EXPLANATORY STATEMENT
Subject – Coastal Trading (Revitalising Australian Shipping) Act 2012
Section 11 exemption for voyages between Norfolk Island and Australian states and territories
The Coastal Trading (Revitalising Australian Shipping) Act 2012 (the Act) regulates coastal trading by providing for licences to be granted to authorise vessels to engage in coastal trading, as defined in section 7 of the Act. A vessel is engaged in coastal trading if the vessel, for or in connection with a commercial activity, takes on board passengers or cargo and carries the passengers or cargo:
- From a port in a state or territory to another port in another state or territory;
- From a port in a state or territory to another port in the same state or territory and continues to carry the passengers or cargo to a port in another state or territory;
- From a port in a state or territory to another port in the same state or territory (an intra-state voyage) and the vessel is declared by the Minister under section 12 to be subject to the requirements of the Act.
Using a vessel to engage in coastal trading without a licence may lead to a pecuniary penalty for the contravention of a civil penalty provision.
Section 11 of the Act allows the Minister to direct that the Act does not apply to a vessel or class of vessels; or to a person or class of persons. An exemption under section 11 may be confined to one or more specific periods or voyages. The Act provides that the Minister’s direction to exempt is a legislative instrument.
The legislative instrument directs that the Act does not apply to vessels undertaking any voyage for the carriage of cargo or passengers between Norfolk Island and any port in the Commonwealth or in the Territories, but not including any voyage in the course of which a vessel takes on cargo or passengers from any port in the Commonwealth or in the Territories other than a port in Norfolk Island for unloading or disembarking at another such port.
This exemption continues a longstanding exemption provided under subsection 421(1) of the Navigation Act 1912 (the Navigation Act). The exemption remains unchanged from that provided under the Navigation Act.
The exemption is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation external to the Australian Government is unnecessary as the exemption is of a minor or machinery nature and does not alter existing arrangements.
The exemption commences on 8 April 2018 and remains in force until 7 April 2023.
Authority: Section 11 of the Coastal Trading (Revitalising Australian Shipping) Act 2012
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Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Coastal Trading (Revitalising Australian Shipping) Act 2012 – Exemption under section 11 relating to voyages between Norfolk Island and Australian States and Territories
The legislative instrument 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 Legislative Instrument
The Coastal Trading (Revitalising Australian Shipping) Act 2012 (the Act) regulates coastal trading between States and Territories within Australia by requiring the movement of cargo and/or passengers, for or in connection with a commercial activity, to be conducted by vessels authorised to do so by a licence issued under the Act.
The object of the Act is to provide a regulatory framework for coastal trading in Australia that, inter alia, promotes a viable shipping industry that contributes to the broader Australian economy.
The legislative instrument provides an exemption from the application of the Act, in accordance with section 11 of the Act, to all vessels undertaking any voyage for the carriage of cargo or passengers between Norfolk Island and any port in the Commonwealth or in the Territories. This does not include any voyage in the course of which a vessel takes on cargo or passengers from any port in the Commonwealth or in the Territories other than a port in Norfolk Island for unloading or disembarking at another such port. This means that vessels of the kind specified in the instrument are not required to apply for a licence under the Act.
The purpose of this exemption is to allow Norfolk Island access to shipping services at competitive freight rates, recognising that shipping services for Norfolk Island are limited.
The legislative instrument does not make any substantive changes to the law as it continues a longstanding exemption provided for under subsection 421 (1) of the Navigation Act 1912 (the Navigation Act). The exemption remains unchanged from that provided for under subsection 421(1) of the Navigation Act and, as such, does not engage any of the applicable rights and freedoms.
Human Rights Implications
This legislative instrument does not engage any of the applicable rights or freedoms referred to in the seven international Conventions listed in the Human Rights (Parliamentary Scrutiny) Act 2011, due to the ability of foreign registered vessels to participate in Australia’s coastal trade, providing for economic freedom.
Conclusion
The legislative instrument is compatible with human rights as it does not raise any human rights issues.
Overview
The Coastal Trading (Revitalising Australian Shipping) Act 2012 was enacted to provide a regulatory framework for coastal trading in Australia, ensuring that the movement of cargo and passengers is carried out by vessels authorised through a licence. This Act addresses the need for a streamlined regulatory system that supports a viable shipping industry, contributing to the broader Australian economy. The Act mandates licensing for vessels involved in coastal trading, which is defined as the transportation of passengers or cargo for commercial purposes between ports in different states or territories, or within the same state or territory if extended to another state or territory. Non-compliance with the Act can result in pecuniary penalties.
