INFRASTRUCTURE Minister Rene Hidding has poured cold water on calls to extend Bass Strait shipping subsidies, saying the federal government is not in a position to contribute the necessary funds. Tasmanian federal MPs Jacqui Lambie and Andrew Wilkie joined forces in Canberra yesterday, urging the government to solve the state's Bass Strait transport woes. The pair said shipping costs across the 420-kilometre stretch of water were a handbrake on the Tasmanian economy. Mr Wilkie said the crisis could be easily fixed by boosting the $130million a year Tasmanian Freight Equalisation Scheme to $300 million per year. As it stands, the Bass Strait shipping subsidy only applies to some domestic freight. Mr Wilkie urged the government to expand the scheme to include all freight across Bass Strait, including goods destined for international markets after brief stopovers in Melbourne. He said the outlay would be easily offset by the resultant number of residents no longer needing welfare. "What is needed is an effective subsidy on all people, vehicles and freight coming in and out of Tasmania by sea across Bass Strait," Mr Wilkie said. Senator Lambie said that until the Bass Strait scheme was addressed, Tasmania would not pick up economically. "This is the heart of one of our biggest problems in Tasmania and it needs to be fixed immediately," she said. The federal government is yet to respond to a Productivity Commission report into Tasmanian shipping and freight, which recommended extending the scheme. Mr Hidding said the state government had been lobbying its federal counterparts hard to boost the subsidy, but had been told no new money was on the table. "In that space, I need to move forward with our plans to institute a direct international shipping service," he said. Mr Hidding yesterday signed a Memorandum of Understanding to bring a Singapore-based shipping company to Tasmania. "We expect to see Swire operatives in Tasmania working with the freight market to market-test, to move forward to what hopefully would be a proposition for a viable, permanent international shipping service for Tasmania," he said.
INFRASTRUCTURE Minister Rene Hidding has poured cold water on calls to extend Bass Strait shipping subsidies, saying the federal government is not in a position to contribute the necessary funds.
Tasmanian federal MPs Jacqui Lambie and Andrew Wilkie joined forces in Canberra yesterday, urging the government to solve the state's Bass Strait transport woes.
The pair said shipping costs across the 420-kilometre stretch of water were a handbrake on the Tasmanian economy.
Mr Wilkie said the crisis could be easily fixed by boosting the $130million a year Tasmanian Freight Equalisation Scheme to $300 million per year.
As it stands, the Bass Strait shipping subsidy only applies to some domestic freight.
Mr Wilkie urged the government to expand the scheme to include all freight across Bass Strait, including goods destined for international markets after brief stopovers in Melbourne.
He said the outlay would be easily offset by the resultant number of residents no longer needing welfare.
"What is needed is an effective subsidy on all people, vehicles and freight coming in and out of Tasmania by sea across Bass Strait," Mr Wilkie said.
Senator Lambie said that until the Bass Strait scheme was addressed, Tasmania would not pick up economically.
"This is the heart of one of our biggest problems in Tasmania and it needs to be fixed immediately," she said.
The federal government is yet to respond to a Productivity Commission report into Tasmanian shipping and freight, which recommended extending the scheme.
Mr Hidding said the state government had been lobbying its federal counterparts hard to boost the subsidy, but had been told no new money was on the table.
"In that space, I need to move forward with our plans to institute a direct international shipping service," he said.
Mr Hidding yesterday signed a Memorandum of Understanding to bring a Singapore-based shipping company to Tasmania.
"We expect to see Swire operatives in Tasmania working with the freight market to market-test, to move forward to what hopefully would be a proposition for a viable, permanent international shipping service for Tasmania," he said.
