EXPLANATORY STATEMENT
STATUTORY RULES 1988 NO 279
Issued by the Authority of the Minister for Transport and Communications
Subject - Ships (Capital Grants) Act 1987
Ships (Capital Grants) Regulations (Amendment)
Section 42 of the Ships (Capital Grants) Act 1987 (the Act) provides that the Governor-General may make regulations not inconsistent with the Act, prescribing all matters which by the Act are required or permitted to be prescribed for carrying out or giving effect to the Act.
The proposed Ships (Capital Grants) Regulations (Amendment) will insert an interpretation regulation, declare a category of ships under the Act and set a maximum crew level for this category of ships. The amendments also set fees for applications under the Act.
The Act is intended to provide an incentive for the introduction of more efficient ships into the Australian shipping industry. The Act provides a grant to shipowners on the introduction of eligible ships. To be eligible a ship must comply with certain crew levels specified in the Act which are determined according to the category of ship. The Act provides for regulations to create categories where proposed ships do not fit the existing categories.
It is therefore necessary to make a regulation specifying a category of the Coral Princess, a small ship which does not have the operational requirements and work practices used to derive the existing categories in the Act which relate to major trading ships.
It is not appropriate, due to the characteristics of its operations, that the maximum crew level of 21 determined for major trading ships be applicable to the Coral Princess. It is therefore proposed to specify a maximum crew level of 12, the level assessed by the Department of Transport and Communications to be safe and efficient for this ship’s operations.
The regulations declare a category of ships in respect of the Coral Princess defining the operations of this ship as voyages in Queensland coastal waters, primarily in daylight hours. For these operations it a maximum crew level of 12 is prescribed.
Overview
The Ships (Capital Grants) Act 1987 was enacted to provide an incentive for the introduction of more efficient ships into the Australian shipping industry by offering grants to shipowners. The Act aims to encourage the adoption of ships that comply with specific crew levels, which are determined by the category of ship. To implement this policy, the Act allows for the creation of new categories of ships through regulations. The Ships (Capital Grants) Regulations (Amendment) introduced by Statutory Rules 1988 No 279 under the authority of the Minister for Transport and Communications, address the need to accommodate a specific category of ships, such as the Coral Princess, which does not fit into the existing categories due to its unique operational requirements. These regulations define a new category for the Coral Princess, specifying its operations in Queensland coastal waters and setting a maximum crew level of 12, deemed safe and efficient for its operations by the Department of Transport and Communications.
Scope and Application
The Ships (Capital Grants) Act 1987 applies to shipowners who introduce eligible ships into the Australian shipping industry to receive grants. The Act is designed to incentivise the introduction of more efficient ships, with eligibility determined by compliance with specified crew levels, which vary according to the ship's category. The Act enables the creation of new categories for ships that do not fit existing ones and mandates regulations to this effect. The geographic scope of the Act is national, applying to ships operating within Australian waters. The Act’s application is extended through subordinate regulations, which can specify new categories of ships and associated crew levels, as seen in the amendment concerning the Coral Princess, a small ship operating in Queensland coastal waters with a prescribed maximum crew level of 12. These regulations are made to cater to the unique operational requirements of specific ships, ensuring that grant eligibility is aligned with safety and efficiency standards.
Key Provisions
The Ships (Capital Grants) Regulations (Amendment) introduce several key provisions under the Ships (Capital Grants) Act 1987. Section 42 of the Act empowers the Governor-General to make regulations that are consistent with the Act, to cover all matters required or permitted for its implementation. The proposed amendments primarily aim to insert an interpretation regulation, declare a new category of ships, and set a specific maximum crew level for these ships. Additionally, the amendments establish fees for applications under the Act. This regulation seeks to create a tailored category for the Coral Princess, a small ship that operates under conditions significantly different from major trading ships.
Under the new regulations, the Coral Princess is categorised as a vessel operating in Queensland coastal waters, predominantly during daylight hours. This category is distinct from existing categories in the Act, which are designed for larger trading ships with different operational requirements. The regulations specify a maximum crew level of 12 for the Coral Princess, a level deemed safe and efficient by the Department of Transport and Communications. This decision reflects the unique operational characteristics of the Coral Princess, which do not align with the criteria used for larger ships.
The obligations imposed by these regulations include compliance with the newly established category and crew level for the Coral Princess. Shipowners and operators must adhere to the specified maximum crew level of 12 when applying for grants under the Act. They must also ensure that their applications include the necessary fees as outlined in the amended regulations. Failure to comply with these provisions could result in the ship being ineligible for the grant, impacting the financial incentives provided by the Act.
Breaching the regulations can lead to both civil and criminal consequences. The Act does not specify particular offences but implies that non-compliance with the grant conditions and regulations could be considered a breach. The penalties for such breaches are not explicitly stated in the explanatory statement, but typically, breaches of regulatory provisions under Australian legislation can result in fines and other legal actions. The maximum penalties would depend on the severity of the breach and the specific provisions of the Act and any related regulations. Ensuring compliance with these regulations is therefore crucial for shipowners seeking to benefit from the capital grants provided under the Act.