Newton's Law ?

Newton's Law stipulates " that for every action, there is an equal and opposite reaction. "   That will be fully illustrated when a new law affecting coastal shipping in Australia come into effect.

This new law requires ships that are manned by foreign crews to be registered in Australia - and to pay Australian level wages.  In particular, this will affect the ships that transfer iron ore from Port Hedland in Western Australia, to the Bluescope steel plant here at Port Kembla.

Freight rates will rise by at least sixteen percent, slapping an additional burden on Australian steel making costs - and making us less competitive with imports from low labour cost countries.

It would be hard to argue against the principles involved in this law change.  World shipping is a highly competitive industry and ship owners crew their ships with people from countries with the lowest wage structures.   As a result, there are few Australian ships, with Australian crews  sailing the world's seas.   International shipping sails under what is called " flags of convenience " and their crews come from the world's poorest countries.

This new Australian law will not apply to international ships bringing cargo's from overseas to Australian ports because we can not insist on extending our laws to other countries - but it will apply to ships that service the local trade between ports within this country.

Just as Australia will not allow manufacturers to import labour from low wage countries - and pay those same low wage rates when these people work here in Australian factories,  the people who crew ships that work exclusively between Australian ports - but are only paid the wage rate of their country of origin - are exactly in that situation.    If a ship only travels back and forth between two Australian ports, then it's crew is part of the Australian workforce - and should be paid accordingly.

Unfortunately, that is where Newtons Law delivers the " equal and opposite reaction " .

In delivering some foreign crews from penury and exploitation, we are condemning other Australians to job jeopardy when we increase the cost of procuring the raw materials they need to make a product which can survive in the market place.

Sadly, we can not have the best of both worlds !