A scheme deigned to level the playing field for Tasmanian businesses on the mainland is out of date, difficult to use and not fit for purpose, according to the Tasmanian Forest Products Association (TFPA). 

The Tasmanian Freight Equalisation Scheme (TFES), originally designed by the Whitlam Government in the 1970s, aimed to ease the cost burden of shipping goods across Bass Strait for Tasmanian businesses. 

But according to TFPA Chief Executive, Nick Steel, a lack of indexation and modernisation since its inception has left the scheme relying on out-of-date methodologies and substandard cost recovery models. 

“The TFES is critical to the ongoing viability of Tasmanian industries and impacts every business that participates in national and international markets,” Mr Steel said. 

“But the scheme as it exists today no longer provides a level of cost parity with road freight.  This disadvantages Tasmanian shippers who have no other way to get their product to market other than by ship across Bass Strait.” 

Mr Steel said the TFPA is joining with other Tasmanian industry associations calling for both major parties in the upcoming federal election to back an increase in cost recovery for Tasmanian businesses exporting to the mainland. 

“We are seeking the immediate changes to northbound and export freight payment schedule of the TFES,” Mr Steel said. 

“We are seeking: 

• A 22 per cent increase in assistance for the calculated freight cost disadvantage for all northbound movements, increasing the current cap from $755 to $924 per container; 

• An increase to the intermodal component of the scheme from $100 per container; and  

• An increase in the fixed export freight assistance rate from $700 to $800 per container, to reflect the increase in intermodal costs. 

“These adjustments will only cost an additional $39 million per annum, but will make a huge difference for Tasmanian businesses, jobs and the economy,” Mr Steel said.   

“I’m calling on both the Labor Government and Coalition to back our calls and let Tasmanian businesses compete fairly in mainland and international marketplaces.”