The Tasmanian Government has welcomed an inquiry into the Tasmanian Freight Equalisation Scheme (TFES).
The TFES, according to the Tasmanian Government, helps Tasmania’s businesses compete with businesses from other parts of Australia.
Yet, according to Minister for Business, Industry and Resources, and Minister for Transport, Eric Abetz, successive amendments to the scheme overtime have created some “apparent inconsistencies” in its scope and operations.
With reliable, affordable transport across Bass Strait being critical to the Tasmanian economy and community, Abetz revealed the Select Senate Committee will consider the treatment of the Bass Strait Islands.
“As an island state, Tasmania relies heavily on sea freight and the TFES is vital to placing Tasmanian businesses on a level playing field with the rest of Australia,” he said.
“The Scheme has been in place for almost 40 years and has been the subject of a number of inquiries over that period.
“There is no doubt that Bass Strait shipping has undergone considerable change in that time, with significant increases in service frequency and capacity.”
Abetz said that the Government welcomed the inquiry as an opportunity for all Tasmanian stakeholders to provide input and to share perspectives on where improvements can be made to the benefit of all users.
An important part of the 2030 Strong Plan for Tasmania’s Future, he said, is to back local communities so they can grow their economies, and create jobs for Tasmanians to work and raise their families.
“It will always be the Tasmanian Liberal Government’s position that Tasmanian businesses should be no worse off under any changes to the Scheme and we call on the Federal Labor Government to commit to a no-worse off guarantee,” he said.
Minister for Primary Industries and Water, Jane Howlett, believes Tasmanian farmers and producers will welcome the inquiry as the scheme had “simply not kept up with rising costs”.
“Agribusinesses and producers and their representatives like TasFarmers have expressed their strong concerns to me that TFES assistance rates have not changed since 1998 and do not reflect increasing Bass Strait shipping costs,” she said.
“This has become increasingly clear during the current feed and fodder shortage due to the drought conditions.
“I have also been advised that accessing the scheme is complex, and some business owners must engage a consultant to help them understand their entitlements and submit claims for assistance.”
In other news, Qube has acquired Western Australian integrated transport, logistics and storage business, Colemans.
The post Senate to review Tasmanian freight scheme appeared first on Trailer Magazine.