The Claim
“Told an Australian company to sack their Australian employees and hire foreigners, in order to remain competitive under the government's new shipping deregulation rules.”
Original Sources Provided
✅ FACTUAL VERIFICATION
The claim refers to allegations made by North Star Cruises Australia (NSCA), a Western Australian luxury cruise operator, in September 2015. According to the company's submission to a Senate inquiry, a senior Department of Infrastructure and Regional Development official allegedly advised NSCA to sack its Australian crew and hire foreign workers to remain competitive under the Coalition's proposed shipping deregulation legislation [1].
The specific advice allegedly given included: (1) taking their ship "True North" off the Australian Shipping Register, (2) re-registering it in a foreign country, (3) laying off Australian crew (except captain and chief engineer), and (4) hiring cheaper foreign crew not governed by Australian labour laws [1].
However, this allegation was disputed. The Department of Infrastructure and Regional Development issued a statement denying such advice was provided, saying "The department did not provide this advice" [1][2]. Prime Minister Tony Abbott also publicly denied the allegations as "just not true" [2].
The Coalition's proposed Coastal Shipping Act amendments would have allowed foreign-flagged vessels to avoid paying Australian wages and conditions if operating in Australia for less than 183 days (roughly six months) per year [1][2].
Missing Context
The claim omits that the allegations were disputed and unverified. The incident represents one company's claims against a government department's denial - there was no independent verification or finding that the advice was actually given [1][2].
The policy context is important: The Coalition argued their reforms were necessary to reverse damage done under Labor's 2012 Coastal Trading Act. Abbott stated that under Labor (2007-2013), Australia's coastal shipping fleet halved from 30 to 15 ships, costs increased by almost 65%, and Australian freight carried by shipping dropped from 27% to 17% [2].
Labor's 2012 legislation already allowed foreign crews under certain conditions. The Coastal Trading (Revitalising Australian Shipping) Act 2012, passed by the Gillard government with Maritime Union of Australia support, allowed temporary licenses for foreign ships with foreign crews [3]. Under this law, foreign crews could be paid under "existing international arrangements" (approximately US$2/hour) for the first two domestic voyages before Australian award wages applied [3].
The broader shipping industry decline predated the Coalition. The Australian shipping industry had been declining for years due to high operating costs compared to international competitors, not solely because of any single government's policies [2][3].
Source Credibility Assessment
The original source is The Guardian, a mainstream media outlet with center-left political leaning. The article reports on NSCA's submission to a Senate inquiry and includes both the company's allegations and the government's denial, presenting a balanced account [1].
The claim itself relies on uncorroborated allegations from a single company representative (Bill Milby) against official government denials. No Senate inquiry finding, court ruling, or independent investigation confirmed the advice was given [1][2].
Labor Comparison
Did Labor do something similar?
Search conducted: "Labor government shipping policy foreign crew comparison"
Finding: Labor's 2012 Coastal Trading Act already established the framework allowing foreign crews on temporary licenses at rates far below Australian wages. The Gillard government's legislation permitted foreign crews to work at approximately US$2/hour (roughly A$3.11) for the first two voyages under temporary licenses [3]. This was confirmed by an academic fact-check in The Conversation, which found that "foreign seafarers working for roughly US$2 an hour can work on ships moving cargo between Australian ports" under Labor's 2012 legislation [3].
Furthermore, under Labor's watch from 2007-2013, the Australian coastal shipping fleet declined significantly (from 30 to 15 ships) and freight carried by shipping dropped from 27% to 17% [2].
Comparison: Both parties supported legislation allowing foreign crews under specific conditions. Labor's 2012 Act established the temporary license framework; the Coalition's proposed amendments would have extended some of these provisions. The structural challenges facing Australian shipping (high costs vs. international competition) persisted across both governments.
Balanced Perspective
While critics like the Maritime Union of Australia and Opposition transport spokesman Anthony Albanese attacked the Coalition's proposed changes as "unilateral economic disarmament" that would destroy Australian shipping jobs [1][2], the government maintained they were restoring conditions that operated under the Howard government and reversing Labor's "job-destroying, cost-inflating coastal shipping regime" [2].
The key context is that Australian shipping faced severe competitive disadvantages against foreign operators due to higher labour costs, regulatory requirements, and tax obligations (payroll tax, superannuation, workers compensation, training requirements) that foreign vessels did not face [1]. Both Labor and Coalition governments grappled with this structural problem - Labor's 2012 Act attempted to balance industry viability with Australian job protection through temporary licenses; the Coalition's amendments sought to further reduce what they viewed as excessive red tape.
This was not unique to the Coalition - both major parties have struggled to maintain Australian shipping competitiveness against international operators paying significantly lower wages. The claim focuses on disputed allegations against the Coalition while omitting that Labor's own legislation already permitted foreign crews at roughly $2/hour under temporary licenses.
PARTIALLY TRUE
4.0
out of 10
The core allegation - that a government official advised an Australian company to sack Australian workers and hire foreign crew - was made by North Star Cruises Australia in a formal Senate submission [1]. However, this was disputed by both the Department of Infrastructure and Regional Development and Prime Minister Tony Abbott, with no independent verification or finding confirming the advice was actually given [1][2].
The claim also omits critical context: (1) Labor's 2012 legislation already allowed foreign crews at roughly $2/hour under temporary licenses [3], (2) the Australian shipping industry had been declining under both parties due to structural cost disadvantages, and (3) the Coalition's proposed changes were framed as restoring Howard-era conditions rather than a radical departure. The framing implies a unique Coalition failing when similar policies existed under Labor.
Final Score
4.0
OUT OF 10
PARTIALLY TRUE
The core allegation - that a government official advised an Australian company to sack Australian workers and hire foreign crew - was made by North Star Cruises Australia in a formal Senate submission [1]. However, this was disputed by both the Department of Infrastructure and Regional Development and Prime Minister Tony Abbott, with no independent verification or finding confirming the advice was actually given [1][2].
The claim also omits critical context: (1) Labor's 2012 legislation already allowed foreign crews at roughly $2/hour under temporary licenses [3], (2) the Australian shipping industry had been declining under both parties due to structural cost disadvantages, and (3) the Coalition's proposed changes were framed as restoring Howard-era conditions rather than a radical departure. The framing implies a unique Coalition failing when similar policies existed under Labor.
Rating Scale Methodology
1-3: FALSE
Factually incorrect or malicious fabrication.
4-6: PARTIAL
Some truth but context is missing or skewed.
7-9: MOSTLY TRUE
Minor technicalities or phrasing issues.
10: ACCURATE
Perfectly verified and contextually fair.
Methodology: Ratings are determined through cross-referencing official government records, independent fact-checking organizations, and primary source documents.