Tasmanian Freight Equalisation Scheme expanded to level the playing field for state’s exporters

The freight equalisation scheme, which takes some of the sting out of shipping goods across Bass Strait, has been given a boost.

Changes to the Tasmanian Freight Equalisation Scheme have been announced. Picture: AAP/Ellen Smith

A BOOST to the Tasmanian Freight Equalisation Scheme has been described as “great news for Tasmania.”

The scheme was established almost 40 years ago to provide Tasmanian industries with equal opportunities to compete in other markets by reducing the cost of transporting freight across Bass Strait for shippers who cannot use road or rail to get their goods into mainland markets.

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The changes, announced by the Assistant Minister to the Deputy Prime Minister Andrew Gee, will see the scheme expanded to include new funding for goods brought into Tasmania via an Australian port, when the product is not available in this country.

The 2016 TFES extension will also become permanent and the payment process time will be reduced from 35 to 30 days.

The government will also increase funding assistance for transporting high-density goods to and from the mainland — subject to a review.

In a joint statement, Tasmanian Liberal Senators Jonathon Duniam, Eric Abetz, Richard Colbeck, Claire Chandler and Wendy Askew, welcomed the changes.

“The Tasmanian Liberal Senate Team has worked hard to secure this latest boost to the Freight Equalisation Scheme to ensure Tasmanians have the level playing field that they deserve,” they said.

“Being an island state brings so many competitive advantages, and it is not fair that these gains should be lost in Bass Strait.

“These changes will bring huge benefits to our manufacturing, mining, forestry, agriculture and fisheries sectors, driving more growth in the Tasmanian economy.

“This will unlock even more potential for greater investment, more jobs and expanded international markets.”

The major beneficiaries of the changes will be the manufacturing, mining, forestry, agriculture processed food, fisheries and dairy industries.

Around $150 million was paid out last financial year, a figure expected to rise to $175 million by 2021/22.

Originally published as Tasmanian Freight Equalisation Scheme expanded to level the playing field for state’s exporters