Commonwealth Numbered Regulations - Explanatory Statements

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SHIPS (CAPITAL GRANTS) REGULATIONS (AMENDMENT) 1991 NO. 412

STATUTORY RULES 1991 No. 412

Issued by the Authority of the Minister for Shipping and Aviation Support

Ships (Capital Grants) Act 1987

Ships (Capital Grants) Regulations (Amendment)

Section 42 of the Ships (Capital Grants) Act 1987 (the Act) provides that the Governor-General may make regulations for the purposes of the Act.

The Act is intended to provide an incentive in the form of a taxable grant for the introduction of more efficient ships into the Australian shipping industry. To be eligible for a grant a ship must comply with certain maximum crew levels specified in the Act which are prescribed according to the category of ship. The Act provides for regulations to create categories where proposed ships do not fit the existing categories.

The Regulations create categories for the ships "Northwest Sandpiper" and "Searoad Tamar", with specified maximum crew levels which have been assessed by the Australian Maritime Safety Authority to be safe and efficient for the operations of these ships. The Regulations also vary the existing category created for the ship "SeaCat Tasmania" to allow it to undertake a wider variety of voyages, within its maximum crew level, than its category currently allows.

The "Searoad Tamar" is one of ANL's new general cargo ships in operation across Bass Strait. The maximum crew level for the ship is 17.

The "Northwest Sandpiper", currently under construction, is a large liquefied natural gas (LNG) tanker which will be dedicated to the export of LNG from Australia's Northwest Shelf Project to major power utilities in Japan. The characteristics of the LNG require the ship to be operated to very high safety. standards and the need to ensure a continuous supply of gas to the Japanese customers means that reliability in the operation of the ship is extremely important. These factors and the specialised nature of the cargo operations of the ship justify the carriage of a larger crew than would be the case on a normal cargo ship. The maximum crew level for the ship is 25.

In the absence of additional categories, the maximum crew level of 21 prescribed in the Act would apply to the "Northwest Sandpiper" and the "Searoad Tamar". Due to their size, design, operational requirements and work practices it is not consistent with the intention of the Act that these ships operate with crews of that size.