Long overdue freight probe applauded

A SENATE inquiry into the Tasmanian Freight Equalisation Scheme (TFES) has producers hopeful for change after 15 years of freight increases. 

The Senate voted to support Independent Tasmanian Senator Tammy Tyrrell’s motion to establish a Senate Select Committee into the TFES on Tuesday. 

“The TFES isn’t helping businesses the way it’s supposed to,” she said. 

“On average it takes four months from when a business ships their produce to when they get money back from the TFES. How many small businesses do you know that can wait four months for an invoice to be paid?” 

Livestock transporter Geoff Page from Page Transport said while unsure this would lead to any meaningful change, he was happy it had been brought forward by the senator. 

“Freight is getting dearer and dearer year on year, but the subsidy hasn’t moved in 25,” he said. “It’s about three to four times more expensive to do the same task on the mainland as on the Bass Strait – that’s a pretty dear bit of water,” he said. 

Mr Page highlighted that in the headline of the scheme is “Freight Equalisation” to equalise the costs for the farmers in Tasmania and not to the disadvantage of their mainland counterparts. 

“At the moment this scheme is not serving, it needs more funding, and it needs to be funded properly; It seems to be that the gap is getting wider and wider all the time.” 

“Instead of everyone sitting on their hands and leaving it at the same rate as it was in 1999, this is 2024, at the very least the numbers in there need to be doubled,” Mr Page said. 

Mr Page said the current scheme “holds back” people from investing in Tasmania when they could do something similar in Victoria. 

From a net point of view, Mr Page said that every year it becomes exponentially dearer to ship livestock across the bass strait. 

“The freight subsidy has stayed the same, but the gross prices continue to increase and this year shipping prices have increased five and a half per cent.” 

“Last year the total number of sheep and lambs shipped across the water was approaching 18,000 so a lot of animals leave the state, and it’s a significant hit when we’re talking about increases in freight.” 

“I’m happy it’s on the agenda, if we can actually get an outcome and help our industry then I think it’s a good thing,” Mr Page said.

TasFarmers president Ian Sauer said they are delighted the scheme will be reviewed but said it’s not just about the rates and prices changing— it’s about the whole scheme. 

“The rates are really important but it’s also making the whole scheme more effective, more efficient and cutting all the red tape out of it.” 

TasFarmers’ feedback was that for those not regular users of freight equalisation, the scheme is very daunting and hard to use.

“Senator Tyrrell said she will be liaising with farmers and the processors, and we think that is very important,” Mr Sauer said. 

He said it is important to remember the freight equalisation scheme is there to even out the cost-differences between road transport and sea. 

“Sea transport between Flinders Island, King Island and Tasmania are vitally important for the economic wellbeing of Tasmania and if we don’t get the sea freight right then it’s going to create economic hardships for the whole of Tasmania,” Mr Sauer said. 

He added that Tasmanians need parity because 90 per cent of Tasmania’s exports go across the Bass Strait including agricultural products and a range of other goods.