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1999
THE PARLIAMENT
OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF
REPRESENTATIVES
_______________________________________________________________
STEVEDORING
LEVY (COLLECTION) AMENDMENT BILL
1999
_______________________________________________________________
EXPLANATORY
MEMORANDUM
(Circulated with the
authority of the Minister for Transport and Regional Services the Honourable
John Anderson MP)
ISBN: 0642 403368
STEVEDORING LEVY (COLLECTION) AMENDMENT BILL 1999
The Stevedoring Levy (Collection) Act 1998 (the Act) commenced in
July 1998.
The Act provides for a levy on certain stevedoring
operations, namely the loading and unloading of containers and vehicles. The
purpose of the levy is to meet the cost of payments under section 18 of the Act.
The Act underpinned the administrative arrangements introduced by the Government
to facilitate waterfront reform.
The Bill increases the amount under
section 18 of the Act that may be authorised by the Minister, in connection with
stevedoring industry reform.
The amendment increases the amount that may be authorised by the Minister
in connection with stevedoring industry reform from $250 million to $350
million. This will require the levy imposed by the Stevedoring Levy
(Imposition) Act 1998 to stay in place for a longer period to repay
appropriations authorised under section 18 of the Act.
The Government introduced legislation in April 1999, which upon receiving
Royal Assent became the Stevedoring Levy (Collection) Act 1998 (the Act).
The Act underpinned the administrative arrangements introduced by the Government
to facilitate waterfront reform.
The Act provides for collection of a
levy on certain stevedoring operations, namely the movement of containers and
vehicles. The Act operates in conjunction with the Stevedoring Levy
(Imposition) Act 1998 under whose terms the levy is imposed. The levy is
imposed on the loading and unloading of containers and vehicles and is paid by
stevedoring companies.
The Stevedoring Levy (Imposition) Act 1998
provides that the rate of levy is $20 per container and $10 per vehicle or a
lower rate if prescribed by the regulations. The rate of levy has been lowered
by regulation and is currently $12 for containers and $6 for vehicles. The
first levy collection month was February 1999, with the first levy remittances
received in March 1999.
The rate of levy was determined in consultation
with the major stevedoring companies. The major stevedoring companies have
agreed not to pass the cost of a levy imposed at the rate of $12 per container
and $10 per vehicle, onto their customers.
The levy is used to recover
from the industry amounts that the Minister may authorise under section 18 of
the Act.
A. PROBLEM IDENTIFICATION
The Government is
actively seeking to encourage reform in the Australian stevedoring industry with
the aim of achieving work best practice in relation to productivity and
reliability in cargo stevedoring and to realise the associated national economic
benefits.
The Government has encouraged stevedoring employers to
introduce changes that reform work practices, which are inhibiting the
stevedoring company’ ability to achieve internationally competitive levels
of productivity and reliability and manage the rationalisation of their labour
force resulting from the necessary restructuring of operations.
The Act
provides that no more than $250 million may be authorised for stevedoring
industry reforms under section 18. At the time the Government believed that
this would provide sufficient funds to meet the costs arising from the
implementation of reform and restructuring in the stevedoring industry, in
particular the cost of redundancies. However, the estimated number and cost of
redundancies is greater than anticipated. Therefore, the Government is seeking
to ensure that it is able to authorise funding to meet the total expected cost
of redundancies and ensure that sufficient funds are available for other
worthwhile reforms and to meet the administrative costs associated with
collection of the levy.
Specification of Regulatory Objectives
The objective is to ensure that the Government is able to meet the
cost of all eligible redundancies and that the Government has sufficient funds
available to assist stevedoring companies implement non redundancy related
reforms and meet the administrative costs associated with collection of the
levy. A further objective is to ensure that the cost of reform in the
stevedoring industry is met by the industry and not the taxpayer. This
philosophy underpinned the original legislation and the Government remains
committed to encouraging reform in the stevedoring industry funded by the
industry not the taxpayer.
The Government considered a number of options when it became clear that
the total cost of redundancies would be higher than anticipated. The Government
determined that the only option, which satisfied all its objectives, was the
option to increase of the appropriation with the Act.
The amendment
proposed will involve increasing the existing appropriation from $250 million to
$350 million.
C IMPACT ANALYSIS
Government:
The levy will need to stay in place for a
longer period to repay appropriations authorised under section 18 of the Act.
It is anticipated that the period over which levy will be collected will be
extended by approximately three years.
Stevedoring companies and
shippers:
The major stevedoring companies have made a commitment to
absorb the cost of the levy at the rate it is currently imposed. The Australian
Competition and Consumer Commission (ACCC) will report to the Government on the
extent to which the stevedoring companies are honouring their commitment. The
increased appropriation requires the stevedores to absorb the direct cost of the
actual levy payments over a longer period, approximately three years. There are
no additional costs for shippers.
Assessment of
benefits
The Government considers that amending the Act to increase
the appropriation is necessary to ensure that it can fulfil its commitments with
respect to waterfront reform. Increasing the appropriation allows assistance
for reform and restructuring in the stevedoring industry to be provided at no
cost to the taxpayer.
The increased appropriation would ensure that the
Government is able to meet the higher than expected cost redundancies, while
also being able to provide funding to those stevedores seeking to introduce non
redundancy related reforms. Finally, the increased appropriation would ensure
that the Government can meet the levy collection administrative costs from the
appropriation.
D OTHER REQUIREMENTS: CONSULTATION
The proposal to increase the appropriation has been developed within the
Budget framework.
E IMPLEMENTATION AND REVEIW
The
recommended approach will be implemented via the proposed amendment to
subsection 18(2) of the Act, increasing the amount the Minister may authorise
under from $250 million to $350 million.
It remains the
Government’s intention that after all funds authorised with respect to
section 18 have been recovered that the levy will cease.
The Act does not
include a “sunset” date by which time the levy must be terminated.
The Government is committed to reviewing the levy legislation and the
levy rate within three years of the commencement of the Act.
NOTES ON CLAUSES
The short title of the Act is to be the Stevedoring Levy (Collection)
Amendment Act 1999.
The Act will commence on the day it receives Royal Assent.
Each Act that is specified in a Schedule to this Act is amended or
repealed as set out in the applicable items in the Schedule.
Items 1 – Subsection 18(2)
The Stevedoring levy (Collection)
Act is amended by omitting “$250 million” and substituting
“$350 million”.