The Tasmanian Greens today vowed to continue the fight for equity for Bass Strait shipping, after the Federal Government’s blatant decision to discriminate against Tasmanian businesses and jobs.
Greens Leader Nick McKim said he was aware that Australian Greens Leader Bob Brown was still working on this issue directly with the Prime Minister and Treasurer, and that Senator Brown remained optimistic of getting an outcome.
“This is a shocking slap in the face by the Federal Government and an attack on the jobs and prosperity of Tasmanians,” Mr McKim said.
“The fight for equity is far from over, and the Tasmanian Greens stand ready to work alongside Labor and Liberal to deliver equity for Tasmania.”
“Tasmania is not asking for special favours, simply the same assistance that all mainland states and territories already receive in the form of federal funding for rail and highways.”
“Bass Strait is simply the Tasmanian leg of the national highway, and yet we continue to be treated unequally.”
Mr McKim said that in addition to expanding the TFES, there were a number of options that still haven’t been explored.
“We need to be looking at what we can be doing to bring another direct overseas shipping service to Tasmania.”
“Issues such as how to lower running costs and improve the efficiency of existing shipping services also need to be explored,” Mr McKim said.
And,
The Tasmanian Greens Leader Nick McKim today said the $20 million for freight assistance announced by Federal Infrastructure Minister Anthony Albanese was welcome but was no substitute for a long-term commitment to freight equalisation for Tasmania.
“While it’s welcome, this is a band-aid solution and is no substitute for long-term reform of the Tasmanian Freight Equalisation Scheme.”
“Tasmania is not asking for special favours, simply the same assistance that all mainland states and territories already receive in the form of federal funding for rail and highways.”
“The fight for freight equity is not over, and the Tasmanian Greens stand ready to work alongside Labor and Liberal in the best interests of Tasmania.”
Earlier on Tasmanian Times: Brown gives Treasurer Bass Strait plea, with links to earlier Peter Brohier analysis – Fairly linking Bass Strait is critical for Tasmania
• Senator Bob Brown:
Tasmanian Freight Equalisation Scheme
Today’s announcement from Anthony Albanese for a $20 million package to assist Tasmanian exporters is no substitute for amending the Tasmanian Freight Equalisation Scheme so that Tasmanian exporters are treated equally with their mainland counterparts, Australian Greens Leader Senator Bob Brown said today.
“The $20 million barely covers the losses by Tasmanian exporters in the last year because they are excluded from freight equalisation.
“Mr Albanese should immediately commit to freight equalisation for Tasmanian exporters from July 1,” Senator Brown said.
“It must be in the May budget.”
Earlier:
Someone’s misinformed on Tas freight
Australian Greens Leader Bob Brown is incredulous at today’s news from Tasmanian minister David O’Byrne that federal Treasurer Wayne Swan has advised him “it will not be adjusting the Tasmanian Freight Equalisation Scheme to include north-bound international exports from Tasmania”.
“Less than 24 hours ago I had very earnest discussions with Wayne Swan on this very issue and he was very considerate of it. I explained that, for just $21 million per annum, this fair proposal will help keep manufacturing jobs in Tasmania which has a 7% unemployment rate,” Senator Brown said.
“If the Treasurer has in fact stymied the proposal, it is a major breach of faith as we head into the final eight weeks of pre-budget talks,” Senator Brown said.
• Wednesday, Tim Morris:
The Tasmanian Greens today said the cost of shipping across Bass Strait was a tightening chokehold around the throat of Tasmanian businesses, and must be dealt with.
Greens Infrastructure spokesperson Tim Morris MP The first and most important step was to create a truly level playing field via the Tasmanian Freight Equalisation Scheme.
“The Greens went to the last election calling for the system to be expanded, and today the need is more pressing than ever,” Mr Morris said.
“Bass Strait is the Tasmanian leg of the national highway, and yet we continue to pay a substantial penalty for transporting containers across Bass Strait since the loss of the direct overseas service.”
“This is not about subsidising Tasmania, it’s about providing the same financial assistance that all mainland states and territories currently receive in the form of federal funding for rail and highways.””
