The Tasmanian Forest Products Association (TFPA) has welcomed news the Australian Senate will be conducting an inquiry into the Tasmanian Freight Equalisation Scheme (TFES) over the coming months.

TFPA Chief Executive, Nick Steel, congratulated Tasmanian Senator Tammy Tyrrell for moving for an inquiry into the scheme, saying the existing TFES model 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.

 “The TFPA has long argued that the current indexation model in the scheme is out of date – no longer keeping up with the exponentially increasing costs to move freight to the mainland that we have seen in recent decades.

“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.

“Being an island, Tasmania is at a distinct disadvantage compared to other states when shipping goods to their markets. 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.”

Mr Steel also welcomed news the Senate committee will hold hearings across Tasmania, as well as news the committee’s report will be handed down by the end of the year.