Forty years of backing Tasmanian producers celebrated

Media Release


27 September 2016

Joint release with:

Stephen Parry

President of the Senate
Senator for Tasmania

Eric Abetz

Senator for Tasmania

The Australian Government has marked 40 years of assisting Tasmanian producers transport goods to the mainland at a ceremony at the Port of Burnie today.

Minister for Infrastructure and Transport Darren Chester said over the decades the Tasmanian Freight Equalisation Scheme (TFES) had played a critical role in alleviating the natural disadvantages faced by producers transporting goods between Tasmania and mainland Australia.

“Unlike those on the mainland, Tasmanian producers do not have the option of transporting goods interstate by road or rail,” Mr Chester said.

“This scheme helps reduce this cost disadvantage by giving Tasmanian industries a greater opportunity to compete with their counterparts on the mainland.

“Alongside other major investments such as the Australian Government's $106 million Tasmanian Jobs and Growth Plan, the scheme is helping to create jobs and build a strong and prosperous Tasmania.”

Senator Stephen Parry said at today's event the expansion of the scheme at the beginning of the year meant eligible non-bulk goods could be shipped to the mainland regardless of their final destination.

“The Australian Government's ongoing support to producers through this scheme highlights our commitment to driving jobs and growth in Tasmania,” Senator Parry said.

“Tasmanian producers rely heavily on shipping to access markets, and the TFES ensures this remains possible.”

Senator Eric Abetz said the Federal Coalition Government is working closely with the Tasmanian Liberal Government to deliver more jobs and drive investment in the state.

“The Tasmanian Liberal Senate Team has secured record levels of investment in our state and today's celebration is just another reminder of the strong record of delivery. Be it our $200 million expansion of the Tasmanian Freight Equalisation Scheme, our Tasmanian Jobs and Growth Plan or the investment in the Midland Highway, irrigation schemes, Hobart Airport and local roads, we are advancing Tasmania's interests,” Senator Abetz said.

“Thanks to the stronger economic environment created by the Federal and State Governments, Tasmanian shipping is continuing to grow, with news just in the past week that Toll Group will invest $170 million to build two new ships to be deployed on the Victoria to Tasmania trade routes.”

The demand-driven Tasmanian Freight Equalisation Scheme provided approximately $123.4 million of assistance in 2015–16, with an additional $202.9 million being allocated over four years from 2015–16 to 2018–19.