Federal election 2016: minister, MUA talk shipping reform

The Turnbull government is reconsidering hardline shipping changes after unprecedented talks with the maritime union.

Infrastructure Minister Darren Chester is reviewing the coastal shipping bill, which reverses Labor’s 2012 changes. Picture: AFP

The Turnbull government is reconsidering its hardline coastal shipping changes after unprecedented talks with the militant maritime union, casting doubt on its plan to open waterways to cheaper foreign competition.

Infrastructure Minister Darren Chester is reviewing the coastal shipping bill, which reverses Labor’s 2012 changes, after a fierce backlash from the unions and crossbench senators.

It is the first sign of a break in the deadlock over the proposed changes that were defeated in the Senate in November and that have been branded by Bill Shorten as “Work Choices on water”.

The proposals are a hot-button issue in marginal Tasmanian seats where Coalition politicians have campaigned on the policy of ­deregulating coastal shipping, saying it will cut freight costs.

Last month, seven Tasmanian Liberal senators petitioned Mr Chester to reintroduce the legislation in its current form during budget week. The move was spearheaded by senator Eric Abetz, who slammed Labor’s reforms as a deal for the benefit of the Maritime Union of Australia.

Mr Chester’s predecessor Warren Truss took a tough stance against the union over its opposition to the proposals. However, The Australian has learned Mr Chester, who took over from Mr Truss in February, met MUA deputy national secretary Mick Doleman and executive policy ­officer Rod Pickette this month.

Mr Chester’s chief of staff, Robert Curtin, subsequently wrote to MUA national secretary Paddy Crumlin saying: “The Minister will be happy to meet you in order to work together to ensure the ­viability of the coastal shipping industry in Australia.

“The Government is willing to work collaboratively with all shipping industry participants, including the Maritime Union of Australia, to build the coastal shipping industry in Australia.

Mr Chester’s office yesterday confirmed he had begun a comprehensive review of existing legislation and the proposed Shipping Legislation Amendment bill.

Mr Chester told The Australian he was “listening to relevant stakeholders and hearing their specific concerns ... in the spirit of co-­operation”. He said he had also met others, including the shipowners’ body, Maritime Industry Australia Limited, other maritime unions and manufacturing and petroleum industry groups.

Shipping companies now must pay local wages to foreign seafarers carrying freight between Australian ports. The Coalition’s bill, which Labor said would cost jobs, would scrap the rule and open domestic shipping routes that are the preserve of Australian flagged vessels to foreign competition.

Labor’s infrastructure spokesman Anthony Albanese yesterday called on Malcolm Turnbull to “clarify his intentions”.

“Australians deserve to know before they vote ... if Mr Turnbull wants to have another go at putting hardworking Australians out of work by replacing them with overseas mariners paid as little as a few dollars an hour,” he said.