HANDING an international shipper a multimillion-dollar subsidy would be scandalous in the wake of a significant TFES expansion, Opposition Leader Bryan Green says.
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The state government has promised Singapore-based Swire Shipping up to $33 million if it can establish a direct freight service to Asian ports.
However, a $203 million boost to federal Bass Strait freight subsidies, which will now cover all containers of produce shipped from Tasmania to the mainland, including those destined for international markets, has cast significant doubt over the deal.
An agreement between Swire and the state government, which paved the way for the company to conduct market testing for its direct Asian offering, expires tomorrow.
It is understood Swire is still clarifying how a new link would operate under the expanded scheme.
No money has changed hands between the two parties, and Mr Green said it must remain that way.
Mr Green said the federal government had handed its state counterparts a way out.
"Clearly the Commonwealth have come good on the freight subsidy," Mr Green said.
"It would be a scandal if $33 million was handed over to Swire."
The state government yesterday insisted the ball remained in Swire's court.
"We respect that the Australian government's decision means that it needs to undertake more market testing," Infrastructure Minister Rene Hidding said through a spokesman.
"Everyone is aware of the timelines and we should be in a position to provide some guidance on the outcomes soon."
