Ships (Capital Grants) Regulations (Amendment) 1991 No. 412
EXPLANATORY STATEMENT
STATUTORY RULES 1991 No. 412
Issued by the Authority of the Minister for Shipping and Aviation Support
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 for the purposes of the Act.
The Act is intended to provide an incentive in the form of a taxable grant for the introduction of more efficient ships into the Australian shipping industry. To be eligible for a grant a ship must comply with certain maximum 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.
The Regulations create categories for the ships "Northwest Sandpiper" and "Searoad Tamar", with specified maximum crew levels which have been assessed by the Australian Maritime Safety Authority to be safe and efficient for the operations of these ships. The Regulations also vary the existing category created for the ship "SeaCat Tasmania" to allow it to undertake a wider variety of voyages, within its maximum crew level, than its category currently allows.
The "Searoad Tamar" is one of ANL's new general cargo ships in operation across Bass Strait. The maximum crew level for the ship is 17.
The "Northwest Sandpiper", currently under construction, is a large liquefied natural gas (LNG) tanker which will be dedicated to the export of LNG from Australia's Northwest Shelf Project to major power utilities in Japan. The characteristics of the LNG require the ship to be operated to very high safety. standards and the need to ensure a continuous supply of gas to the Japanese customers means that reliability in the operation of the ship is extremely important. These factors and the specialised nature of the cargo operations of the ship justify the carriage of a larger crew than would be the case on a normal cargo ship. The maximum crew level for the ship is 25.
In the absence of additional categories, the maximum crew level of 21 prescribed in the Act would apply to the "Northwest Sandpiper" and the "Searoad Tamar". Due to their size, design, operational requirements and work practices it is not consistent with the intention of the Act that these ships operate with crews of that size.
Overview
The Ships (Capital Grants) Regulations (Amendment) 1991 No. 412 were enacted to address specific gaps in the existing regulatory framework for the allocation of capital grants under the Ships (Capital Grants) Act 1987. This Act was established to incentivise the introduction of more efficient ships into the Australian shipping industry by providing a taxable grant to eligible vessels. However, the existing categories for maximum crew levels did not adequately accommodate new ship designs, such as the "Northwest Sandpiper" and "Searoad Tamar", which have unique operational requirements and safety standards. The problem identified was the need for tailored regulations to ensure that these ships could operate safely and efficiently while receiving the intended grants.
The enacting body for these regulations was the Governor-General, acting on the authority granted by Section 42 of the Ships (Capital Grants) Act 1987. The policy objective of these amendments was to align the regulatory framework more closely with the practical and safety needs of modern shipping operations, ensuring that grants are awarded in a manner that supports the industry's efficiency and reliability. The Regulations specifically introduced new categories for the "Northwest Sandpiper" and "Searoad Tamar", with maximum crew levels assessed to be safe and efficient by the Australian Maritime Safety Authority, thereby facilitating the appropriate allocation of grants to these vessels.
Scope and Application
The Ships (Capital Grants) Regulations (Amendment) 1991 No. 412 applies to the Ships (Capital Grants) Act 1987, which is designed to provide a taxable grant to incentivise the introduction of more efficient ships into the Australian shipping industry. This Act applies to ships that meet the specified maximum crew levels outlined within the Act, which are categorised according to the type and operational requirements of the ship. The Regulations specifically address the ships "Northwest Sandpiper" and "Searoad Tamar", establishing new categories with their respective maximum crew levels determined by the Australian Maritime Safety Authority to be safe and efficient for their operations. These Regulations also amend the existing category for the ship "SeaCat Tasmania" to allow it to undertake a wider range of voyages within its prescribed maximum crew level. The geographic scope of the Act is nationwide, impacting the Australian shipping industry, and the application of the Act is extended through subordinate instruments such as these Regulations. The Act does not specify any exclusions or exemptions, but it does establish thresholds through the creation of specific categories for different types of ships, ensuring that the grants are appropriately targeted.
Key Provisions
The Ships (Capital Grants) Regulations (Amendment) 1991 No. 412 introduces new categories for ships "Northwest Sandpiper" and "Searoad Tamar" with specified maximum crew levels, as provided in section 42 of the Ships (Capital Grants) Act 1987. This amendment allows these ships to receive capital grants under the Act if they adhere to the newly prescribed crew levels. Additionally, the category for the ship "SeaCat Tasmania" is modified to permit a wider range of voyages while maintaining the maximum crew level. These new categories are intended to ensure the safety and efficiency of these ships in their specific operations, as assessed by the Australian Maritime Safety Authority.
Under these Regulations, the ship "Searoad Tamar" is categorised as a general cargo ship with a maximum crew level of 17, and the "Northwest Sandpiper" is categorised as a large liquefied natural gas (LNG) tanker with a maximum crew level of 25. These crew levels are specifically tailored to the operational requirements and safety standards of each ship type, ensuring that the ships can perform their intended functions efficiently and safely. The "Northwest Sandpiper" requires a larger crew due to the high safety standards and reliability needed for transporting LNG to Japan, while the "Searoad Tamar" operates with a crew level appropriate for its general cargo operations across Bass Strait.
The Regulations impose obligations on the ship owners and operators to ensure that their vessels comply with the specified maximum crew levels for the designated categories. This includes maintaining accurate records and documentation to demonstrate compliance with the Regulations. Failure to adhere to the prescribed crew levels may result in the ship being ineligible for the capital grants provided under the Act. Ship owners and operators must also ensure that their vessels are operated in accordance with the safety standards and operational requirements outlined by the Australian Maritime Safety Authority.
Breaches of the Regulations, such as operating a ship with a crew level that exceeds the prescribed maximum, may result in civil or criminal consequences. While specific penalties are not detailed in the Explanatory Statement, breaches of the Ships (Capital Grants) Act 1987 or associated Regulations could lead to enforcement actions by relevant authorities, including potential fines or other sanctions. It is important for ship owners and operators to comply with the Regulations to avoid any adverse legal or financial repercussions.