Breathing life into our shipping industry

With a new focus on reducing carbon emissions and finding energy efficient methods to transport goods, coastal shipping has always been the logical and obvious answer for an island nation like ours.

The recent introduction of the Government's new Sea Change draft strategy, which proposes to increase the use of maritime transport, is a very welcome initiative in New Zealand First's view.

For a long time now, New Zealand First has been an ardent campaigner for energy efficient shipping services, and the proposal to require at least 30 percent of all inter-regional freight to be carried by coastal shipping by the year 2040 is a positive step forward. For years now the governments of New Zealand have been blind to the plight of the New Zealand shipping industry which has been allowed to slowly bleed to death.

Both National and Labour governments have literally taxed our shipping industry out of the water, while foreign operators servicing this country's trade all work under favourable tax regimes.

It is about time the Government did something positive for our shipping industry.

With the amount of freight that must be moved around New Zealand expected to double over the next decade, pressure on the existing transportation system and network will be strong.

Moving some domestic freight by ship makes huge sense in an island country like ours. Coastal shipping allows both cost savings and environmental benefits which are not being realised now. We can reduce congestion on the roads and reduce environmental impacts. The objective for any shipping strategy must be to promote a level playing field for coastal shipping in competing with other transport modes.

This is why New Zealand First is welcoming the proposal to remove barriers to coastal shipping interests accessing Government funds under the new Sea Change strategy. We want to be sure, however, that this will be new money and won't come out of the Land Transport Fund.

Addressing the need for Government agencies and the sector to work together to increase the supply of skilled workers is also a positive initiative.

In addition to this, the strategy proposes to establish a Maritime Liaison Unit (MLU) within the Transport Ministry to create a visible focal point for the coastal shipping sector; and to emphasise the need for information gathering to provide a clear picture of services, their performance and required improvements. All this is very good, but thus far, Sea Change is only a draft report, seeking feedback. There are no specific details on funding method, amount, qualifying criteria or even when it will be implemented.

New Zealand First would like it to be more positive.

In order to ensure that there is a level fiscal playing field between New Zealand ships and foreign operators, we would like to see the strategy extended to include our own favourable tax regime, encouraging owners and 'would-be' owners into shipping. We tend to favour the tonnage tax regime similar to that adopted in Britain. Under this system there are no handouts, the owner/operators simply pay a minimum pre-determined level of tax. In return they are obliged to comply with specified registration, employment and training regulations.

All vessels would have to be registered in New Zealand and coastal ships would have to be fully manned by New Zealand crew, from the lowest rating to the Captain. Vessels trading in the South Pacific and internationally could have more flexible arrangements.

This is not unique policy, on a worldwide basis. New Zealand and Australia, and possibly one other, are the only countries in the OECD which do not have favourable regimes for their shipping.

When it comes to shipping we are at the mercy of the world. We have barely a toe in the water and freight rates are climbing. In short, we have nothing to lose but everything to gain with the new Sea Change strategy. Let's hope the Government really does start to walk the talk and ensure that they do all they can to breathe some life into an industry that has been torn apart by political neglect.

Peter Brown MP
Deputy Leader