The Australian Shipowners Association (ASA) has labelled a recent audit commissioned by the Federal Government "shockingly simplistic, one-dimensional and reckless" with regards to overhauling the shipping industry.
A recommendation found within Phase Two of the report suggests that Australia's cabotage policy be abolished, despite no apparent supporting evidence, research or impacts into such a move, said the peak industry body.
"It is unclear how the National Audit Commission came to this conclusion as there seems to be absolutely no analysis of the impact of this proposal," commented ASA acting executive director Angela Gillham.
Cabotage is the common practice around the world whereby domestic ships are given preference over foreign ships to carry domestic cargo. Where a local ship is not available, a foreign ship undertakes the work. Australia has had a system of cabotage since the beginning of maritime regulation within the country.
"Cabotage regimes are not unusual – many countries recognise that having a domestic shipping industry helps to ensure stability in shipping services and price and provides an important source of the strategic skills necessary for a country to be able to participate in international trade," Ms Gillham continued.
Australia's position as a net exporter and island nation means it relies on strategic maritime skills developed by its local shipping industry, such as maritime safety inspectors, port pilots, harbour masters and tug operators, said the ASA.
"The report is completely devoid of any consideration of the strategic impacts of what is recommended and ignores any national benefit of having a local shipping industry, which is most disappointing," concluded Ms Gillham.
