Tasmanian farmers welcome Freight Equalisation Scheme commitments

Joint media release | TasFarmers & AUSVEG

TasFarmers and AUSVEG – the peak bodies for Tasmanian farmers and Australian vegetable, potato and onion growers – have welcomed the latest commitment to boost funding for and review the Tasmanian Freight Equalisation Scheme (TFES).

With the Labor Party today pledging an additional $95 million for the TFES if it forms government after the election, both major parties have now committed to additional investment and reviews for the crucial scheme, following the Coalition’s $65 million announcement last month.

Tasmania’s agriculture sector is heavily reliant on the TFES which supports companies shipping eligible goods across the Bass Strait, given the additional costs they face compared to mainland counterparts.

TasFarmers has called for a fairer, more fit-for-purpose TFES among its top federal election priorities, amid concerns the current scheme has failed to keep up with surges in the cost of freight and shipping, and is in urgent need of updating. These concerns were also reflected in last year’s Senate Select Committee Inquiry into the TFES.

TasFarmers President Ian Sauer welcomed the latest announcement by the Australian Labor Party to increase support for the Tasmanian Freight Equalisation Scheme (TFES).

“This is an excellent announcement and one which will be welcomed by all Tasmanian farmers,” said Mr Sauer. 

“As the Senate Select Committee found, the scheme hasn’t kept up with the increased costs of trading across Bass Strait and farmers have been at a significant disadvantage to their mainland counterparts for many years.

“While this announcement will provide much needed relief, the key task for the incoming government will be to fully review the existing scheme with the aim to make the TFES efficient and streamlined.

“The current scheme is extremely hard to use to the point where many smaller users simply give up. 

“These are exactly the businesses the scheme should be supporting to increase Tasmania’s agricultural productivity, and we look forward to working with the incoming government to make the Tasmanian Freight Equalisation Scheme a long-term success for the benefit of all Tasmanian farmers,” said Mr Sauer.

AUSVEG CEO Michael Coote said commitments to enhance the TFES were a welcome boost for Tasmanian vegetable growers.

“Tasmania is home to some of Australia’s key vegetable and horticultural production regions and growers, with an international reputation for excellent produce,” said Mr Coote.

“Recent surges in the cost of production – particularly freight and shipping – mean Tasmanian growers continue to face major additional challenges, and the TFES has not kept up.

“Commitments to boosting and reviewing the TFES are very welcome, and have the potential to enhance the competitiveness of Tasmanian vegetable growers in domestic and international markets, while fostering further investment in Tasmania’s critical horticulture sector.”