The Federal Government has supported the Productivity Commission's recent finding that there is scope for towage services in Australia's ports to be provided more cost effectively.
The Deputy Prime Minister and Minister for Transport and Regional Services, John Anderson, and the Parliamentary Secretary to the Treasurer, Senator Ian Campbell, today released the Federal Government's response to the Commission's report, Economic regulation of harbour towage and related services.
"In the interests of ensuring Australia gets the most efficient and effective service from its ports, the Government asked the Productivity Commission to review the harbour towage sector," Mr Anderson said.
"The Government has accepted the Commission's recommendations, in particular the view that there is scope for towage services to be provided more cost effectively.
"However, if there is to be competitive tendering by port authorities for harbour towage - as the Commission recommends - it is essential that my state and territory counterparts put in place the necessary safeguards to ensure the integrity of the process.
"Tendering must be transparent and free from conflict of interest if it is to work.
"I will continue to work closely with the shipping industry and others to monitor developments in the Australian tug fleet and the adequacy of salvage resources."
Other recommendations in the report included not renewing 'declared' services which expired under the Prices Surveillance Act on 19 September 2002 and limited monitoring of harbour towage charges.
Senator Campbell said the report offered a way forward for state and territory jurisdictions on towage.
"It is important that any implementation of the recommendations are approached with the necessary forethought to ensure the towage sector provides an efficient and effective service," he said.
Media contacts:
Wayne Grant (Senator Campbell's office) 02 62773955 / 0407 845280
or
Paul Chamberlin (Mr Anderson's office) 02 62777680