The Tasmanian Freight Equalisation Scheme is a program that provides financial assistance to Tasmanian businesses for shipping eligible non-bulk goods by sea across Bass Strait.
The goal of the scheme is to help Tasmanian industries compete with businesses on the Australian mainland by offsetting the cost of sea freight, which is the only option for many Tasmanian shippers.
With the increased funding, businesses will now get higher assistance rates from the federal government of up to $1,070 per TEU (Twenty-Foot Equivalent Unit, a standard-sized shipping container) under the scheme’s domestic component.
For goods being shipped from Tasmania to the world, and being transferred from one ship to another at mainland ports in the process, the flat rate of assistance will increase to $875 per TEU. The same rate will apply to international goods being imported to Tasmania via a mainland port.
“We can’t build a bridge between Tasmania and the mainland, so this scheme is our way to ensure Tassie industries are just as competitive as their mainland partners and can export their products to the rest of the world,” federal transport and infrastructure minister Catherine King says.
“This additional $95 million investment will mean more Tassie timber building homes in Sydney, more fish on plates in Melbourne and more metals and resources crossing the Strait, without Tassie business being financially penalised by distance.”
Agriculture, fisheries and forestry minister Julie Collins says the increased funding will specifically help support Tasmanian farmers and producers.
“Tasmanian farmers and producers deserve a level playing field and this investment will deliver that,” Collins says
“Together with the comprehensive review that we are undertaking into TFES, this investment will help ensure a bright future for Tasmanian farmers and producers.
“Our Government has already delivered $60 million to upgrade Hobart International Airport to boost freight out of our state and this investment builds on this commitment.”
TFES was introduced in 1976 by the Whitlam government and was expanded to include the Bass Strait islands in 2008.
As the scheme nears the end of its fifth decade in operation, the federal government has also committed to commissioning a comprehensive review of TFES to ensure it continues to support Tasmanian businesses into the future.
The review, which will be undertaken this year, will consider whether TFES remains fit-for-purpose and address other recommendations from last year’s Senate Select Committee inquiry.
“Labor introduced TFES, it expanded TFES to cover the Bass Strait Islands, and now, not only are we investing more in TFES but our review will ensure it’s fit for purpose for years to come,” member for Bass Jess Teesdale says.
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