Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Hansard source

I move:

That the Senate take note of the document.

Well, for nearly two years the Albanese government has stood by while Tasmania's producers, exporters and families have been punished by high inflation, rising shipping costs and a freight equalisation scheme that hasn't kept pace with modern freight realities. The Labor government, under Anthony Albanese, has ignored repeated calls from Tasmanian industry bodies, including the Tasmanian Logistics Committee and the Tasmanian Farmers and Graziers Association. The Labor government has allowed shipping and logistics cost pressures to compound under its economic mismanagement, and this has led to unfair cost burdens for Tasmanian primary producers and manufacturers under the Tasmanian Freight Equalisation Scheme. It means they are unable to compete fairly against mainlanders when it comes to exporting their high-quality goods.

The Tasmanian Chamber of Commerce and Industry has said that a properly functioning scheme is vital to ensuring that Tasmanian businesses can continue to participate in increasingly competitive national and international markets. Its CEO, Michael Bailey, has said that the scheme is plagued by restrictive timeframes and 'weird anomalies'. Cabinet-makers can claim for wood coming into Tasmania but not for things like hinges and door handles, which really impacts their profitability. Cherry grower and president of Cherries Tasmania Orchards Nic Hansen believes the scheme was good 25 years ago but has not seen it change in that time, and it's no longer fit for purpose. He said:

It costs us 50 per cent extra to send a pallet of fruit from here in Grove—

in Tasmania—

to Melbourne than it does from Melbourne to Hong Kong

So this scheme is a fundamental pillar in an equity arrangement to ensure that Tasmanian producers and manufacturers can compete on an equal footing against their mainland cousins.

The coalition recognises Tasmania's unique geographic position and the critical importance of freight and passenger transport to the state's economic future. Our Tasmanian team has been fighting for changes to that scheme for some time, and I would like to pay tribute to the Liberal candidate for Braddon, Mal Hingston; the Liberal candidate for Lyons, Susie Bower; and the member for Bass, Bridget Archer—three people who have championed reform of this scheme on behalf of their primary producers, their small businesses and manufacturers, and, indeed, residents in Tasmania who want to see changes to the passenger vehicle equalisation scheme as well.

Recently, I had the pleasure of joining Peter Dutton to visit Grant and the team at Spreyton Cider Co., who've been experiencing the same problems faced by many growers, manufacturers and businesses in Tasmania. We were able to make the commitment that, within the first 100 days of a newly elected coalition government, we will be reviewing the Tasmanian Freight Equalisation Scheme, as was recommended by the select committee. We will also expand that review to cover the Bass Strait Passenger Vehicle Equalisation Scheme. Whilst that review is being undertaken, while it is examining the issues raised throughout the Senate select committee's inquiry, we understand that exporters in particular will still be subjected to an unfair regime. That's why we've put interim assistance to the tune of $62 million on the table to support Tasmanian businesses whilst we undertake that urgent review of this scheme, because we know this scheme is not fit for purpose; we have heard the concerns of Tasmanian businesses, manufacturers and primary producers; and we want this scheme to be futureproofed so that, going forward, it will no longer be a political football to be used to the detriment of businesses on the island.

The industry have advised that the calculated freight cost disadvantage and increased intermodal costs are driving them to the wall. If we're serious about supporting them, we need to address the issue that Labor, through the increased cost pressures, increased energy prices and increased input costs across the board, have been impacting Tasmanian businesses. This concerns both northbound and southbound freight. We also want to look at the freight issues between the Flinders and King islands and Tasmania itself. We want to ensure that this scheme is fit for purpose, and this review will be done urgently if we are successful at the next election.

Peter Dutton said a coalition government will ensure the two schemes are fit for purpose, and he acknowledged that Anthony Albanese has stood by and done nothing while Tasmanian businesses have been punished by Labor's high inflation and rising shipping costs. We know the coalition has a strong track record of ensuring Tasmanian businesses and farmers aren't disadvantaged in selling their goods interstate or exporting to the world, and we plan to continue that.

This scheme was set up to ensure that Tasmanian businesses could compete equally with mainlanders. The objective of the scheme is to ensure that, as freight crosses both sides of Bass Strait, Bass Strait is treated like any other highway in our national highway network. Over recent years, we know that hasn't been working for Tasmanian businesses, and they're rightly frustrated, and that's why we are going to urgently put the issue through an independent review and fix this inequity once and for all. It's equally important that the review consider the design and settings of the Bass Strait Passenger Vehicle Equalisation Scheme because many Tasmanians use that service to access the mainland for education opportunities, to connect with family and friends and, importantly—and increasingly, sadly—to access critical medical services.

We want to ensure a fair go for Tasmanian industries as part of our plan to deliver a strong and secure economic future for Tasmania and to get our country back on track. We will also be exploring, as part of the review, the model commercial environment facing Tasmanian businesses and ways to cut red tape and make the scheme simpler and more responsive. We've heard from businesses that the paperwork associated with the scheme is onerous and there are much swifter and easier ways to ensure businesses can access the support under the scheme in a timely manner.

Many Tasmanians depend on the ferry system, the Bass Strait Passenger Vehicle Equalisation Scheme, particularly those who are older and who don't appreciate flying. The design and the operation of the Bass Strait Passenger Vehicle Equalisation Scheme must work for people, not just for those who can afford what is often an unaffordable airline ticket. These schemes were established because Bass Strait shouldn't be a barrier to opportunity. It shouldn't be more expensive to move things across Bass Strait than on any other major highway across the country.

Communities in Tasmania are telling us that the scheme is outdated by its design, is too slow in reimbursement and is misaligned with the real costs of intermodal freight in 2025. It's time to give Tasmanian world-class producers and exporters a fair go. That is what Susie Bower is fighting for, that is what the Liberal candidate for Braddon, Mal Hingston, is fighting for, and that is what the Liberal member for Bass, Bridget Archer, is fighting for. Only votes for the Liberal candidates in Lyons, Bass and Braddon will deliver the reforms that the Tasmanian Freight Equalisation Scheme needs not just to fix the disincentive and the inequity that exists right now but to futureproof the scheme in coming decades so it can no longer be used as a political football by different sides of politics. If the Labor Party were serious about backing Tasmanians—if Anthony Albanese was serious about backing Tasmania's potential as a producer and exporter of world-class product, he would be reforming this scheme and giving Tasmanians a fair go.