Purpose of the Bill

The purpose of the Navigation Amendment Bill 2024 (the Bill) is to amend the Navigation Act 2012 (the Act) to give effect to an amendment to the International Convention for the Safety of Life at Sea 1974 (the Convention).

Background

The International Convention for the Safety of Life at Sea 1974 (the Convention) entered into force in Australia on 17 November 1983 and is generally regarded as the most important international treaty concerning the safety of merchant ships. The Navigation Act 2012 implements Australia’s obligations under the Convention by promoting the safety of life at sea, promoting safe navigation, preventing pollution of the marine environment and by ensuring that the Australian Maritime Safety Authority (AMSA) has the necessary power to carry out inspections of vessels and enforce national and international standards.

The Convention is administered by the International Maritime Organization (IMO) as a specialised agency of the United Nations (UN) that is responsible for the safety and security of shipping and the prevention of marine and atmospheric pollution by ships. The primary objective of the Convention is to specify minimum standards for the construction, equipment and operation of ships, compatible with their safety.

The Convention contains the tacit acceptance procedure which provides that an amendment will enter into force on a specific date unless objections are received from a certain number of parties prior to that date.[1] Consequently, the Convention has been updated and amended on several occasions.

On 10 November 2022 the Maritime Safey Committee adopted the International Code of Safety for Ships Carrying Industrial Personnel (IP Code) which is a mandatory safety code for ships carrying industrial personnel that is aimed at ensuring the safety of people transported to work on offshore facilities. The text of the IP Code was adopted by Resolution MSC.521(106) which inserts the IP Code as a new Chapter XV of the Convention.

The aim of Chapter XV is to provide for minimum safety standards for ships that carry industrial personnel, and for the personnel themselves, and to address the specific risks of maritime operations within the offshore and energy sectors, which may include personnel transfer operations. Industrial personnel may be engaged in the construction, maintenance, decommissioning, operation or servicing of offshore facilities. These offshore facilities may include windfarms, oil and gas installations, aquaculture, ocean mining or similar activities.  

Joint Standing Committee on Treaties

The Joint Standing Committee on Treaties (JSCOT) is appointed by the Commonwealth Parliament to review and report on all treaty actions proposed by the Government prior to any action being taken that would bind Australia to the terms of the treaty. JSCOT identified the amendment to the Convention as a minor treaty action.

Minor treaty actions are generally technical amendments to existing treaties which do not impact significantly on the national interest. Minor treaty actions are not tabled in Parliament, however they are referred to JSCOT by the relevant Minister with an Explanatory Statement. JSCOT has the discretion to formally inquire into minor treaty actions or it can accept minor treaty action without a formal inquiry and report.

On 4 December 2023 the Assistant Minister for Foreign Affairs referred the amendment to the Convention to JSCOT (p. 26). JSCOT in its Report noted that the Government considered that the Bill is expected to have only have minor practical, legal and financial effects on Australia (p. 27). The Government explained that this is because it is rare that a vessel would carry industrial personnel to an Australian offshore facility from overseas and that Australia’s current regulatory arrangements on the safety of vessels engaged in offshore operations ‘likely meet, if not, exceed, the Amendment’s effect’ (p. 27). JSCOT recommended that the amendment to the Convention be endorsed as a minor treaty action without inquiry and that binding treaty action be taken.

Policy position of non-government parties/independents

At the time of writing no non-government parties nor any independent Members and Senators had commented on the Bill.

Key issues and provisions

Item 1 of the Bill amends section 14 of the Act to insert definitions for ‘industrial personnel’ and ‘industrial personnel vessel’.

The Bill defines industrial personnel as having the same meaning as the Convention. Chapter XV of the Convention defines industrial personnel as ‘all persons transported or accommodated on board for the purpose of offshore industrial activities performed on board other ships and/or offshore facilities’. The Convention defines offshore industrial activities as ‘the construction, maintenance, decommissioning, operation or servicing of offshore facilities related, but not limited to, exploration and exploitation of resources by the renewable or hydrocarbon energy sectors, aquaculture, ocean mining or similar activities’.

The Bill defines an industrial personnel vessel as a vessel that is prescribed by the regulations. Section 342 of the Navigation Act provides that AMSA may make a Marine Order with respect to any matter for which provision must or may be made by the regulations. As a result, the definition may be set out via regulation or by a Marine Order.[2] The Explanatory Memorandum states that providing the definition in this way allows for greater flexibility to make updates (p. 4).

Item 2 amends the definition of passenger under section 14 of the Act to exclude industrial personnel on board an industrial personnel vessel.

Item 3 amends the definition of seafarer under section 14 of the Act to exclude industrial personnel on board an industrial personnel vessel.

Item 4 repeals the notes under sections 124, 129, 146, 175 and 180. These notes refer to section 12 of the Act, which relates to the application of provisions that give effect to various conventions. The Explanatory Memorandum states that these notes have been used inconsistently across the Act and the Bill removes them to avoid confusion (p. 5). Section 12 of the Act continues to apply.

Item 5 of the Bill amends paragraph 315(1)(b) to fix an incorrect cross reference.

Item 6 amends section 339 of the Act, which sets out the general regulation making powers. It inserts paragraph 339(2)(ja) to clarify that regulations may make provision for or in relation to industrial personnel vessels.