IF SUCCESSFUL in the yet-to-be-called federal election the Liberal National Coalition will launch an enquiry into the Tasmanian Freight Equalisation Scheme and provide $65 million of “relief” while the review takes place.
Opposition leader Peter Dutton, in pre-election mode on Tasmania’s North West Coast on Friday [21 March] stood with shadow transport and infrastructure minister Senator Bridget McKenzie and local business representatives to make the announcement.
“We know that because of the cost of freight, there is an inhibitor – if you like, a wet blanket – over Tasmanian industry and the ability to export the market to get it to planes and to get it to Asia quickly; particularly if you’re talking about a perishable product,” he said.
The review itself would be “stood up” in the first 100 days of office and is expected to cost $3 million. Mr Dutton said $62 million would be allocated to provide interim support for Tasmanian companies during the review period.
ACM reported Senator McKenzie said this move would “future-proof” TFES and would even the playing field between Tasmanian businesses and those on the mainland.
A Senate Select Committee, chaired by independent Tasmanian senator Tammy Tyrrell, launched an inquiry into the TFES in August last year and reported back just before Christmas, making five recommendations.
4.17The committee recommends that the Australian Government undertake a review of the Tasmanian Freight Equalisation Scheme with consideration given to:
- the original policy intent of the Scheme and whether it remains fit for purpose;
- options to alleviate the freight cost disadvantage incurred by shippers of eligible non-bulk goods between Tasmania, inclusive of the Bass Strait islands and the mainland; and
- the rates of assistance available and the class scale system.
4.18The committee recommends that, in the review of Government Business Enterprises currently being conducted by the Tasmanian Government, the following factors be considered in consultation with key port stakeholders:
- the primary role of TasPorts be; to provide the most efficient and cost effective facilitation of trade; and
- the role of TasPorts as a shipping operator given the National Competition Policy complications and additional costs generated.
4.19The committee recommends that Services Australia develop clear and succinct guidance material and support services, including audiovisual user guides and instructions, and a dedicated phone line, to support claimants to better understand their likely eligibility under the Tasmanian Freight Equalisation Scheme to lodge accurate and timely claims.
4.20The committee recommends that Services Australia develop an online claims calculator tool with the functionality to estimate the approximate value of prospective claims to assist prospective claimants to better understand their likely eligibility under the Tasmanian Freight Equalisation Scheme.
4.21The committee recommends that the Australian Government commission the Australian Competition and Consumer Commission to review the competitiveness of trade on Bass Strait and to the Bass Strait islands, considering both sea and air freight, including the rationale behind commodity pricing for the fresh produce sector.
In releasing the report Senator Tyrrell said: “The evidence provided to this inquiry has convinced the committee that action is required. We can see how improving the TFES will make a real difference for Tasmanian businesses and the economy. I hope the Australian Government will accept the committee’s recommendations and make the necessary changes. It’ll mean Tassie businesses aren’t worse off than their mainland counterparts because of a stretch of water.”
To date the Federal Government has taken no action in response to the Select Committee report, although it did mage some adjustments last year to assist Bass Strait island shippers stricken by drought.
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