1 May 2015
The Hon. Warren Truss MP PO Box 6022 House of Representatives Parliament House Canberra ACT 2600
Dear Deputy Prime Minister
Thank you for your letter and reply to my concerns about the expansion to the Tasmanian Freight Equalization Scheme dated 1.4.15
I’m grateful that your government listened carefully to the many speeches I’ve made to the Senate about the need to increase funding for the Tasmanian Freight Equalization Scheme and have now subsequently allocated an extra $203M for the scheme.
I acknowledge that the meeting I organized on 10.2.15 between the General Manager of Norske Skog Paper Manufacturer, Mr Rod Bender and Prime Minister Tony Abbott and Foreign Affairs Minister Julie Bishop – was critical in ensuring that the Tasmanian Freight Equalization Scheme was boosted by $203M and expanded to include products bound for export.
However, I’m deeply disappointed that it took so many years of agitation for the scheme to be expanded. Because of years of inaction and procrastination by various governments, including yours, Tasmania’s economy, employment and living standards have been seriously harmed.
How many Tasmanian businesses have been hurt unnecessarily and how many jobs and job opportunities have been lost because the TFES was not boosted and expanded sooner?
Your statement to me that:
“… the expanded TFES is part of the Australian Government’s plan to improve Tasmania’s economic growth, employment and living standards”
… proves to me that your government has known how important the freight equalization scheme is to the economic and social health of my state.
And yet, by delaying the funding boost, your government has been caught out gambling with up to 10,000 Tasmanian jobs and the survival of some of our biggest employers.
I mention this fact because of your government’s extraordinary decision to delay allocation of funds and an expansion of the scheme to cover exporters until the 1st of January 2016.
Once again, you have been caught out gambling with Tasmanian jobs and the survival of some of our biggest employers.
By making Tasmanian exporters wait 6 months until Jan 2016, to be included in the freight equalization scheme – you are taking a huge risk with the job security of hundreds of Tasmanian workers.
My simple questions are:
Given the threat the Tasmanian economy is under, why take that risk?
Why can’t you bring forward by 6 months the start of the initial round of the 1st year’s boost of $50m to the TFES?
All it would mean is that instead of an extra $50M being injected for 12months – the $50M could be invested over 18months.
If your government refuses to listen to reason and bring forward by 6 months the boost and expansion to the TFES, I’m assured by reliable sources that Tasmanian export businesses will be $25M to $50M worse off.
I would like to have written to you in a less direct and confrontational manner. And I repeat the point that I appreciate the commitment of the extra $203M to the TFES.
However, the jobs of hundreds, perhaps thousands of Tasmanian workers are at risk once again, because of your government’s incompetence and inaction.
I want this matter addressed and fixed now without delay.
I look forward to negotiating with your government over the broad range of legislative and budgetary measures. I am a proud Australian and will always work in the National interest.
However, in closing, I refer you to comments written by Journalist Paul Colgan in the Australian Business Insider: http://www.businessinsider.com.au/over-to-you-joe-hockey-2015-4
You’ll note that he writes:
“An influential Liberal told me this week that now Jacqui Lambie has cut her ties with Clive, she seems more interested in building bridges.”
He added: “But if you want to talk to Jacqui, you have to discuss Tasmania.”
The wheels are turning in the background. Over to you, Treasurer.”
Sincerely
Senator Jacqui Lambie
Senator for Tasmania
Hon Warren Truss MP
Deputy Prime Minister
Minister for Regional Development
Leader 0fThe Nationals
Member for Wide Bay
Senator Jacqui Lambie
Senator for Tasmania
Dear Senator Lambie
Thank you for your query about thc $203 million expansion to the Tasmanian Freight
Equalisation Scheme (TFES) which thc Australizm Government announced 0n
13 March 2015.
As you are aware thc expanded TFES is pan ofthe Australian G0vcmmcnt`s plan t0
improve Tasmzmia`s economic growth, employment and living standards. The
$203 million is thc total z1dditi011al funding to the scheme over four years commencing
Hom l January 2016. This new commitment will c0st the Australian Govcmmcnt an
additional $30.0 million for the six months ofthc Hrst year and about $58 million
annually for thc three years aficr. The offscts ibr thc $203 million additional
expenditure will bc identified as pam 0f the 2015-16 Budget process.
The additional expenditure 0f$2O3 million 0vcr four years is on top of thc current
funding 0f $457.2 million 0vcr four years under the TFES.
I trust that this inf0m1ati0n has addressed your query.
Yours sincerely
WARREN TRUSS
Senator Jacqui Lambie Senator for Tasmania
