Forty years on, the Tasmanian Freight Equalisation Scheme continues to underpin our State’s strong economic growth.
Established by the former Fraser Coalition Government in 1976, the TFES was designed to offset some of the freight cost disadvantage for Tasmanian businesses associated with Bass Strait shipping.
The 40th anniversary of the TFES is a milestone to remind us of the importance of this Scheme, which was significantly expanded under a Federal Coalition Government from January this year.
Until this year, the demand-driven TFES provided around $110 million in assistance each year to Tasmanian businesses. The Australian Government’s expansion of the scheme, which took effect earlier this year, was estimated by federal Treasury to benefit Tasmanian businesses by a further $50 million a year.
This expansion, courtesy of the Federal Coalition Government, is a game-changer for Tasmanian businesses trading across Bass Strait as it now applies to eligible freight destined for international ports.
The Tasmanian Freight Equalisation Scheme is fair recognition of the disadvantage our businesses face in competing for access to interstate markets.
There has been no better friend than the federal Coalition in its support of the TFES and the expansion of the Scheme, which our exporters now enjoy.