Labor’s $95m Bass Strait freight boost
Federal Labor is announcing its plan to inject cash into subsidies for freight crossing Bass Strait.
Tasmania
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Federal Labor will today announce a $95m boost in subsidies for freight crossing Bass Strait.
The Labor campaign will pledge a 25 per cent increase to the Tasmanian Freight Equalisation Scheme — and an inquiry into how the scheme might work better — topping a Coalition pre-election promise made last month.
The TFES was an initiative of the Whitlam Government to help level the playing field – or sea freight disadvantage – between mainland and Tasmanian businesses by reducing the cost to the equivalent distance of road transport.
In 2023–24, a total of $181.7 million was spent under the scheme although a Senate Inquiry found the scheme’s reimbursements were falling behind actual costs.
Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King said the increase would be paid over two years and would cover north and southbound, imported and exported goods, as well as intrastate aspects of the scheme.
“We’re backing Tasmanian communities and businesses by boosting the TFES payment by 25 per cent for the next two years — so they get a fair go,” she said.
“Unlike their mainland counterparts who can use road or rail, Tasmanian businesses rely on the sea.
“We’re providing support now and commissioning a review to modernise the system for the future.”
Goods covered by the TFES include those used in critical businesses across Tasmania, such as manufacturing, mining, agriculture, forestry and fishing.
Minister for Agriculture, Fisheries and Forestry Julie Collins said Tasmania is the only state that is heavily dependent on interstate sea transport links.
“This boost to TFES is a huge win for Tasmanian farmers and producers and will help support jobs and critical industries across our state,” she said.
“Labor will always back our state’s farmers and producers and today’s commitment is another example of that.
“Our government has already delivered $60m to upgrade Hobart International Airport to boost freight out of our state and today’s announcement builds on this commitment.”
The review will consider the Committee’s further recommendations, including the Bass Strait Passenger Vehicle Equalisation Scheme, and how to modernise the system to ensure it best serves Tasmanians including reducing administrative burden for more efficient shipping.
Labor Candidate for Lyons Rebecca White welcomed the funding announcement.
“Our industries and primary producers are critical for Tasmania, and it’s important our businesses can trade fairly with other states without being disadvantaged by getting across Bass Strait,” she said.
The Liberals have pledged a $65m boost to the scheme and $3m towards an inquiry.
“Mr Albanese has stood by and done nothing while Tasmanian businesses have been punished by Labor’s high inflation and rising shipping costs,” Opposition leader Peter Dutton said.
“The Coalition has a strong track record of ensuring Tasmanian businesses and farmers are not disadvantaged in selling their goods interstate, or exporting to the world – and we plan to continue that.”
Originally published as Labor’s $95m Bass Strait freight boost
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