THE state’s ‘‘freight bottleneck’’ will hold back the trading opportunities presented this week by the visit of Chinese President Xi Jinping, according to five major Tasmanian industry groups who are ramping up the pressure on the government to extend a cargo scheme.
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The Productivity Commission inquiry into the cost of Bass Strait recommended expanding the Tasmanian Freight Equalisation Scheme to exports in an effort to solve the high costs facing exporters.
The existing scheme does not apply to goods destined for export.
Tasmanian Industry Group executive director Daniel Leesong said applying the recommendation was ‘‘fundamental to leveraging new opportunities and investment in the state’’.
‘‘With the great success of the TasInvest initiative, together with the signing of memoranda of understandings with China and the recently announced Free Trade Agreement, we need to solve the freight bottleneck that will hold these opportunities back,’’ Mr Leesong said.
Tasmanian Logistics Committee chairman Steve Henty said that to encourage growth and investment in the state, exporters needed competitive and efficient access to international markets.
‘‘We believe this would be optimally achieved through an extension to the existing TFES,’’ Mr Henty said.
Norske Skog general manager Rod Bender said changing the scheme would be an ‘‘immediate and effective solutions for all Tasmanian shippers’’.
Bass Liberal MHR Andrew Nikolic said he was in ‘‘heated agreement’’ with the groups on the need to extend the scheme to exports, and had been lobbying Prime Minister Tony Abbott and Deputy Prime Minister Warren Truss.
Tasmania has been without a direct international service since 2011, and the state government yesterday said it was still in discussions with the shipping industry to reintroduce a link.
Premier Will Hodgman said the state government was ‘‘pushing hard’’ to improve trade links.
‘‘As far as the state government is concerned, we’re doing our bit,’’ Mr Hodgman said.
‘‘This last week highlights how important it is for us to have an export link for Asian markets.’’
The Tasmanian Farmers and Graziers Association, Tasmanian Minerals and Energy Council and Forest Industries Association of Tasmania are also calling on the federal government to extend the scheme.