EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Shipping and Aviation Support
Subject - Ships (Capital Grants) Act 1987
Ships (Capital Grants) Regulations (Amendment)
No. 256
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 Act is intended to provide an incentive in the form of taxable grants for the introduction of more efficient ships into the Australian shipping industry. To be eligible for a grant a ship must comply with certain crew levels specified in the Act which are prescribed 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 necessary to make a regulation specifying a category for “ship constructed by Australian Shipbuilding Industries (WA) Pty Ltd with Hull Number 291, on voyages”, a small container/general cargo ship recently launched which has operational requirements and work practices different from those of the major trading ships to which the existing categories relate.
It is not appropriate, due to the small size of the ship, its design, operational requirements and work practices that the maximum crew level of 21 prescribed for major trading ships be applicable to “ship constructed by Australian Shipbuilding Industries (WA) Pty Ltd with Hull Number 291, on voyages”. It is proposed to create a regulation under the Act specifying a maximum crew level of 11, the level assessed by the Department of Transport and Communications to be safe and efficient for the ships’ operations.
The regulations declare a category of ships in respect of the “ship constructed by Australian Shipbuilding Industries (WA) Pty Ltd with Hull Number 291, on voyages”. For this ship a maximum crew level of 11 is prescribed.
No person shall be disadvantaged by the proposed Regulations being made retrospective to 30 June 1990, consistent with subsection 48(2) of the Acts Interpretation Act 1901.