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Success of government stevedoring reform reflected in increased funding requirements.



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MEDIA RELEASE

 

John Anderson

Minister for Transport and Regional Services

 

SUCCESS OF GOVERNMENT STEVEDORING REFORM REFLECTED IN INCREASED FUNDING REQUIREMENTS

 

A64/99

11 May1999

 

The success of the Government’s stevedoring reform - in particular the de sire to access stevedoring redundancy funding - has placed unanticipated demands on the resources of the Maritime Industry Finance Company Limited (MIFCo) that are being addressed as part of the Budget process, the Minister for Transport and Regional Services, John Anderson, said today.

 

The higher than expected level of redundancies will require an increase in the appropriation cap, contained in the Stevedoring Levy (Collection) Act, from $250m to $350m so that MIFCo can secure adequate funds to meet all expected redundancies.

 

“While the amount of funding required is greater than expected, the Government stands by its commitment to ensure that sufficient funds are available for the reforms,” Mr Anderson said. “The Government also stands by its commitment to ensure that reform comes at no cost to the taxpayer and that the funds are recouped through an industry levy.”

 

This decision follows the detailed monitoring of the number and size of redundancy payments made by MIFCo over recent months and further payments expected to be made following negotiations between stevedoring companies, principally P&O Ports, and the MUA.

 

The rate of levy, set at $12 per container and $6 per vehicle, will not increase as a result of the increased funding requirements. However, it is now likely to be in place until around 2010 rather than ending in 2008.

 

Media contact: Paul Chamberlin 02 6277 7680 / 0419 233 989

 

 

 

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