The Tasmanian Government has reiterated calls for an immediate increase in payments under the Tasmanian Freight Equalisation Scheme (TFES), citing rising shipping costs that impact local producers and manufacturers.
The request aligns with concerns raised by key industry groups, including the Tasmanian Chamber of Commerce and Industry (TCCI) and Fruit Growers Tasmania, ahead of a comprehensive review of the scheme, as revealed in a news release.
Minister for Transport and Minister for Business, Industry and Resources, Eric Abetz, emphasised that Tasmania’s reliance on sea freight places the state at a competitive disadvantage compared to mainland businesses.
“As an island state, Tasmania relies on sea freight to move 99 per cent of our goods, with the cost of shipping directly impacting on the cost of doing business and the cost of living,” Abetz said in a statement.
He pointed out that shipping costs have escalated significantly in recent years while payments under the TFES have not kept pace.
Abetz stated that he had raised these concerns at the Senate Select Committee inquiry, stressing that any changes to the scheme should ensure Tasmanian businesses are not left worse off.
Minister for Primary Industries and Water, Jane Howlett, echoed the concerns, noting that TFES assistance rates for farmers and agribusinesses had remained unchanged since 1998.
She emphasised that this has exacerbated the financial strain on industries, particularly during times of feed and fodder shortages caused by drought.
“I am calling on the Federal Labor Government to immediately increase payment rates, preceding a full review of the scheme as recommended by the Senate Select Committee on TFES,” Howlett said.
She added that supporting local communities is central to the state’s long-term economic plan, highlighting the need for federal action to ensure businesses remain viable.
The Federal Government has not yet announced any immediate changes to the scheme, with discussions on a full review still ongoing.
