Coastal Trading (Revitalising Australian Shipping) Act 2012-Section 11 Exemption for cruise vessels 2018 extension [F2016L01308] -Concluded matters [2016] AUSStaCSDLM 321 (9 November 2016)

Instrument	Coastal Trading (Revitalising Australian Shipping) Act 2012 - Section 11 Exemption for cruise vessels 2018 extension [F2016L01308]
Purpose	Exempts certain cruise ships from applying for a licence under the Coastal Trading (Revitalising Australian Shipping) Act 2012 when engaging in coastal trading
Last day to disallow	21 November 2016
Authorising legislation	Coastal Trading (Revitalising Australian Shipping) Act 2012
Department	Infrastructure and Regional Development
Scrutiny principle	Standing Order 23(3)(d)
Previously reported in	Delegated legislation monitor 7 of 2016

Matter more appropriate for parliamentary enactment

The committee commented as follows:

Scrutiny principle (d) of the committee's terms of reference requires the committee to consider whether an instrument contains matters more appropriate for parliamentary enactment (that is, matters that should be enacted via primary rather than delegated legislation). This may include instruments which extend relief from compliance with principal legislation.

Coastal Trading (Revitalising Australian Shipping) Act 2012 - Section 11 Exemption for cruise vessels 2018 extension [F2016L01308] (the instrument) exempts certain cruise ships from applying for a licence for the carriage of passengers between ports in the Commonwealth or in the Territories (other than between Victoria and Tasmania) under the Coastal Trading (Revitalising Australian Shipping) Act 2012 (CT (RAS) Act). The committee notes that the instrument extends, until 31 December 2018, an exemption that has been in place since 1998 and continues a longstanding exemption that was previously provided under subsection 286(6) of the Navigation Act 1912.

The ES to the instrument states that the exemption will:

provide certainty for industry in long term planning and positioning of large cruise vessels.

The committee also notes that the statement of compatibility to the instrument states:

The purpose of the exemption is to promote tourism activity within Australia, recognising that Australia does not currently have any Australian registered vessels in this category.

Given the duration and purpose of the exemption, it appears the instrument may be addressing an unintended consequence of the operation of the licensing provisions of the CT (RAS) Act. The committee's general preference is that exemptions are not used or do not continue for such a time as to operate as de facto amendments to principal legislation (in this case the CT (RAS) Act). However, no information is provided in the ES as to why the series of exemptions have been used in favour of an amendment to the relevant licensing provisions of the CT (RAS) Act.

The committee requests the advice of the minister in relation to this matter.

Minister's response

The Minister for Infrastructure and Transport advised:

With regard to the Coastal Trading (Revitalising Australian Shipping
Act 2012 - Section 11 Exemption for cruise vessels 2018 extension [F2016L01308], I can advise the Committee that in 2015, the Australian Government brought forward a proposal to reform Australia's coastal shipping sector through the Shipping Legislation Amendment Bill 2015. This bill would have had the effect of removing the existing exemption for large cruise ships and requiring them to participate in the coastal trading regime by compelling them to operate under a coastal trading permit.
With the defeat of the Bill in the Senate, the Government is currently considering its options for reforming coastal shipping and holding consultations with key stakeholders to help inform the final policy position. While reforms are pursued, I approved an extension to the existing
Section 11 exemption. The cruise shipping industry has informed me that
as it sets and markets its itineraries two years in advance, it requires certainty for at least this period.
Given that the Government is still working to finalise its future reform path, an extension of the existing exemption is, in my assessment, preferable to any more permanent removal of cruise ships from coastal trading licensing that an amendment to the legislation would provide.

Committee's response

The committee thanks the minister for his response and has concluded its examination of the instrument.