EXPORTERS are holding out hope for the extension of a federal freight scheme, despite the state government moving closer to signing a deal with a direct international shipper. Infrastructure Minister Rene Hidding said the government expected to enter into negotiations with Singapore-based company Swire ‘‘in the near future’’, eight months after the former Labor government did the same. But Tasmanian Logistics Committee chairman Steve Henty said many of the state’s major exporters would not be able to use a direct service due to its infrequency. Mr Henty said the extension of the Tasmanian Freight Equalisation Scheme to exports would be an immediate solution and the best way forward. ‘‘If a direct international link was established here in Tasmania then extending the TFES to exports would be off the table,’’ he said. ‘‘Until there’s a ship on the water there’s still hope there can be a resolution on freight equalisation for exports.’’ The Productivity Commission inquiry into the cost of Bass Strait recommended expanding the TFES to exports in the absence of a regular direct international service in an effort to solve the high costs facing exporters. The existing scheme does not apply to goods destined for export. Mr Hidding said while the government supported an extension, the federal government had indicated any changes must fit within the current funding envelope. ‘‘But any change on this basis threatens the vitally important Bass Strait shipping market and is, therefore, not acceptable,’’ Mr Hidding said. He said Tasmania could not afford to stand around waiting. Labor infrastructure spokesman Craig Farrell said the decision ‘‘exposed Mr Hidding as a fraud’’. ‘‘After more than eight dithering months in office Mr Hidding has made no more progress than the former Labor government,’’ Mr Farrell said. ‘‘The fact is that back in February this year the previous state government entered negotiations with Swire to provide the international shipping service.’’ Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said the move was a positive step forward, but he backed extending the TFES. ‘‘I understand the federal government is unlikely to support the extension of the TFES to include exports but we will be seeking discussion and a full explanation from government,’’ Mr Bailey said. Tasmanian Exporters Group chairman Bob Gozzi said an international link would be ‘‘terrific’’. ‘‘It will not only assist exporters but also allow opportunities for imports,’’ Mr Gozzi said. Tasmania has not had an international shipping link since 2011. The Liberals promised to reintroduce the link as an election commitment, pledging $33 million over three years to attract an international company.
EXPORTERS are holding out hope for the extension of a federal freight scheme, despite the state government moving closer to signing a deal with a direct international shipper.
Infrastructure Minister Rene Hidding said the government expected to enter into negotiations with Singapore-based company Swire ‘‘in the near future’’, eight months after the former Labor government did the same.
But Tasmanian Logistics Committee chairman Steve Henty said many of the state’s major exporters would not be able to use a direct service due to its infrequency.
Mr Henty said the extension of the Tasmanian Freight Equalisation Scheme to exports would be an immediate solution and the best way forward.
‘‘If a direct international link was established here in Tasmania then extending the TFES to exports would be off the table,’’ he said.
‘‘Until there’s a ship on the water there’s still hope there can be a resolution on freight equalisation for exports.’’
The Productivity Commission inquiry into the cost of Bass Strait recommended expanding the TFES to exports in the absence of a regular direct international service in an effort to solve the high costs facing exporters.
The existing scheme does not apply to goods destined for export.
Mr Hidding said while the government supported an extension, the federal government had indicated any changes must fit within the current funding envelope.
‘‘But any change on this basis threatens the vitally important Bass Strait shipping market and is, therefore, not acceptable,’’ Mr Hidding said.
He said Tasmania could not afford to stand around waiting.
Labor infrastructure spokesman Craig Farrell said the decision ‘‘exposed Mr Hidding as a fraud’’.
‘‘After more than eight dithering months in office Mr Hidding has made no more progress than the former Labor government,’’ Mr Farrell said.
‘‘The fact is that back in February this year the previous state government entered negotiations with Swire to provide the international shipping service.’’
Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said the move was a positive step forward, but he backed extending the TFES.
‘‘I understand the federal government is unlikely to support the extension of the TFES to include exports but we will be seeking discussion and a full explanation from government,’’ Mr Bailey said.
Tasmanian Exporters Group chairman Bob Gozzi said an international link would be ‘‘terrific’’.
‘‘It will not only assist exporters but also allow opportunities for imports,’’ Mr Gozzi said.
Tasmania has not had an international shipping link since 2011.
The Liberals promised to reintroduce the link as an election commitment, pledging $33 million over three years to attract an international company.
