A scheme designed to bring down the cost of freight across the Bass Strait in line with mainland highways is out-of-date, and no longer delivering good outcomes, according to a Federal Parliamentary Inquiry.
Minister for Business, Industry and Resources, Eric Abetz has welcomed the Senate Select Committee's report on the Tasmanian Freight Equalisation Scheme.
"I have long been arguing that this scheme is out-of-date and increases the cost of living in Tasmania.
"The growing gulf between available rates of assistance and actual costs of delivering goods to Tasmania mean that the Freight Equalisation Scheme functions as a de-facto tax on Tasmanians.
"The buck is now with the Federal Government to demonstrate its sincerity to Tasmania, and both implement reforms, but at the same time, guarantee that no Tasmanian will be worse off," Minister Abetz said.
Among the recommendations of the inquiry were that the Federal Government undertake a review of the scheme and consider available rates of assistance.
The inquiry also recommended that the Federal Government develop better and more easily understood operating manuals and examine the presence of competition among air and sea Tasmanian routes.
