The Tasmanian Government notes today’s announcement by the Victorian Opposition that it will push for an inquiry in Victoria’s Legislative Council into the privatisation of the Port of Melbourne.
Notwithstanding this development, however, the Hodgman Liberal Government is proceeding on the basis that the Victorian Labor Government will achieve its goal of privatising the port.
We will continue to stand up for Tasmanian exporters and shippers concerned about the privatisation and will likely make a submission to any inquiry.
Late last week, Victorian Treasurer Tim Pallas, who is responsible for the port privatisation process, flew to Tasmania to meet with Treasurer Peter Gutwein and myself to discuss our ongoing concerns.
We were pleased by this gesture and by the agreement we were able to reach on some key matters relating to Tasmania’s two private sector shipping companies and their long-term lease arrangements.
However, there are still some other important issues to be resolved to ensure that Tasmanian shippers are not unfairly disadvantaged by the privatisation.
The Victorian Government’s current stand-off with DP World is a particular concern because, unless favourably resolved, it will likely see all other stevedoring operators at the Port of Melbourne severely impacted.
This would increase the handling costs of the around 500,000 Tasmanian containers moved through the port, which would be a direct hit on our island State’s economy.
A protracted legal dispute between DP World and the Victorian Government is not in anyone’s interest and to have that matter unresolved prior to the port going to market could have disastrous consequences.
We have made clear to Mr Pallas that a favourable resolution should be his ambition as his Bill will face an uncertain passage through his Upper House, as highlighted today, without the support of the export and shipping industries.
Rene Hidding, Minister for Infrastructure
