8Specification of grant

8 Specification of grant

(1) Subject to this section and section 9, where: (a) a shipowner purchases an eligible ship that has never been commissioned; and (b) the ship becomes an Australian trading ship; a grant is payable to the shipowner in respect of the ship. (2) Subject to this section and section 9, where: (a) a shipowner purchases an eligible ship that has been commissioned but: (i) whose construction was completed within the 5 years immediately before the purchase; and (ii) which was not registered in Australia before the purchase; and (b) the ship becomes an Australian trading ship; a grant is payable to the shipowner in respect of the ship. (3) Subject to this section and section 9, where: (a) a shipowner converts an ineligible ship registered in Australia into an eligible ship by extensively modifying the ship; and (b) after the conversion, the ship is an Australian trading ship; a grant is payable to the shipowner in respect of the ship. (4) A grant is not payable under subsection (1), (2) or (3) to a shipowner in respect of the purchase or conversion of a ship unless: (a) there is a category certificate for the ship; (b) the shipowner has remained the ship’s owner at all times after the purchase or conversion; (c) the ship is in commission; (d) the ship has been an Australian trading ship at all times while it has been in commission after the purchase or conversion; (e) at least one crew has been engaged for the ship; (f) all members of the ship’s crew or crews after the purchase or conversion were Australian residents or members in accordance with an approval under subsection 22(7); and (g) the number of each crew of the ship engaged after the purchase or conversion for a voyage of the ship did not exceed the maximum crew number for the voyage. (5) A grant is not payable under subsection (1), (2) or (3) to a shipowner in respect of a ship unless the shipowner intends to: (a) remain the owner of the ship for at least the 5 years beginning on the payment of the grant; and (b) do all things reasonable to ensure that: (i) while the ship is in commission in those years, the ship will be an Australian trading ship; (ii) while the ship is owned by the shipowner, the ship does not make a voyage so that it falls into a category not specified in its category certificate; (iii) while the ship is owned by the shipowner, all members of its crews will be Australian residents or members in accordance with an approval under subsection 22(7); and (iv) when the ship is on a voyage while owned by the shipowner, the number of its crew will not exceed the maximum crew number for the voyage. (6) Subject to this section and section 9, where: (a) a shipowner modifies a trading ship that was registered in Australia at all times during the period starting on 1 June 1989 and ending on completion of the modification; and (b) the modification consists of or includes structural or equipment changes to the ship solely or principally for the purpose of enabling the ship to be operated with a reduced number of crew; a grant is payable to the shipowner in respect of the ship. (7) A grant is not payable under subsection (6) to a shipowner in respect of a ship unless: (a) the shipowner has remained the ship’s owner at all times since the modification; and (b) the ship is in commission; and (c) the ship has been an Australian trading ship at all times while it has been in commission after the modification; and (d) at least one crew has been engaged for the ship after the modification and the number of that crew or those crews is, in the Secretary’s opinion, consistent with the strategy of the program known as the Shipping Industry Reform Program; and (e) the shipowner intends: (i) to remain the owner of the ship for at least 3 years after the payment of the grant; and (ii) to operate the ship with a crew of a number consistent with the program referred to in paragraph (d).