TasFarmers welcomes Senate Freight Equalisation review recommendations

Tasmania's peak body for primary producers, TasFarmers welcomes the Federal Government's Senate's Select Committee Report on the Tasmanian Freight Equalisation Scheme and its recommendations.

Independent Senator Tammy Tyrell announced the completion of the committee's review, which highlights the scheme as ineffective and a deterrent to business investment in the state.

TasFarmers CEO Nathan Calman said that TasFarmers applauds the committee for completing the inquiry within just a few months, conducting multiple hearings across the state, and delivering clear and actionable recommendations for the government.

"This review gives us a pathway ahead of the federal election and this should be on the Christmas wish list of every Tasmanian primary producer. The review acknowledges what we have been saying for some time, that the original policy intent of the existing scheme is not currently delivering the intended outcomes.

"The scheme was originally designed to offset the cost of crossing the Bass Strait, ensuring that Tasmanian producers are not disadvantaged and that the expense of transporting goods to mainland markets remains comparable or no different to putting the same goods on a truck and driving down the national highway.

"The committee has truly listened to the industry and carefully considered the body of evidence presented. It was made overwhelmingly clear that while the current scheme is important, it is not effectively bridging the gap.

The review acknowledged that a significant part of the problem lies in the scheme's complexity and the challenges associated with making claims, which have led to it being underutilised.

For the scheme to be effective, it must be straightforward enough for first-time users to easily make a claim," Mr Calman said.

"Currently, the process is so complex that producers often need to hire external support just to submit a single claim. As a result, many are not utilising the scheme in its current form."

TasFamers is advocating as part of its federal election platform that further funding be made available as a result of the recommendations and that they be funded in the next federal budget in a bipartisan way.