Commonwealth Numbered Regulations - Explanatory Statements

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SHIPS (CAPITAL GRANTS) REGULATIONS (AMENDMENT) 1996 NO. 87

STATUTORY RULES 1996 No. 87

Issued by the Authority of the Minister for Transport and Regional Development

Ships (Capital Grants) Act 1987

Ships (Capital Grants) Regulations (Amendment)

Section 42 of the Ships (Capital Grants) Act 1987 (the Act) provides that the GovernorGeneral may make regulations prescribing all matters required or permitted to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

The Act is intended to provide an incentive for the introduction of modern technologically advanced ships to the Australian fleet. The Act provides for the payment of a taxable grant to the owners of eligible trading ships, as defined under section 3 of the Act. These regulations are necessary to permit the specified ships to receive a capital grant and operate at efficient crew levels in accordance with the intentions of the Act.

Section 3 defines an 'eligible ship' as one which can be operated with a maximum crew level within particular categories. However, in order for a grant to be payable, subsection 8(4) provides that a ship must first possess a category certificate issued under the Act which specifies the category of ship and the maximum crew number for that category of ship. Subsection 6(1) of the Act specifies three categories of ship and subsection 6(2) provides for the declaration of further categories of ships by regulation where the categories under subsection 6(1) are inappropriate.

The Ships (Capital Grants) Regulations (Amendment), (the Regulations), declare categories of ships for the:

*       Aburri, with a specified maximum crew level of six when on voyages;

*       Gulf Cloud, with a specified maximum crew level of five when on voyages; and

*       Northwest Stormpetrel, with a specified maximum crew level of twenty-two when on voyages,

in accordance with paragraph 6(2)(c) of the Act.

The maximum crew levels have been assessed by the Australian Maritime Safety Authority to be safe and efficient for the. operations of each ship.

The Aburri is a 3150 dwt bulk carrier operating a shuttle service carrying lead/zinc concentrate between Bing Bong in the Northern Territory and a designated anchorage some 15 nautical miles offshore in the Gulf of Carpentaria, where the cargo is discharged into overseas bulk carriers,

The Gulf Cloud is a small (1100 dwt) general cargo vessel which operates in a limited voyage pattern between Karumba and Weipa in Queensland.

The Northwest Stormpetrel is a specially designed liquefied natural gas (LNG) carrier dedicated to the carriage of LNG between the North West Shelf gas project and Japanese power utilities.

In the absence of an additional category, the maximum crew number provided under section 3 of the Act for each ship at the time of their construction would be 21 for nontankers on voyages in the case of the Aburri and Gulf Cloud and 21 for a tanker on overseas voyages in the case of the Northwest Stormpetrel. By virtue of Part K of the Transport Legislation Amendment Act 1995 (No. 95), the maximum crew levels specified in section 3 of the Act were reduced to 18 for all ships. Due to the size and operational requirements of the Aburri, and Gulf Cloud, and the unique operational requirements of the Northwest Stormpetrel, it would be inconsistent with the intention of the Act if these ships were to operate with maximum crew levels of 21.

Regulation 1 Provides for the commencement of the amendment. The commencement date has been backdated to the date of commissioning of each ship. The backdating of the Regulations is neither detrimental to the owners of the Aburri, Gulf Cloud, or Northwest Stormpetrel, nor does it provide a benefit to the Commonwealth.

Regulation 2 Provides that the Ships (Capital Grants) Regulations are amended as set out in the Regulations.

Regulation 3 Identifies the vessels to which the Regulations refer by providing a definition of the Aburri, Gulf Cloud and Northwest Stormpetrel.

Regulation 4 Prescribes a category of ship for each of the Aburri, Gulf Cloud and Northwest Stormpetrel.

Regulation 5 Prescribes the maximum crew number while undertaking voyages for the Aburri, Gulf Cloud and Northwest Stormpetrel.