Transport safety commissioner owns shares in company involved in probe

A commissioner of the transport safety bureau responsible for maritime investigations is a director of the parent company of a firm involved in two serious sea incidents being examined by the government body.

The Australian Transport Safety Bureau’s Gary Prosser has recused himself from probes into incidents at the Port of Brisbane involving captains working for Poseidon Sea Pilots because he is a director and owns $100,000 of shares in the entity’s private parent company.

Gary Prosser from the Australian Transport Safety Bureau.

Questions about his dual roles prompted the Albanese government to seek departmental advice on whether the arrangement is appropriate.

The bureau is examining two incidents in May involving the breakaway and near-breakaway of 260-metre ships that drifted from the quay after vessels controlled by Poseidon pilots passed by. Ships that pass too close to a docked ship can cause it to break from its mooring. Sea pilots are skilled mariners who manoeuvre ships through dangerous congested areas such as ports.

Both were classed as serious incidents and the bureau is expected to finish its examination this year.

The Transport Safety Investigation Act states commissioners must not engage in paid work that conflicts or may conflict with their duties without the relevant federal minister’s written consent.

The bureau said the Morrison government provided consent in June 2021, two months after Prosser became a non-executive director of the Australian Maritime Systems Group (AMSG), which owns and operates Poseidon.

A spokeswoman for Albanese government Infrastructure and Transport Minister Catherine King said the minister had “sought advice on the questions raised and won’t be commenting until that advice has been received and considered”.

In a statement to The Age, the bureau said Prosser, who joined in late 2019, received approval from the bureau’s board to join AMSG in May 2021 on the basis that he recuse himself from any matters involving AMSG. His shareholding acts as remuneration for sitting on the board.

“Mr Prosser has no oversight of, or involvement in, the two [bureau] investigations currently under way into ship breakaway incidents at the Port of Brisbane,” the statement said. “Mr Prosser will have no role in relation to any future transport safety investigations involving AMSG or its subsidiaries, as well as transport safety investigations involving commercial competitors to AMSG.

“The [bureau’s] commission therefore is confident that any actual or perceived conflict of interests have and will continue to be appropriately managed.”

But former Victorian Court of Appeal judge Stephen Charles, KC, thought it inappropriate for a safety body commissioner to have an interest in a company operating in a market under the watchdog’s remit.

The Centre for Public Integrity board member said a conflict of interest could exist even though Prosser recused himself from matters directly involving Poseidon, because he could investigate issues involving Poseidon’s competitors in the sea piloting industry, which is relatively small.

“How can someone who is in the position of a watchdog over a group of companies also have a shareholding and directorship in one of those companies?” Charles said.

The Age is not suggesting Prosser has acted improperly, only that he has declared the conflict and the federal government is assessing the matter.

The Morrison government appointee is one of four part-time commissioners at the bureau. He specialises in the maritime industry and is tasked with approving investigation reports before release and monitoring quality and timeliness.

These reports make no-blame findings to determine the cause of unsafe incidents. Most evidence collected during investigations cannot be used in civil or criminal proceedings. However, findings can reflect poorly on companies and dent their reputations, in turn influencing their ability to win contracts.

Prosser is a well-known maritime industry figure who has held high-profile local and international roles in the public and private sectors.

A spokeswoman for AMSG said he was one of the most highly respected and experienced people in global maritime safety. “His career has focused on the betterment of the maritime industry and he has led international change across safety, compliance and environmental issues. He has always met the highest standards of ethical and professional excellence,” the spokeswoman said.

The bureau said Prosser’s co-commissioners had faith in his integrity.

The Age was told by both the bureau and the private company that their responses to its inquiries were formed in consultation with Prosser.

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