THE NEW Zealand Government has rejected a plan by cement supplier Holcim New Zealand to replace its coastal vessel with an imported, foreign-crewed cement carrier.
Holcim had struck a deal with Swiss-headquartered NovaAlgoma Marine Carriers to replace the aging Buffalo with Panama-registered NACC Vega under a charter/swap arrangement that would have seen Buffalo’s local crew made redundant.
The move was strongly resisted by the Maritime Union of New Zealand, which is now claiming vindication after Associate Minister of Transport James Meager today [9 December] declined the application lodged by NACC to carry cement in domestic waters.
“After careful consideration, I have declined NovaAlgoma Cement Carriers’ application for authorisation to operate a coastal shipping service in New Zealand waters,” Mr Meager announced.
“Under New Zealand maritime law, coastal cargo can generally only be carried by a New Zealand ship.
“Foreign ships may carry coastal cargo under certain situations, including using a demise charter to a New Zealand-based operator under New Zealand laws, or if the carriage is incidental in relation to the carriage of international cargo.
“For other uses, an authorisation to carry coastal cargo under section 198(2) of the Maritime Transport Act is required. The intent of section 198 of the act is to protect New Zealand coastal shipping for local commercial interests,” the minister said.
“While authorisations can be granted under section 198(2) ... these are typically for single journeys on New Zealand’s coast to meet a short-term need.
“In this case, I was not satisfied Nova’s application met the requirements of the act. I informed Nova of my decision last night.
“I appreciate there has been a high degree of interest in the outcome of the application.
“The public should have confidence that all authorisations to carry coastal cargo align with the intent of section 198 of the act, and that has been my priority throughout this process.”
Holcim had said it had entered into a contract for NACC to supply “an interim replacement vessel for up to three years” while it investigated building a “modern pneumatic vessel specifically for the local trade”.
“If NACC are unable to supply a suitable vessel to Holcim, road transport is our only interim option, and this will result in considerable supply challenges and additional costs delivering cement to the top of the South Island or Lower North Island,” a spokesperson said at the time.
MUNew Zealand national secretary Carl Findlay said the Minister had made the right decision, which confirmed New Zealand law cannot be ignored and side-stepped by multinational corporations seeking to destroy local jobs through Flag of Convenience shipping.
Mr Findlay said the situation was a clear test on protecting Kiwi jobs, and this decision sends a strong message to Holcim about its obligations to New Zealand.
“In November, Holcim gave a month’s notice of redundancy to 32 skilled New Zealand seafarers crewing Buffalo. Holcim must now accept their plan to replace experienced New Zealand crews with foreign labour has failed.”