Senate debates

Wednesday, 9 October 2024

Statements by Senators

Tasmanian Freight Equalisation Scheme

1:51 pm

Photo of Tammy TyrrellTammy Tyrrell (Tasmania, Jacqui Lambie Network) Share this | | Hansard source

The Tasmanian Freight Equalisation Scheme, or TFES, reimburses businesses for shipping their goods across the Bass Strait. Don't get me wrong: many in my state think being separated from the mainland by a body of water is a good thing! But it also causes problems when it comes to us competing on a wider stage. The TEFS was established almost 50 years ago because Tassie businesses don't have the option to use road or rail transport across the 448 kilometres of water between Devonport and Geelong. I've worked with some farmers who pick and process their produce so they can get it to market still fresh, but, as hard as they work to get that fresh produce to you, it can take weeks or even months for those businesses to be reimbursed for their freight costs.

Services Australia delivers the TEFS on behalf of the Department of Infrastructure, Transport, Regional Development, Communications and the Arts, a clunky process that probably makes it harder to work through than necessary. We know this scheme isn't broken, but it's out of date and not fit for purpose. Many of us here agree the TEFS is important and necessary, but there are ways it can be tweaked to support those businesses it was established to help.

I've been worked with the committee and our secretariat to look at the history of the scheme, speak with stakeholders and arrange hearing dates. I'm pleased to say the first hearing is on Monday on King Island, and the committee is looking forward to seeing how the scheme impacts people there. More hearings will follow next month in Hobart, Launceston and Canberra. We want to know what works with the TEFS, what doesn't and how businesses see it can be improved. Then, we want to make those changes so Tasmanian businesses are competing on a level playing field. And I saw the dab; it was good!