Senator O'BRIEN (6:26 PM) —This legislation has some history in that most foreign international carriers operating into Australia are not subject to the Rome Convention of 1952, which was well intentioned at the time and was designed to limit the liability on industry arising from damage to persons and property on the ground. In the time when the convention was drawn up, the industry was in its infancy, and it is arguable that it was inappropriate for the industry to be required to meet the extent of the compensation that might be necessary in some of the greater calamities that might have occurred. However, the position has now changed, and that limitation is no longer valid. It is especially inappropriate when prompt and adequate compensation is to be considered for innocent victims of air accidents.

The involvement of the non-flying public who are injured as third parties on the ground is obviously not a matter of their choice. A 1952 convention should not be applied to them at this stage. As far as the opposition is concerned, what also highlights the situation as to the need for change is that the situation that applies when operators of aircraft registered in non-convention countries fly over Australian territory is quite different. While these operators are also subject to strict liability, there is no statutory limit to the compensation payable by them. As a consequence of these circumstances and Australia's adherence to the Rome Convention, damages received by victims of an accident caused by an Australian registered aircraft—such as Qantas or Ansett—on an international flight are likely to be substantially less than if an aircraft of a non-convention country—such as Japan, the UK or the United States—was involved. This variation in the levels of compensation creates uncertainty, can increase the costs on the judicial system and on the parties, and can increase the levels of litigation necessary to obtain better compensation.

This bill will have the effect of making all aircraft coming within its jurisdiction subject to strict and unlimited liability, and it will bring them into line with the great majority of foreign carriers who serve the Australian market and aircraft in the majority of Australian states. As this will require the repeal of current legislation, this bill needs to be passed—that is, the current legislation giving effect to the Rome Convention needs to be set aside. Australia's participation in the convention will be formally renounced, as I understand it, at a time consistent with the new act coming into force. The opposition supports these measures and commends the bill to the Senate.