The 2016 consultation paper—Cost recovery for services under the National System for Domestic Commercial Vessel Safety invited comment on two proposed models for a full cost recovery levy, and fees for service—to offset the costs associated with AMSA delivering national system services from 1 July 2017.
Consultation was open between August and October 2016 and received over 600 individual responses.
Initial response from Australian governments—2016
Following the industry consultation, in late 2016 Australia’s Transport Ministers extended the start date of national service delivery by AMSA to 1 July 2018, to allow more time to address the issues raised by industry.
In early 2017 AMSA undertook further economic analysis to build a more detailed picture of the domestic commercial vessel industry to inform future cost recovery arrangements.
Summary of feedback
The 2016 consultation focused on two options for full cost recovery levy models. The response from industry was that full cost recovery would negatively impact owners and operators across the domestic vessel industries. They were not receptive to either of the proposed levy models although they remained strongly supportive of a national approach to safety.
Concerns were around seven key themes:
- cost increases and impact on industry
- government subsidisation versus full cost recovery
- privatisation of survey services
- service delivery arrangements
- safety implications
- industry sustainability and wellbeing.
Australia’s Transport Ministers have now considered the views of industry, informed by additional analysis and modelling, and agreed to provide funding to support operators and crew in transitioning to new service arrangements. The additional funding will give industry time to adjust to a gradual increase in costs.
At the same time AMSA has been preparing to deliver services from 1 July 2018.
Following is an overview of the main themes from the consultation and how issues raised have been addressed: