EXPLANATORY STATEMENT
Issued by the authority of
the Minister for Infrastructure, Transport, Regional Development and Local Government
Navigation Act 1912
DIRECTION UNDER SUBSECTION 421(1)
Part VI of the Navigation Act 1912 (the Act) provides for the granting of permits and licences for ships to engage in the domestic coasting trade of Australia. Section 7 of the Act deems a ship to be engaging in the coasting trade where, except in defined circumstances, the ship “takes on board passengers or cargo at any port in a State, or a Territory, to be carried to, and landed or delivered at, any other port in the same State or Territory or in any other State or other such Territory”.
Subsection 421(1) of the Act provides that the Minister may direct that a class of ships is exempt from provisions of the Act.
Shipping between Christmas Island and other states and territories was granted an exemption from Part VI of the Act in 1998 by the former Minister for Workplace Relations and Small Business, the Hon Peter Reith MP, on the basis that:
- It allowed Christmas Island Phosphates to access shipping services at competitive freight rates; and
- It removed an anomaly whereby Christmas Island was the only Commonwealth island territory without an exemption.
The exemption has been renewed by successive Ministers on a three year basis since the first exemption expired on 7 April 2007.
The supply of shipping services to meet the needs of Christmas Island has not changed significantly since 2007. The island’s position away from the main trading routes results in limited appeal for shipping companies to meet the island’s needs. Exemption from the licence and permit system provides greater flexibility in meeting the island’s shipping requirements.
Subsection 421(2) of the Act provides that the exemption must be granted for a specified period. Subsections 421(6) and 421(7) provide that before making a direction under s421(1) the Minister must be satisfied that:
- The direction would not be inconsistent with an obligation of Australia under an international agreement; and
- The direction would not jeopardise the safety of a ship or persons on board a ship.
There is nothing to suggest that a continuation of the current exemption would violate either of these provisions.
The Direction is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation external to the Australian Government is unnecessary as the Direction is of a minor or machinery nature and does not alter existing arrangements.
The Direction commences on 8 April 2010 and remains in force until 7 April 2013.