The Tasmanian Forest Products Association (TFPA) has welcomed a commitment by the Federal Labor Party to increase funding for the Tasmanian Freight Equalisation Scheme (TFES) by $95 million, as well as promising a review into the modernisation of the program, if it wins the upcoming election.

Speaking following the announcement, TFPA Chief Executive Officer Nick Steel said the modernisation of the scheme was vital to keeping Tasmanian businesses competitive.

“The TFES model, as it stands, is no longer fit for purpose. This scheme was set up almost 50 years ago and it’s clear it’s no longer working for Tasmanian businesses,” Mr Steel said.

“That’s why we welcome Labor’s commitment to increasing funding for the scheme – to ensure correct cost recovery – as well as a full review into the modernisation of the TFES.”

Mr Steel said making sure the scheme is fit for purpose is more important now more than ever.

“Australia is currently in a cost-of-living crisis. It’s being particularly felt here in Tasmania, not only by consumers but also by businesses trying to sell to the other states,” Mr Steel said.

“Being an island, Tasmania is at a distinct disadvantage compared to other states when shipping goods to their markets. That’s why the Whitlam Government introduced the TFES in the 1970s – to go some way to level the playing field between mainland and Tasmanian businesses.

“However, to work properly it’s essential to regularly review the scheme to ensure Its original purpose remains relevant.”

This announcement brings bipartisan commitment to the modernisation of the scheme – ensuring it remains fit for purpose into the future.

“It’s pleasing to see that both sides of politics recognise the importance of the TFES in allowing Tasmanian businesses to compete on the mainland,” Mr Steel said.

“The TFPA looks forward to continuing to work with both sides of politics to ensure other issues for Tasmanian forestry remain on the political radar.”