The Abbott Budgetary constraints are impacting on funding restrictions to the scope and application of the Bass Strait Passenger Vehicle Equalisation Scheme and coverage of the Tasmanian Freight Equalisation Scheme “TFES”.
Budgetary constraints have been the major reason given for denying expansion or changes to a vital interstate transport link across the Strait.
The overall budgetary policy position limiting this expenditure and its flow on impact on revenue raising and level of expenditure on federal welfare is and will cause damage to many parts of the economy of South Eastern Australia reducing the return on many public and private investments.
The Productivity Commission “PC” recently completed its report into Tasmanian Shipping and Freight.
In doing so, it seems to have assumed that Canberra intended to limit Federal Bass Strait equalisation schemes to improvements covered by existing or just slightly elevated levels of support.
Requests made of the PC and the Federal Government for equalisation schemes to apply to a full National Sea Highway (NSH), covering the movement of all people, vehicles and freight by sea at highway equivalent cost, and requiring a greater federal budgetary allocation were largely ignored at levels below the Prime Ministerial office.
The additional amount possibly required is about $300 million, being a once off capital cost for the purchase of one or two vessels that could fill gaps in TFES and be run at highway costs and be used for say 10 years. This amount could be apportioned at say $30 million annually.
Alternatively, the budget should be increased by about $200 million a year using methods already designed to apply federal equalisation support.
As Bass Strait is half in Victoria, these allocations as far as Tasmania is concerned, could be halved resulting in very little change to Tasmania’s highway infrastructure …
Download the rest of the submission to Senate select committee inquiry into he Abbott government budget cuts …
