Farming bodies welcome election commitments to enhance TFES

The Tasmanian Freight Equalisation Scheme has emerged as a focal point for political parties in the leadup to the Federal Election and TasFarmers and AUSVEG - the peak bodies for Tasmanian farmers and Australian vegetable, potato and onion growers - have welcomed the latest commitments to boost funding for the Scheme.

With the Labor Party on Wednesday pledging an additional $95 million for the TFES if it forms government after the election, both major parties have now committed to additional investment and reviews for the crucial scheme, following the Coalition’s $65 million announcement last month.

According to TasFarmers the current scheme has failed to keep up with surges in the cost of freight and shipping and is in urgent need of updating.

These concerns were also reflected in last year’s Senate Select Committee Inquiry into the TFES.

TasFarmers President Ian Sauer said that while Labor’s announcement will provide much needed relief, the key task for the incoming government will be to fully review the existing scheme with the aim to make the TFES efficient and streamlined.

“The current scheme is extremely hard to use to the point where many smaller users simply giveup,” Mr Sauer said.

AUSVEG CEO Michael Coote said commitments to enhance the TFES were a welcome boost for Tasmanian vegetable growers.

“Tasmania is home to some of Australia’s key vegetable and horticultural production regions and growers, with an international reputation for excellent produce,” said Mr Coote.

“Commitments to boosting and reviewing the TFES are very welcome and have the potential to enhance the competitiveness of Tasmanian vegetable growers in domestic and international markets, while fostering further investment in Tasmania’s critical horticulture sector.”

Liberal candidate for Lyons Susie Bower said that the Coalition Government will turbo-charge the Tasmanian Freight Equalisation Scheme and back Tasmanian farmers and exporters.

If elected the Coalition says it will deliver:

• A 22 per cent increase in assistance for the calculated freight cost disadvantage for all northbound and southbound movements, increasing the current cap from $755 to $924 per twenty-foot (equivalent) container;
• An increase to the intermodal component from $100 to $200 per container;
• An increase to the trans-shipped (export) freight assistance from $700 to $800 per container, to reflect the increase in intermodal cost; and Increase the base amount of the King Island and Flinders Island fixed rate by 22 per cent, plus $100 to reflect the increase in the intermodal component of the Scheme.

“This is on top of our commitment to contribute $150 million to help catalyse the Greater South East Irrigation Scheme, which will transform agriculture in the south of the state.”

A commitment to irrigation was also welcomed by Tasfarmers.

“These investments allow producers to transform low-value dryland farming into high-value irrigated enterprises,” TasFarmers CEO Nathan Calman said this week

“This shift not only increases employment opportunities, but also stimulates significant on-farm capital investment, fostering new entrepreneurial ventures for service providers and farm owners.

“Both sides of politics need to recognise Tasmania’s crucial role in national food security and its potential as a key food-producing region for the country. To move the industry forward, governments must not walk back on their current contribution levels.

As the election approaches on May 3, various policies affecting the agricultural sector have been proposed by political parties and industry groups.