Andrew Wilkie: A statement regarding the PC report into Tassie shipping

I welcome the release of the Productivity Commission report into Tasmanian shipping and freight, but am concerned that it is very much a financial analysis at the expense of broader community and even constitutional considerations.

I also welcome the Federal Government’s commitment to retain the Tasmanian Freight Equalisation Scheme, and the Bass Strait Passenger Vehicle Equalisation Scheme, without which the Productivity Commission would have undoubtedly recommended their abolition.

The recommendation that there be greater transparency of TT-Line and TasPorts is warranted.

And the recommendation to implement a flat rate for all freight may also have merit, including freight going to Melbourne for eventual export. But this recommendation is completely and utterly undermined by the suggestion that any changes be cost neutral. In other words current recipients would receive less subsidy, which would be an alarming development and one that would almost certainly make some Tasmanian businesses unviable. The bottom line is that the overall budget must be increased so that all freight is effectively subsidised.

Another area for great caution is the potential privatisation of TasPorts. While on the face of it the selling of ports and their rationalisation could bring benefits for the community and businesses, no sale should be contemplated unless and until there is effective public consultation and broad public support for any sell-off is clearly demonstrated.

The report also seems to open up the possibility of TT-Line being privatised. Again this must not be contemplated by the State Government unless and until there is effective public consultation, and broad public support for any sell-off is clearly demonstrated.
Independent Member for Denison Andrew Wilkie