Claire Chandler (Tasmania, Liberal Party, Shadow Assistant Minister for Foreign Affairs) Share this | Hansard source

I also rise to provide a brief contribution in response to the tabling of additional information for the Senate committee report on the Tasmanian Freight Equalisation Scheme. This was an incredibly important inquiry, and the report in relation to it demonstrated very clearly that the Tasmanian Freight Equalisation Scheme, the TFES, is not fit for purpose, and the degradation of the scheme over the last three years, in particular, has been putting Tasmanian businesses at a severe disadvantage. That is why the coalition has announced that we will commit an immediate $65 million to support Tasmanian industry and address the increased costs of transporting products to and from Tasmania and the mainland.

While the Albanese government has sat on its hands and allowed Tasmanian businesses, consumers and travellers to pay the price for rising costs, the Dutton led coalition is acting. The announcement by Peter Dutton has been warmly welcomed by Tasmanian businesses and industries over the last few days. The Tasmanian Chamber of Commerce and Industry said the coalition's announcement was 'a fantastic outcome for Tasmanian businesses'. CEO Michael Bailey said:

The TCCI along with the Tasmanian Fruit Growers Association and a range of other businesses have been calling for action on the TFES and it's great that the Coalition has been listening.

Mr Bailey went on:

Tasmanian exports to the mainland and overseas are valued at more than $26 billion each year. The businesses that produce those exports employ thousands of Tasmanians and support hundreds of communities right around the State. This commitment will back in those businesses, secure jobs and support those communities.

Over the last few years, I've engaged with Tasmanian fruit growers, farmers and many incredible Tasmanian businesses who use our fresh produce to make high-value products that are then sold all over the world. They've all told me how the degradation of the TFES is putting their businesses at risk. You cannot have Tasmania producing billions of dollars of world-class fresh produce and then make it punitively expensive to get that produce to the millions of people around the world who want to buy it. This select committee heard time and time again that that is exactly what has been happening in recent years. As my colleague Senator Colbeck and I said in our additional comments to the report:

It is not acceptable for Tasmanian businesses to be disadvantaged because the support provided by the TFES is falling behind the necessary levels of support.

We went on:

Liberal Senators on the committee support the work done by the inquiry and are convinced that the outcome must be urgent modernisation of the TFES to meet the current and future requirements of Tasmanian business and industry.

This report was finalised and released late last year—2024. We are now a third of the way through 2025 and the Albanese government is yet to make any changes to respond to what is clearly an urgent need to support Tasmanian growers and producers.

The agreed committee report signed up to by Labor senators on the committee calls for a review of the TFES. The coalition supports the review taking place, but we have been clear that we feel that doesn't go far enough. That is why we have announced an immediate increase of $65 million in funding to reduce the costs for Tasmanian businesses and travellers. That money will flow immediately into the scheme without needing to wait for another review to be completed. But where is the government on this? They have had months to announce immediate responses and put in additional investment to support Tasmanian businesses, and yet they have done nothing. As the opposition leader said in Spreyton last weekend:

Mr Albanese has stood by and done nothing while Tasmanian businesses have been punished by Labor's high inflation and rising shipping costs.

He also said:

Tasmanian producers and businesses are responsible for some of the finest foods and products. The ability to get these products to markets around Australia and the world is critical to sustaining and growing jobs in Tasmania, and underpinning investment in key industries.

Peter Dutton understands the importance of this scheme to Tasmanian businesses and to Tasmanian manufacturers, as do the member for Bass, Bridget Archer, and our federal candidates: for Braddon, Mal Hingston; for Lyons, Susie Bower; for Franklin, Josh Garvin; and for Clark, Marilena Di Florio. Of course, over many years the Tasmanian Liberal Senate team have been strong supporters of the Tasmanian Freight Equalisation Scheme and have helped secure improvements to the scheme on many occasions, just as we did this weekend just gone.

Credit goes to the chair of the committee, Senator Tyrrell, for initiating this inquiry and for her comments on the call for action and not just another review. That is precisely what the Dutton coalition's $65 million commitment to Tasmanian producers and farmers is all about.