THE Australian Industry Group has released its submission to the Productivity Commission’s inquiry into Australia’s Maritime Logistics System.
The submission emphasises that any issue at a port has the capacity to impact the nation’s supply chains and business activity.
Unpacking the identified issues, it highlights problems relating to infrastructure limitations around the use of ultra-large container vessels in Australia and the cost of port and shipping operations.
The submission also notes the absence of appropriate regulatory arrangements preventing port operators from determining the needs of Australian importers and exporters, and a reported shortage of skilled workers in the shipping industry.
Ai Group chief executive Innes Willox said businesses in all industries would benefit from addressing the identified problems which are reportedly impeding the performance of Australian ports.
“As an island nation Australia’s economy heavily relies on its maritime ports. Any issue at the ports can significantly impact countrywide supply chains and business activity,” he said.
“As shown by the ACCC’s most recent annual Container Stevedore Monitoring Report, problems with Australia’s maritime logistics system have continued to worsen and there are acute supply chain pressures caused by the COVID-19 pandemic.
“Given how closely Australia’s economy relies on maritime ports, these issues require urgent and swift action to ensure that our supply chains can function productively, competitively and resiliently, now and into the future.”
With regard to industrial relations matters, the group’s submission argues that amendments should be made to the Competition and Consumer Act 2010 and the Fair Work Act 2009 to re-draw the boundary between competition laws and workplace laws.
It said such a boundary would prevent enterprise agreements from containing provisions which restrict or hinder the acquisition or supply of goods or services by a business.
The submission also recommends a Ports and Shipping Industry Code to address the restrictions in waterfront enterprise agreements which drive up costs.
“The restrictive work practices that exist on the waterfront are due in large part to the activities of the Maritime Division of the CFMMEU (MUA),” the submission argues.
“The Productivity Commission should recommend industry-specific reforms aimed at safeguarding the Australian community from the unreasonable union conduct that the MUA frequently engages in.”
Also, the submission suggests the Stevedoring Industry Award 2020 is in urgent need of modernisation to align with the manner in which ports need to operate.
“The Productivity Commission should recommend that the federal government make a formal request to the FWC that the Commission undertake a review of the Stevedoring Industry Award to modernise its provisions,” the group said.
“There would be merit in the government being an active participant in that review. The review should consider the interests of users of ports, and not just the interests of stevedoring companies and their employees.”
