Tasmanian Minister for Business, Industry and Resources Eric Abetz has used the upcoming Christmas period as an opportunity to remind Prime Minister Anthony Albanese of the need to make significant alterations to the Tasmanian Freight Equalisation Scheme (TFES).
The Tasmanian government continued to lobby the federal government to guarantee no Tasmanian business will be left worse off under the scheme, which is once again currently under review.
Tasmania’s status as Australia’s only island state means the bulk of its freight must be moved by sea, as it has no immediate access to rail or road options in order to move goods around the country.
Abetz says the flow-on effect of Tasmania’s reliance on sea freight continues to hit the state’s businesses.
“Sea freight is how we move 99 per cent of our goods, across one of the most expensive stretches of water to move goods and people,” Abetz says.
“This has a flow-on effect that impacts the cost of doing business and the cost of living.
“Shipping has inherently high fixed costs across short distances, which is expensive when compared with road or rail transport, and Tasmania does not have the luxury of these cheaper alternatives.
“There have been a number of inquiries into the TFES over its near-50-year existence. As a result, we will continue to take the fight to Canberra advocating for a no-worse-off guarantee.
“With nine sleeps until Christmas, the Prime Minister has a chance to put the present of TFES certainty under the tree, a gift not even the Grinch would withhold.”
A key part of the current inquest into the TFES is the fact assistance rates for Tasmania’s farmers and agribusinesses have not changed since 1998 despite rising costs in the almost three decades since.
“It is unacceptable that TFES assistance rates for our farmers and agribusinesses have not changed since 1998 and do not reflect increasing Bass Strait shipping costs, the problem exacerbated further in times of feed and fodder shortage from drought,” Abetz continues.
“The government looks forward to the release of the Senate Select Committee’s final report and recommendations that ensure the Scheme continues to offset the freight cost disadvantage for Tasmanian businesses.”
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