On 18 June 2015 the Australian Senate called an inquiry into the increasing use of so-called 'Flag of Convenience' shipping in Australia.
The call for the inquiry has arisen out of the death of two seafarers and one superintendent in three separate events on board the "Sage Sagittarius" during a six week period in late 2012. The inquiry follows the December 1992 House of Representatives report 'Ships of Shame, Inquiry into Ship Safety', which contributed to a period of international shipping safety and welfare reform. One of the terms of reference of the inquiry will be to consider the progress made since the 1992 report.
Submissions on the inquiry are required to be lodged before 7 August 2015.
Terms of Reference
The terms of reference for the inquiry are "the increasing use of so-called Flag of Convenience shipping in Australia, with particular reference to:
- the effect on Australia's national security, fuel security, minimum employment law standards and our marine environment;
- the general standard of Flag of Convenience vessels trading to, from and around Australian ports, and methods of inspection of these vessels to ensure that they are seaworthy and meet required standards;
- the employment and possible exposure to exploitation and corruption of international seafarers on Flag of Convenience ships;
- discrepancies between legal remedies available to international seafarers in state and territory jurisdictions, opportunities for harmonisation, and the quality of shore-based welfare for seafarers working in Australian waters;
- progress made in this area since the 1992 House of Representatives Standing Committee on Transport, Communications and Infrastructure report Ships of Shame: inquiry into ship safety; and
- any related matters."
Submissions and Report
The terms of reference are far-reaching and include matters of shipping security, employment standards, vessel inspection and Port State Control. To the extent that any adverse findings are made, it is likely that this will result in recommendations for legal and regulatory reform in these areas, which could have substantial impacts on the conduct of shipping to and from Australia.
Accordingly, it is essential that interested and affected industry participants and bodies and so-called 'Flag of Convenience' flag State authorities lodge submissions for consideration by the Committee in the preparation of its report. If submissions are not lodged, the findings and recommendations of the Committee may not be properly informed and/or in accordance with international commercial shipping practices.
Submissions must be received by the Committee no later than 7 August 2015. The Committee's report is expected to be released in early 2016.
Our Transport team can assist in preparing and lodging any submissions.
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