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Chairman's Report

AMSA, 15th Annual Report, 2004 - 2005

During 2004-2005, AMSA has been undertaking important developments in a number of areas that will have significant impacts on our future capabilities.

Financially, AMSA continued to demonstrate responsible marshalling of its resources resulting in another surplus at 30 June 2005. Following a 15 per cent reduction in AMSA’s regulatory functions and aids to navigation levies from 1 July 2004, levy receipts declined overall for 2004-2005, despite the higher level of shipping activity arising from strong demand in the resource sector. In view of the forecast trend in shipping activity in the current financial year, the levy rates have been maintained but will be closely monitored by the Board.

Another welcome addition to AMSA’s Community Service Obligation funding of $54.7 million over the next four years was announced in the 2005 Federal Budget to further enhance AMSA’s search and rescue capability. The funding is supporting the contracting of a further four turbine engine aircraft dedicated to search and rescue operations. Three aircraft are to be positioned at strategic locations around Australia and the fourth is to be held in reserve, with any spare capacity being available for use by other government agencies.

This funding package builds on the $18.9 million allocated in the 2004 Federal Budget, which has been used during 2004 to contract a turbine engine aircraft in Darwin dedicated to search and rescue, with the new service commencing in February 2005 for the benefit of northern Australia. AMSA also is upgrading its Rescue Coordination Centre to an Emergency Response Division Centre, incorporating sophisticated communication and coordination systems. The aim is to strengthen AMSA’s interaction with aircraft and other search and rescue agencies and provide a multi-disciplinary response to shipping incidents covering search and rescue, pollution response and monitoring of industry operational standards. Fortunately, there were no major ship-sourced marine pollution incidents in Australian waters during 2004-2005.

The International Maritime Organization (IMO) has continued to be the focus of much activity by AMSA officers in contributing to the development and implementation of shipping standards of relevance to Australian interests. A three-year intensive campaign by Australia and Papua New Guinea came to fruition with the IMO approving in July 2005 the extension of the Particular Sensitive Sea Area applicable in the Great Barrier Reef to the Torres Strait. This included the associated protective measures in relation to pilotage and implementation of a two-way shipping route, which will lead to unprecedented improvement in ship navigational safety in this environmentally sensitive region.

The IMO also endorsed the upgrading of the existing mandatory ship reporting service operative in the Great Barrier Reef and Torres Strait to a Coastal Vessel Traffic Service, which came into formal operation from 1 December 2004. The Coastal VTS integrates technological and communication advances to vastly improve the tracking of ships in these navigationally challenging waters and providing maritime safety and navigational information to vessels transiting the region with the aim of better informed shipboard decision making.

In November 2004, AMSA was part of the Australian delegation to the second Joint Ministerial Conference on Port State Control held in Canada. The Joint Ministerial Declaration issued from the conference provides a framework for new global initiatives aimed at eliminating substandard shipping. AMSA continues to lead the world with its risk-based ship inspection targeting system and will be contributing in regional forums to measures that further improve the port State control inspection system and increase public exposure of substandard ships and related parties.

During 2004-2005, AMSA has been involved in providing technical and operational advice to the portfolio Department in developing a national approach to emergency towage around the Australian coast in consultation with the State and Territory marine administrations. This includes a dedicated vessel for the northern Great Barrier Reef and Torres Strait. It is envisaged that AMSA will have additional responsibilities in relation to the coordination of the longer-term arrangements being developed for this national emergency towage capability.

I am very grateful to my fellow Board members for their support during the year, particularly the Deputy Chairman, Captain John Paine. The Board has continued to progress a number of corporate governance initiatives, which are detailed in our Report of Operations at the back of this report. These included the application to AMSA of the governance principles recommended in the Prime Minister’s Review of Corporate Governance of Commonwealth Statutory Authorities and Office Holders, released in August 2004.

In late 2004, the Minister announced Captain Paine’s reappointment to the Board for a further term along with Mr Tony Hyams, who kindly agreed to continue acting as the Chairman of the Board Audit Committee. We were delighted to learn of an Order of Australia award being made in the Queen’s Birthday 2005 Honours to Mrs Virginia Chadwick AO, which included recognition of her service to conservation and the environment in relation to the Great Barrier Reef. This would extend to her contribution to these areas in her service as a member of the AMSA Board.

The AMSA Board welcomed the Minister’s advice in August 2004 that he was exercising his power under the AMSA Act to specify an office in the portfolio Department whose occupant would become an ex officio member of the AMSA Board. Deputy Secretary,
Ms Lynelle Briggs, initially occupied this office until her appointment in November 2004 as the Australian Public Service Commissioner. Deputy Secretary, Mr Peter Yuille, then assumed this ex officio Board position until he left the Department in June 2005 prior to becoming Executive Director of the Australian Quarantine Inspection Service. The Board appreciated the portfolio insights brought by Ms Briggs and Mr Yuille to the Board’s deliberations. Mr Andrew Wilson assumed this Board position in August 2005.

I wish to record AMSA’s appreciation of the significant support received from the Hon John Anderson MP during his six-year tenure as our portfolio Minister. We are very grateful for his guidance and leadership, which resulted in several substantial advances in maritime safety and environment protection. We look forward to continuing close working relations with the new Minister for Transport and Regional Services, the Hon Warren Truss MP, and his office.

We also were grateful for the portfolio leadership of Mr Ken Matthews AO, who left the role of Department Secretary in November 2004 to head the National Water Commission. The new Department Secretary, Mike Taylor, has sought to continue the cooperative relations that AMSA seeks to maintain with the portfolio Department.

AMSA is progressing several infrastructure projects and systems improvements to add to our capability as the national maritime safety agency with our policy of fostering continuous improvement and best practice in public sector service delivery. The Board acknowledges the vital role played by AMSA’s staff in realising this aim. We appreciate their high degree of dedication and professionalism and seek to encourage their ongoing level of achievement into the 2005-2006 financial year and beyond.

EDWARD G. ANSON, AM
Chairman
September 2005

November 2005