Mr ANDERSON (Deputy Prime Minister) (9:32 AM) —I move:

That the bill be now read a second time.

The government is committed to promoting a modern and efficient shipping industry for Australia and, as part of that commitment, is revising the Navigation Act 1912.

The first stage of that process, which is to be implemented through the Navigation Amendment (Employment of Seafarers) Bill 1998, is the removal of employment related provisions in the act, which are inconsistent with the Workplace Relations Act 1996 and the concept of company employment. Stage two will involve a comprehensive rewrite of the Navigation Act 1912 to make it a more efficient and effective regulatory tool.

The Navigation Act 1912 has its origins in the British Merchant Shipping Act of 1894, and the employment related provisions were originally intended to cover situations where the majority of the crew of a ship were employed on a casual basis, with crew contracted to serve on a particular ship for a particular voyage. At the end of the voyage the crew were paid off, with the employer having no further commitment regarding the employment of individual crew members. With the shift to company employment a number of provisions in the Navigation Act 1912 are no longer relevant.

Under company employment the terms and conditions applying to seafarers are matters for negotiation between the seafarers and their employers. Legislative backing for such arrangements, which can be tailored to the needs of individual companies, can be obtained through the Workplace Relations Act 1996.

In summary, the major amendments in the bill will abolish the Marine Council and its functions, and will also remove provisions dealing with:

. prohibition on demanding or receiving fees for the supply of seamen;

. prohibition on using the crew of a ship engaged in overseas voyages for handling cargo or ballast while the ship is in an Australian port;

. requirements to enter into a prescribed form of `articles of agreement' covering conditions of employment; and

. certain procedures for the discharge of seamen from service on a ship and methods for paying their wages.

Abolition of the Marine Council

The Marine Council has previously dealt mainly with issues concerning the suitability of seamen for employment at sea and whether there is just cause to suspend a seaman from employment on ships. The council may, for example, be called upon to consider what to do about seamen who report late for work. Under company employment it is the responsibility of the employer to deal with these matters and there is no need for a government appointed body to perform such tasks.

Fees for the supply of seamen

At present the Navigation Act 1912 prohibits demanding or receiving fees for the supply of seamen. This provision originally came from the British Merchant Shipping Act of 1894 and was intended to prohibit demanding payment from seamen for finding them jobs. This practice was generally known as crimping.

There are many ship management and crewing agents around the world today that specialise in managing crewing matters, including supplying seamen, on behalf of shipowners and charge them for such services. Given this situation and the normal employment practices in Australia, the bill provides for the removal of this unnecessary provision.

Use of crew for handling cargo or ballast

The question of what limits should be placed on the work to be carried out by a ship's crew is a matter that should be determined by negotiation between employers and their seagoing employees.

While as a general rule shore-side stevedores carry out the loading and unloading of ships, there can be circumstances where it may be quite appropriate for the crew to handle goods that could fall under the broad description of cargo. Examples include the cleaning of holds, where the crew would need to handle residues of cargo and the loading of ships' stores.

Requirement to enter into a prescribed form of `Articles of Agreement'

Articles of Agreement are in effect a contract of employment between the master of a ship, on behalf of the employer, and each member of the crew. The Navigation Act 1912 prescribes in great detail the procedures and content of Articles of Agreement. As such, this aspect of the act is inconsistent with the aim of the Workplace Relations Act 1996 to give employers and employees a high degree of flexibility in making employment arrangements best suited to their needs.

While the bill removes the prescriptive elements covering Articles of Agreement, it still leaves a requirement in the Navigation Act 1912 that a ship shall not be taken to sea unless the employer has entered into an agreement with the master and seamen. Legislative backing for such an agreement can be obtained through the Workplace Relations Act 1996.

Procedures for the discharge of seamen and methods of paying wages

Division 9 of the Navigation Act 1912 contains very detailed requirements covering procedures for discharging a seaman from serving on a ship. These procedures are no longer appropriate under company employment arrangements.

However, some aspects of division 9 are relevant to assessing the nature and extent of a seafarer's service for the safety purposes covered by the International Maritime Organisation's Convention on the Standards of Training, Certification and Watchkeeping. These matters will be covered in future by Marine Orders made pursuant to section 15 of the Navigation Act 1912.

Division 10 contains another very detailed set of provisions covering how wages are to be paid to seafarers. Clearly, arrangements for paying wages to seafarers are matters that can, and should, be covered under company employment agreements. The bill provides for the repeal of all sections in division 10 except for those which deal with the rights of masters and seamen in respect of claims for wages and repatriation to their home port if the ship on which they are serving is lost or wrecked, or the owner or operator goes bankrupt during a voyage.

In conclusion, while conditions in the shipping industry a hundred years ago might have justified the detailed employment provisions contained in the Navigation Act 1912, this is simply not the case today when Australian seafarers enjoy exceptionally good working conditions.

The industry itself has recognised that in future these conditions will be reflected in company employment arrangements. Amending the Navigation Act 1912 to bring it into line with modern practice complements that approach. I present the explanatory memorandum.

Debate (on motion by Mr Martin Ferguson) adjourned.