The Comptroller-General of Customs has submitted for advice the question as to whether all or any of the following vessels require to be licensed under the Navigation Act:

1. the s.s. Courier and Edina carry passengers and cargo between Melbourne and Geelong;
2. the s.s. Hygeia, Ozone and Weerona carry passengers and cargo between Melbourne and Mornington, Sorrento and other seaside resorts;
3. the s.s. Williamstown (steam ferry) carries passengers between Melbourne and Williamstown;
4. the s.s. Wyrallah carries passengers and cargo between Melbourne and the Gippsland Lakes.

The vessels referred to in paragraphs (a) to (c) apparently come within the definition of 'river and bay ships'. The vessel mentioned in paragraph (d) is engaged in intra-State coasting trade.

It is assumed that all the vessels are 'on the high seas, or in waters which are used by ships engaged in trade or commerce with other countries or among the States' (section 2(1) (b)).

Section 7 provides that a ship shall be deemed to be engaged in the coasting trade if she takes on board passengers or cargo at any port in a State to be carried to and landed at any other port in the same State. The word 'port' is defined as including 'place' and 'harbour'.

It appears that the test provided by section 7 establishes that all the ships mentioned are engaged in the coasting trade.

In my opinion they should, in the absence of a declaration by the Governor-General under section 286, be required to comply with the coasting trade obligations provided by the Act. The general question of the legality of applying those obligations to vessels trading purely intra-State has been already dealt with by me in answer to the Comptroller-General's minute of 29 October 1919.⁽¹⁾

[Vol. 16, p. 346]

(1)See Opinion No.946.