Senator Tammy Tyrrell will lead a Senate inquiry into the effectiveness of the Tasmanian Freight Equalisation Scheme

The scheme set up to subsidise the cost of moving freight across Bass Strait by the Whitlam government in the 1970s will be reviewed by the Australian Senate.

A container ship at the Port of Burnie, Tasmania

The Senate will conduct an inquiry into effectiveness of the Tasmanian Freight Equalisation Scheme.

Senator Tammy Tyrrell moved for the inquiry in the Senate on Thursday and be its chair after it was agreed to unanimously.

It will look into the merits and weaknesses of the scheme and if it is currently fit for purpose, whether it has kept up with increasing costs over the past decade and it’s cost and budget.

Senators Tyrrell said it was time for a good look at the operation of the scheme.

“People are sick of pollies talking about things but never taking action. I’ve heard from small businesses and farmers about the issues with the TFES, so I’ve done something about it by setting up this committee,” she said.

Tasmanian independent senator Tammy Tyrrell will lead the Senate review. Picture: Simon Sturzaker

“The cost of living is hitting everyone hard, including small producers.

“They’re dealing with a system that’s hard to use and takes four months to pay them. It’s time Tasmanians get a seat at the table and have their voices heard.”

The committee will hold public hearings across Tasmania. The committee will report by 26 November 2024.

The scheme was established by Whitlam government in the 1970s to assist with the cost incurred by shippers of goods moved by sea across Bass Strait.

It cost the Australian government $181m in 2023-24. The major beneficiaries are big exporters such as Simplot, Norske Skog, Nyrstar, Mondelez, McCain Foods and Tassal.