Industry call on Labor to match Coalition TFES promise

Tasmania's business and industry has welcomed the Coalition's Tasmanian Freight Equalisation Scheme promise, and have called on Labor to match it.

Tasmanian Chamber of Commerce and Industry CEO, Michael Bailey, said this was a fantastic outcome for Tasmanian businesses.

“The TCCI along with the Tasmanian Fruit Growers Association and a range of other businesses have been calling for action on the TFES and it’s great that the Coalition has been listening,” Mr Bailey said.

“Tasmanian exports to the mainland and overseas are valued at more than $26 billion each year.  The businesses that produce those exports employ thousands of Tasmanians and support hundreds of communities right around the State.  This commitment will back in those businesses, secure jobs and support those communities.

“It’s also testament to the hard work of Tasmania’s Liberal team.

“We are calling on the Labor Party to back in this policy too so the Tasmanian community know that whatever the result on election day, the next Government will be there to support them and deliver for them.  We are calling for a bipartisan approach, because this issue is too important to play politics with.”

Nick Steel, CEO of the Tasmanian Forest Products Association, also welcomed the pledge.

Mr Steel said it was clear the Coalition was listening to the concerns of businesses across the country, and he called on the Federal Labor to do the same.

“This announcement by the Federal Coalition offers certainty to Tasmanian businesses looking to mainland markets during these tough economic times,” Mr Steel said.

“To ensure Tasmanian businesses can continue to support our local economy, and employ thousands of Tasmanians, the Prime Minister should immediately match this announcement and give our industry the certainty it needs to continue to build a stronger Tasmania.”

EARLIER: Opposition Leader Peter Dutton has promised to "turbo-charge" the Tasmanian Freight Equalisation Scheme, if elected.

During a visit to Spreyton Cider on Friday, Mr Dutton announced that a Coalition Government will commit $65 million to support Tasmanian industry and address increased costs of travelling to and from Tasmania to the mainland.  

Mr Dutton said that within the first 100 days of a Coalition Government, they would provide $3 million in funding for a review of the Tasmanian Freight Equalisation Scheme, as recommended by the recent Senate Select Committee, and expand the terms of reference to include the Bass Strait Passenger Vehicle Equalisation Scheme.  

He said that while the review is being undertaken, the Coalition would also deliver interim assistance of $62 million to enhance the Tasmanian Freight Equalisation Scheme. This responds to industry’s request regarding the calculated freight cost disadvantage and increased intermodal costs. This will be available for north and south bound freight, as well as between Tasmania and Flinders and King islands. 

 “Tasmanian producers and businesses are responsible for some of the finest foods and products. The ability to get these products to markets around Australia and the world is critical to sustaining and growing jobs in Tasmania, and underpinning investment in key industries,” Mr 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.”   

Shadow Minister for Infrastructure, Transport and Regional Development, Senator the Hon Bridget McKenzie said the Coalition will ensure the review will cut red tape and find ways to modernise the scheme to reflect today’s commercial environment. 

“This scheme was set up to ensure Tasmanian businesses could compete equally with mainlanders,” Senator McKenzie said. 

“The objective of the scheme is to ensure that freight crossing the Bass Strait would effectively be the same as freight traversing any other highway in the country.   

“Over recent years it hasn’t been working for Tasmanian businesses and they are rightly frustrated.   

“That’s why a Coalition Government will urgently address the issue through an independent review and fix this inequity once and for all."