MORE than $200 million over four years to significantly expand the Tasmanian Freight Equalisation Scheme will put a smile on the faces of Tasmanian producers and agri-exporters across Lyons, says Federal Lyons MP Eric Hutchinson.

Mr Hutchinson applauded Prime Minister Tony Abbott’s announcement today of more than $50 million each year for four years to boost the Freight Equalisation Scheme. This will mean$203 million flowing into the scheme in the next four years.

“It is the news that producers and international exporters in my electorate of Lyons have been waiting for since Tasmania lost its international freight shipping service more than three years ago,’’ Mr Hutchinson said.

“This further federal government investment in Tasmanian infrastructure will put our exporters on a level playing field with the rest of Australia,’’ Mr Hutchinson said.

“It will make the cost of doing business for exporters in Tasmania lower so that they can compete in fair market conditions.’’

The money will mean that goods going to markets not currently covered by the scheme will be able to claim $700 per shipping container and shippers from the Bass Strait islands will be eligible for an extra 15 per cent loading.

Mr Hutchinson said that the opening up of the scheme will give Tasmanian producers surety about the costs of doing business both interstate and overseas and probably prevent some from moving interstate.

This significant expansion represents an increase of more than 40 per cent in the Federal Government’s annual investment in the Tasmanian Freight Equalisation Scheme.

“Today’s announcement builds on the significant funding that the Government is already providing under the Economic Growth Plan for Tasmania to build infrastructure,’’ Mr Hutchinson said.

“We want Tasmania to stand on its own two feet economically and this will help enormously.’’

This government is delivering for Tasmania, Mr Hutchinson said.

It is investing $1 billion in the state’s infrastructure including $400 million for the Midland Highway, $38 million for the Hobart Airport runway extension and an extra $60 million for five Tranche Two irrigation schemes.
Federal Lyons MP Eric Hutchinson