The Coastal Trading (Revitalising Australian Shipping) Act 2012, enacted by the Parliament of Australia, aims to promote a robust shipping industry that benefits the national economy. Under section 11 of the Act, the Minister can issue exemptions for certain vessels or voyages, continuing an existing exemption for voyages between Norfolk Island and Australian ports, which was previously covered under the Navigation Act 1912. This exemption ensures that Norfolk Island has access to shipping services at competitive rates, acknowledging the limited shipping options available to the island. The exemption is designed to maintain existing arrangements without necessitating external consultation, as it is considered minor and of a machinery nature.
Scope and Application
The Coastal Trading (Revitalising Australian Shipping) Act 2012 regulates coastal trading by requiring vessels engaged in the carriage of passengers or cargo between ports in Australian states and territories to hold a licence. This Act applies to vessels conducting commercial activities that involve transporting passengers or cargo from one Australian port to another within or between states and territories. The Act ensures that vessels operating in this manner are licensed, with non-compliance potentially resulting in civil penalties. Section 11 of the Act allows the Minister to exempt certain vessels or voyages from the need for a licence, with the exemption applying to voyages between Norfolk Island and any Australian port, provided that the cargo or passengers do not embark or disembark at any Australian port other than Norfolk Island. This exemption continues a longstanding arrangement from the Navigation Act 1912 and remains in effect until 7 April 2023. The exemption is intended to facilitate competitive freight rates for Norfolk Island, recognising its limited shipping services. The exemption does not alter existing arrangements or engage any human rights as it allows foreign vessels to participate in Australia’s coastal trade, thereby ensuring economic freedom.
Key Provisions
The Coastal Trading (Revitalising Australian Shipping) Act 2012, as outlined in section 7, governs the movement of cargo and passengers for commercial purposes via vessels that must hold a valid licence. Coastal trading is defined as transporting cargo or passengers from a port in one state or territory to another, or within the same state or territory and continuing to another state or territory. Certain intra-state voyages may also be subject to the Act if declared by the Minister under section 12. Unlicensed coastal trading could result in a pecuniary penalty due to a civil penalty provision breach (section 7). Section 11 of the Act empowers the Minister to exempt specific vessels, persons, or classes thereof from the Act's application, either for a specific period or voyage. A legislative instrument, as per the Legislative Instruments Act 2003, formalises such exemptions. The exemption for voyages between Norfolk Island and Australian states or territories, as per the legislative instrument, allows vessels to carry cargo or passengers without a licence, except for voyages that start or end outside Norfolk Island. This exemption, commencing on 8 April 2018 and ending on 7 April 2023, mirrors the longstanding exemption under subsection 421(1) of the Navigation Act 1912.
The Act imposes obligations on parties involved in coastal trading, mandating that they obtain a licence for their vessels if they are to engage in such activities. Non-compliance with this requirement may lead to financial penalties. The Minister's role, as per section 11, is to issue exemptions that dictate when the Act does not apply, thereby relieving certain vessels or individuals from the need to obtain a licence. This provision is intended to ensure that the Act's regulatory framework remains flexible, accommodating specific circumstances such as the unique situation of Norfolk Island, which requires access to competitive freight rates due to limited shipping services.
Breaching the Act's requirements without a valid licence can result in civil penalties, as stipulated in the civil penalty provisions. These penalties are pecuniary in nature, meaning they involve fines. The exact amount of these fines is not specified in the provided text, but they are intended to deter non-compliance with the licensing requirements. Additionally, the Act does not create any new criminal offences; instead, it focuses on ensuring that those engaging in coastal trading do so under the proper regulatory framework, thus maintaining the integrity and viability of the Australian shipping industry.
The legislative instrument is deemed compatible with human rights as it does not introduce any substantive changes to existing law, thereby not affecting any of the rights and freedoms recognised or declared in the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011. This compatibility is underscored by the continued allowance for foreign vessels to participate in Australia's coastal trade, thus maintaining economic freedom without infringing on human rights. The exemption for Norfolk Island voyages remains unchanged from the Navigation Act 1912, ensuring that no new human rights issues are introduced.