Ships (Capital Grants) Regulations (Amendment) 1995 No. 73
EXPLANATORY STATEMENT
STATUTORY RULES 1995 No. 73
Issued by the Authority of the Minister for Transport
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 for the introduction of more efficient ships into the Australian shipping industry. The Act provides for the payment of a taxable grant to the owners of eligible trading ships, as defined under the Act.
To be eligible for grant, a ship must be capable of being crewed within benchmark maximum crew levels prescribed under the Act for a particular category of ship. The Act specifies three statutory categories of ship, and provides for the creation of a category of ship by regulation where ships do not fit into the existing statutory categories. A ship must possess a category certificate in order for a grant to be payable to the shipowner.
The Regulations create a category of ship for the "Queenscliff", with a specified maximum crew level of 10 on specified voyages. The maximum crew level has been assessed by the Australian Maritime Safety Authority to be safe and efficient for the operations of this ship.
The "Queenscliff" is a passenger/vehicle ferry which operates on a daily basis between Queenscliff and Sorrento, within Port Phillip Bay, Victoria. The ship operates within sheltered waters and primarily during the hours of daylight.
In the absence of an additional category, the maximum crew level of 21 prescribed under the Act for non-tankers would apply to the "Queenscliff". Due to the small size of the ship, its operational requirements, and work practices, it would not be consistent with the intention of the Act that this ship operate with a maximum crew level of 21.
Regulation 1 Provides for the date of effect of the amendment. The commencement date has been backdated to 17 December 1993, the date of delivery and commissioning of the ship. The backdating of the Regulations is neither detrimental to the owner of the "Queenscliff", nor does it provide a benefit to the Commonwealth.
Regulation 2 Provides that the Regulations amends the Ships (Capital Grants) Regulations.
Regulation 3 Identifies the vessel to which the Regulations refers by providing a definition of the "Queenscliff".
Regulation 4 Prescribes a category of ship for the "Queenscliff", setting out the specified voyages which may be undertaken under that category.
Regulation 5 Prescribes the maximum crew number for the "Queenscliff" while undertaking voyages specified under the Regulations.
Overview
The Ships (Capital Grants) Regulations (Amendment) 1995 No. 73 were enacted to address a specific operational need for the passenger/vehicle ferry "Queenscliff", which operates between Queenscliff and Sorrento within Port Phillip Bay, Victoria. The underlying Act, the Ships (Capital Grants) Act 1987, aims to incentivise the introduction of more efficient ships into the Australian shipping industry by providing taxable grants to the owners of eligible trading ships. To be eligible, a ship must meet certain crewing benchmarks. This amendment responds to the need for a tailored category for the "Queenscliff" ferry, which would otherwise be subject to a maximum crew level of 21 for non-tankers, deemed inappropriate given its size and operational conditions. By setting a maximum crew level of 10 for specified voyages, the amendment aligns more closely with the intended purpose of the Act, ensuring operational safety and efficiency while providing the necessary regulatory framework for grant eligibility.
Scope and Application
The Ships (Capital Grants) Regulations (Amendment) 1995 applies to the "Queenscliff", a passenger/vehicle ferry operating between Queenscliff and Sorrento within Port Phillip Bay, Victoria. The Act provides for the payment of a taxable grant to the owners of eligible trading ships that meet specific criteria, including having a category certificate that specifies a maximum crew level deemed safe and efficient by the Australian Maritime Safety Authority. These Regulations create a new category for the "Queenscliff", recognising its unique operational requirements and setting a maximum crew level of 10 for specified voyages, as opposed to the 21 crew members that would apply under the existing non-tanker category. The amendments ensure that the "Queenscliff" operates under conditions that align with the purpose of the Act, which is to incentivize the introduction of more efficient ships into the Australian shipping industry. The Regulations' commencement date was backdated to 17 December 1993, aligning with the ship's delivery and commissioning date, without providing any undue advantage or disadvantage to the shipowner or the Commonwealth.
Key Provisions
The Ships (Capital Grants) Regulations (Amendment) 1995 No. 73 provide a specific category and maximum crew levels for the vessel "Queenscliff," a passenger/vehicle ferry operating between Queenscliff and Sorrento in Port Phillip Bay, Victoria. Regulation 3 identifies the "Queenscliff" as the vessel to which the Regulations apply, and Regulation 4 prescribes a category of ship for it, allowing it to undertake specified voyages (Reg. 4). Regulation 5 sets the maximum crew number for the "Queenscliff" while undertaking these voyages, at a level of 10, as assessed to be safe and efficient by the Australian Maritime Safety Authority (Reg. 5).
The Act imposes certain obligations and requirements on the parties and entities it governs. For instance, to be eligible for a grant, a ship must be capable of being crewed within the benchmark maximum crew levels prescribed by the Act for a particular category of ship (s. 42). To receive a grant, a ship must possess a category certificate in accordance with the Act. The Regulations provide for the creation of a new category of ship where ships do not fit into the existing statutory categories. In this case, the Regulations create a specific category for the "Queenscliff" because its small size, operational requirements, and work practices do not align with the maximum crew level of 21 prescribed for non-tankers under the Act.
Failure to comply with the requirements of the Act and Regulations may result in civil or criminal consequences. The Act does not explicitly state any offences, penalties, or civil/criminal consequences for breach. However, the failure to adhere to the specified maximum crew levels and category requirements may result in the loss of eligibility for the grant. Additionally, any non-compliance with maritime safety regulations or failure to possess a category certificate may result in further civil or criminal penalties under other applicable maritime laws. The maximum penalties for such breaches would be determined by the specific provisions of the relevant laws.