Mr TRUSS  (Wide Bay—Minister for Agriculture, Fisheries and Forestry) (9.57 a.m.) —I move:

That the bill be now read a second time.

In July 1996 the government announced that the Civil Aviation Safety Authority, CASA, would conduct a complete review of the civil aviation legislation in Australia, with the objectives of harmonising it with international standards of safety regulation and making it shorter, simpler and easier to use and understand. We are taking a measured and sensible approach to these reforms because we recognise that Australians are conservative about air safety.

The process of review of civil aviation legislation is ongoing. Recent efforts in this regard have been directed at promulgating standards for air traffic services, rescue and fire fighting services and telecommunication services, and reviewing the law in relation to air traffic controller and aircraft maintenance engineer licensing, parachuting operations and aircraft maintenance. The primary purpose of this bill is to make a series of small but significant changes to terminology in the Civil Aviation Act 1988, which will assist in the development of regulations dealing with aircraft maintenance and maintenance engineer licensing.

The proposed legislative changes to the act seek to achieve compliance with standards and recommended practices of the International Civil Aviation Organisation, ICAO, and to harmonise with the requirements of other national airworthiness authorities, NAAs, by removing, wherever practicable, maintenance requirements and terminology currently unique to Australia. The internationally recognised and accepted terms `aeronautical product', `maintenance' and `line maintenance' will replace existing terminology and reflect the requirements necessary for the enabling legislation dealing with aircraft maintenance.

The proposed changes will have no effect on the current aircraft maintenance requirements prescribed by the Civil Aviation Regulations. They will, however, ensure that new Australian regulations harmonise with international standards and practices and promote the maintenance of air safety.

The bill also makes two other important amendments to the Civil Aviation Act. Firstly, the bill gives CASA the function of entering into so-called `Article 83bis agreements' with the NAAs of other countries. Under the Convention on International Civil Aviation, Chicago 1944 (the Chicago convention) a state party to the convention is generally responsible for the safety regulation of aircraft on that state's register, irrespective of where the aircraft is in the world. Some obvious difficulties in administering safety regulations arise when an aircraft registered in one country is operated in another. Article 83bis is a relatively recent addition to the Chicago convention, and enables the transfer of safety regulatory functions from the state of registration of an aircraft to the state of operation of the aircraft, on agreement of both states. The ICAO considers that such agreements should be made between the relevant national aeronautical authorities, as they are administrative instruments of less than treaty status.

Australia ratified article 83bis on 2 December 1994 after amending the Civil Aviation Act by the Transport and Communications Legislation Amendment Act (No. 2) 1993. Importantly a new section 4A was inserted which allows provisions of the Civil Aviation Act implementing the functions under articles 12, 30, 31 and 32 of the Chicago convention:

to be applied to a foreign aircraft identified in an Article 83bis agreement which transfers those functions to Australia; and

to be disapplied to an Australian aircraft identified in an Article 83bis agreement which transfers those functions to another state.

This bill ensures that CASA will have the function to enter into article 83bis agreements on behalf of Australia. Administrative and technical provisions concerning the implementation of these agreements will be covered in regulations to be developed by CASA and my department in consultation with industry.

Taking into account Australia's objective of harmonising with international standards of safety regulation, the ability for Australia to enter into article 83bis agreements should also benefit the Australian aviation industry and the consumer in terms of increased economic opportunities and reduced costs. For example, domestic operators would potentially have greater flexibility and more cost-effective options in operating their aircraft fleets, and in being able to lease aircraft to overseas operators, that are underutilised in Australia during periods of low demand. Australian maintenance organisations could have increased opportunities to carry out work on foreign aircraft that would otherwise have been carried out overseas.

Secondly, the bill adds to CASA's suite of enforcement tools, by giving it the power to accept written undertakings from people in relation to compliance with civil aviation safety legislation. Giving of such undertakings will be completely voluntary—CASA will not have the power to compel the giving of undertakings. However, once a person has given an undertaking, CASA will be able to seek an order from the Federal Court requiring a person to abide by his or her undertaking. The provision is modelled on section 87B of the Trade Practices Act 1974.

Finally, the bill makes amendments to the Civil Aviation (Carriers' Liability) Act 1959 to correct an inadvertent error which imposed a liability on foreign charter operators which is inconsistent with Australia's international obligations under the Convention for the Unification of Certain Rules relating to International Carriage by Air, Warsaw 1929 (the Warsaw convention). The correction ensures that Australia imposes certain liabilities only upon Australian airlines, not foreign.

There will be no anticipated added cost to the budget due to the amendments of the Civil Aviation Act or the carriers' liability act. There will, however, be long-term cost benefits to those aviation industries involved in international trade which will flow from the legislative changes, as Australia's law will reflect the law of major markets for aviation products and services. On behalf of the Minister for Transport and Regional Services, I present the explanatory memorandum to the bill.

Debate (on motion by Mr Horne) adjourned.