 5.
Section 11 – Amount of compensation for long-term disability 2014
Section 11 provides that the amount of compensation, for the period 1 January 2014 to 31 December 2014, in respect of a seafarer who has suffered long-term disability as a result of sickness or injury occurring while on board a ship is the corresponding amount specified in column 3 for the degree of disability specified in column 2 for the class of seafarer specified in column 1 of Schedule 6 to the Determination.
Section 12 – ITF template agreement
Section 12 provides that the amounts of compensation specified in Schedules 1, 2, 3, 4, 5 and 6 to the Determination are expressed in US dollars, and are not less than the amounts of compensation specified in the International Transport Workers’ Federation Uniform Total Crew Cost Collective Agreement.