EXPLANATORY STATEMENT
Select Legislative Instrument 2010 No. 40
Issued under the authority of the Minister for Infrastructure, Transport, Regional Development and Local Government
Protection of the Sea (Shipping Levy) Act 1981
Protection of the Sea (Shipping Levy) Amendment Regulations 2010 (No. 1)
Section 9 of the Protection of the Sea (Shipping Levy) Act 1981 (the Act) provides that the Governor-General may make regulations for the purposes of sections 6 and 7 of the Act. Section 6 of the Act enables the regulations to prescribe the rate of levy and section 7 enables the regulations to prescribe a minimum amount of levy payable for a ship for a quarter.
The Act imposes a quarterly levy on ships of 24 metres or more in length and having on board a quantity of 10 tonnes or more of oil in bulk as fuel or cargo. The rate of levy is currently prescribed in the Protection of the Sea (Shipping Levy) Regulations 1982 (the Principal Regulations) for the purposes of section 6 of the Act. Previously a quarterly levy of 11.25 cents per ton of the tonnage of a ship was imposed.
The amending Regulations amend the Principal Regulations to increase the quarterly levy to 14.25 cents per ton on all ships to which the Act applies, effective from 1 April 2010. The minimum levy prescribed in the Principal Regulations for the purposes of section 7 of the Act remains at its current level of $10.
The levy is payable once in every quarter that a ship to which the Act applies is in an Australian port. The levy is used to fund the operations and management of the National Plan to Combat Pollution of the Sea by Oil and other Noxious and Hazardous Substances (the National Plan). Since 1 July 2007, the levy has also been used to fund the National Maritime Emergency Response Arrangements.
The National Plan has incurred costs as a result of the fuel oil spill from the Pacific Adventurer incident off Queensland in March 2009. The increase in the levy will be used to fund the expected shortfall in the actual clean-up costs that were not able to be recovered from the shipowner. The increase is expected to raise revenues of approximately $4.5 million per annum.
The amending Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation was held at the Australian Maritime Safety Authority (AMSA) Advisory Committee meeting in October 2009. There was no objection to the proposed increase from the Advisory Committee. The members of the AMSA Advisory Committee represent a broad cross-section of the Australian shipping industry.
The amending Regulations commence on 1 April 2010.
Overview
The Protection of the Sea (Shipping Levy) Amendment Regulations 2010 (No. 1) were enacted to address a financial shortfall in the National Plan to Combat Pollution of the Sea by Oil and other Noxious and Hazardous Substances, arising from the Pacific Adventurer incident in March 2009. This legislative instrument was issued under the authority of the Minister for Infrastructure, Transport, Regional Development and Local Government, and follows consultation with the Australian Maritime Safety Authority (AMSA) Advisory Committee, which expressed no objections to the proposed changes. The primary policy objective of these regulations is to ensure sufficient funding for the management and operational costs associated with the National Plan, as well as the National Maritime Emergency Response Arrangements, by increasing the quarterly shipping levy from 11.25 cents per ton to 14.25 cents per ton, effective from 1 April 20010.
Scope and Application
The Protection of the Sea (Shipping Levy) Amendment Regulations 2010 (No. 1) apply to ships of 24 metres or more in length carrying 10 tonnes or more of oil in bulk as fuel or cargo, imposing a quarterly levy to fund the operations and management of the National Plan to Combat Pollution of the Sea by Oil and other Noxious and Hazardous Substances. This legislation, which amends the Protection of the Sea (Shipping Levy) Regulations 1982, increases the levy rate from 11.25 cents to 14.25 cents per ton effective from 1 April 2010, and is designed to address the shortfall in clean-up costs arising from incidents such as the Pacific Adventurer fuel oil spill. The minimum quarterly levy remains at $10. This levy is applicable whenever such ships are in an Australian port and the collected funds also support the National Maritime Emergency Response Arrangements. The regulations are a legislative instrument under the Legislative Instruments Act 2003 and were not opposed following consultation with the Australian Maritime Safety Authority Advisory Committee.
Key Provisions
The Protection of the Sea (Shipping Levy) Amendment Regulations 2010 (No. 1) make changes to the existing regulations under the Protection of the Sea (Shipping Levy) Act 1981. The primary amendment is to the rate of the shipping levy, which is outlined in Section 6 of the Act. Previously, the quarterly levy was set at 11.25 cents per ton of a ship’s tonnage, but these regulations increase this rate to 14.25 cents per ton, effective from 1 April 2010. The minimum amount of levy payable for a ship for a quarter, as prescribed in Section 7 of the Act, remains unchanged at $10. This levy applies to ships that are 24 metres or more in length and carry 10 tonnes or more of oil in bulk as fuel or cargo.
These regulations impose obligations on ship owners and operators who fall within the purview of the Act. They must ensure that the quarterly levy is calculated based on the new rate and paid for each quarter their ship is in an Australian port. This levy is intended to support the operations and management of the National Plan to Combat Pollution of the Sea by Oil and other Noxious and Hazardous Substances, as well as the National Maritime Emergency Response Arrangements. The increase in the levy rate responds to the costs incurred from the Pacific Adventurer incident in March 2009, where the actual clean-up costs exceeded the available funds.
Failure to comply with the new levy requirements can result in civil and criminal consequences. While the specific penalties for non-compliance are not detailed in the explanatory statement, the Act and its regulations provide for enforcement mechanisms to ensure adherence. Typically, non-compliance with shipping regulations can lead to fines, and in severe cases, criminal charges could be pursued against the ship owners or operators. The Australian Maritime Safety Authority (AMSA) is responsible for overseeing the implementation and enforcement of these regulations, ensuring that the necessary funds are raised to cover the costs associated with maritime pollution and emergencies.
The amendments to the regulations were made following consultation with the AMSA Advisory Committee, which represents a wide range of interests within the Australian shipping industry. No objections were raised during the October 2009 meeting, indicating broad acceptance of the proposed changes. These amendments are designed to address the financial shortfalls caused by the Pacific Adventurer incident and ensure that sufficient funds are available for future maritime pollution incidents and emergency response activities.