TASMANIA’S largest exporters are confident a decision on the future of Bass Strait subsidies is fast approaching.
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It is 12 months since the federal government received a Productivity Commission report into Tasmanian shipping and freight.
Among the most contentious recommendations was extending the Tasmanian Freight Equalisation Scheme to include all northbound commodities, including those destined for international markets.
The extension would carry an estimated additional cost of $25 million a year.
Tasmanian Logistics Committee chairman Steve Henty met with Infrastructure Minister Warren Truss’ office last week, and said it was clear the government had been weighing up extending the scheme.
Mr Henty said he left the meeting slightly more confident of securing an expanded TFES.
However, Mr Henty said Tasmanians may have to wait until the May federal budget to know the final outcome.
‘‘The federal government has promised to make its decision within this budget cycle,’’ Mr Henty said.
‘‘But in any event, looking at their updated forward estimate projections will give us the answer anyway.’’
‘‘If the May budget is released and there’s no changes to freight equalisation money, we know they’ve decided against it.’’
Opposition Leader Bryan Green said he was worried the freight subsidies may not be maintained.
‘‘We believe, obviously, that Tasmania would be at a massive disadvantage to mainland states if we didn’t have those subsidies in place,’’ he said.
Tasmanian independent federal MPs Andrew Wilkie and Jacqui Lambie yesterday urged the government to reveal its position on the Bass Strait subsidies.
A spokesman for Mr Truss said the government would formally respond to the report soon.
Any redesign of the scheme should not disadvantage existing users, Tasmanian Infrastructure Minister Rene Hidding said through a spokesman.
‘‘Any redesign of the scheme should expand access to the scheme for currently ineligible businesses,’’ the spokesman said.
‘‘It should not trade off access to the scheme for new businesses against a reduction in the subsidy for many existing beneficiaries.’’