TCCI and Fruit Growers join forces in Freight Equalisation Scheme push

The Tasmanian Chamber of Commerce and Industry and Fruit Growers Tasmania have released a detailed proposal to upgrade the Tasmanian Freight Equalisation Scheme.

The proposal calls for an immediate adjustment of the Tasmanian Freight Equalisation Scheme (TFES) payment schedule, to restore some cost parity for shippers across Bass Strait while a full review of the Scheme is undertaken, as recommended by the Senate Select Committee into the TFES. 

Speaking on behalf of the two groups, Wayne Davey (Chairman of the TCCI) and Peter Cornish (CEO, Fruit Growers Tasmania) said all the evidence presented to the Senate Committee, including the Commonwealth Government’s own figures, showed that the freight cost disadvantage for shippers has increased significantly since 1998, and in particular, over the last four years. 

This is having a detrimental impact on Tasmanian businesses trading interstate and overseas, the pair said.

Specifically, the proposal requests: 

• A 22% increase in assistance for the calculated freight cost disadvantage for all northbound movements, increasing the current cap from $755 to $924 per twenty foot (equivalent) container.
• An increase the intermodal component from $100 to $200 per container.
• An increase the trans-shipped (export) freight assistance from $700 to $800 per container, to reflect the increase in intermodal costs. 

Mr Davey and Mr Cornish said that the budget cost of the requested changes is $39 million.