Round-up

Key Points:

Federal: Ballast water regulation

A proposed regulation requiring all ships entering Australian ports to exchange their ballast water at sea may have significant impacts on the domestic shipping industry. The Centre for International Economics has produced a Regulation Impact Statement ("RIS") which examines the impact of implementing a national ballast water management system applicable to ships moving between Australian ports.

The national system is aimed at meeting obligations under the 2004 Convention for the Control and Management of Ships' Ballast Water and Sediments. This Convention is not in force and the implementation of a National Ballast Water System would facilitate Australia's ratification of the Convention.

All international ships arriving in Australian ports are required to comply with ballast water exchange requirements under the Convention. The Australian Government plans to extend the requirements to domestic shipping from 1 July 2007. While there will be considerable benefits such a reduction in the introduction of non-indigenous marine organisms and the flow-on benefits to the environment and marine tourism industry, they will not be without cost. Some of the costs identified in the RIS include delays in shipping, increased capital costs and increased administrative costs caused by the requirement to keep ballast logs and complete surveys and certifications. Other factors to be addressed include safety at sea during ballast water exchange, management of ballast sediments and the cost of policing and enforcement.

The proposed system considers a number of options for ballast exchange. Option one proposes a mandatory exchange requirement whereby all ships would exchange ballast water regardless of the assessed risk of contaminants or voyage length. This option would have the highest associated costs and currently applies to all arriving international ships. Option two contemplates a risk-based trigger under which only those ships assessed as presenting a risk would be required to exchange ballast water at sea.

A national regulatory system on ballast water is preferred to a state-based system and the difficulties that flow from differing state jurisdictions requirements. Although requiring both Federal and State legislation to implement, the national system will facilitate the movement of ships between Australian ports by providing certainly for the shipping industry

- Rachel Baird