“It is telling that it is apparently more than twice as expensive to shift a container across Bass Strait than to Bangkok, yet we don’t seem to fully understand why this is so.”
“Many options, such as how can shipping costs be reduced, still haven’t been fully explored.”
“Also, there is strong case to be made for considering passengers and some air freight for inclusion in the TFES.”
“These issues need to be addressed, and the Greens stand ready to work with Labor and the Liberal parties, and the Upper House, to deliver equity for Tasmania,” Mr Morris said.
• Jan Davis, TFGA: Farmers stake their claim for export assistance
Equity has to apply in the distribution of a one-off $20 million federal assistance package to Tasmanian exporters, the state’s farmers insisted today.
The Tasmanian Farmers and Graziers Association (TFGA) represents 3500 farm businesses, many of which send premium food and fibre throughout the world. Today they staked their claim for a fair share of the assistance
.
The TFGA had been pressing the federal government to review the Tasmanian Freight Equalisation Scheme (TFES) so that it would take into account the fact that:
• Tasmania no longer has direct shipping links overseas and therefore must ship exports through Melbourne at a disproportionately high cost;
• the recent hike in Port of Melbourne charges;
• there is no carbon tax exemption for Bass Strait shipping fuel whereas there is for road fuel.
While failing to secure the TFES review, TFGA chief executive Jan Davis welcomed the $20 million assistance package, which the Australian Government has stipulated the Tasmanian Government will administer.
“It is imperative the criteria for assistance be fair and equitable to all exporters, especially farmers,” Ms Davis said.
“Agriculture is the prime driver of the Tasmanian economy and its export earnings stay in Tasmania.”
She said transport costs for the first stage of any export, the 320 km from Tasmania to Melbourne, made up a disproportionate share of overall costs.
“For example, one vegetable exporter has calculated that this first stage for his products constitutes 35 per cent of the cost of getting his product to Europe, a distance of at least 16,500 km. That’s simply unsustainable,” Ms Davis said.
She said the TFGA wanted to have input when the $20 million assistance guidelines were determined to ensure they did not disadvantage farm exporters.
Ms Davis said a TFES review was still the preferred outcome. Without a level playing field, Tasmanian farmers remained at a distinct disadvantage with competitors on the mainland.
The TFGA would continue to argue the case for the TFES review.
• SENATOR THE HON RICHARD COLBECK
Senator for Tasmania
Shadow Parliamentary Secretary for Fisheries and Forestry
Shadow Parliamentary Secretary for Innovation, Industry and Science
M E D I A R E L E A S E
23 March, 2012
Federal $20 million band-aid won’t help Tasmanian businesses with Carbon Tax burden
Federal assistance of $20 million for Tasmanian exporters is welcome but it is nothing more than a band-aid as State and Federal Governments fail to work together on long-term strategies to help Tasmanian businesses cope with spiralling shipping costs.
“What Tasmanians really need to know is what Minister Albanese will do to help them deal with the extra costs he is imposing on their businesses through the Carbon Tax,” Tasmanian Liberal Senator Richard Colbeck said.
“Tasmanian industries are staring down the barrel of a double-digit percentage price hike for sea freight costs thanks to Labor’s Carbon Tax.
“I have copies of recent advice from TT Line and SeaRoad (attached) warning customers of coming price rises, and both letters explicitly highlight the Carbon Tax burden.
“In doling out this $20 million, Minister Albanese gave a severe slap down for the Tasmanian Government for not doing the necessary long-term planning, but this band-aid $20 million also reflects poorly on the lobbying efforts of Tasmania’s Federal Labor MPs.
“This is a joint Federal-State issue and it is not good enough for the Federal MPs, and the Federal Minister, to shirk responsibility for assisting with a long term solution.
“Tasmanian exporters will certainly welcome the $20 million but this assistance will only last for 6-9 months if it is applied in a similar way to the Tasmanian Freight Equalisation Scheme funds.
“Where did this $20 million come from yesterday? And what happens when it runs out?” Senator Colbeck said.
Download:
SeaRoad_Customer_Advice.pdf
TT_Line_Customer_Advice.pdf
