THE state government’s decision to pull out of subsidising a direct international shipping link from Bell Bay is an embarrassment and a shambles, Labor says. The government had signed a Memorandum of Understanding with Singapore-based Swire Shipping to investigate a direct international link. But Infrastructure Minister Rene Hidding said the federal government’s decision to expand the Tasmanian Freight Equalisation Scheme meant the link was no longer viable. ‘‘Given this materially different strategic context, it was not possible to reach an agreement with Swire,’’ he said. ‘‘We believe there may be future opportunities for Swire as the changes to the TFES are implemented.’’ Opposition Leader Bryan Green said the government’s freight policy was a ‘‘shambles’’. ‘‘From start to finish this has been an embarrassment for the Liberals,’’ Mr Green said. ‘‘From the moment they announced to the world they were willing to pay a private company $33 million it was doomed to fail. ‘‘In the end, the federal government has saved the state government from itself, but not before significant damage has been done to its reputation.’’ Earlier this month, the federal government announced that the TFES would be extended to goods going to international markets, with businesses able to claim rebates of $700 for each shipping container. Tasmanian Logistics Committee chairman Steve Henty said it was a prudent decision not to proceed with funding the link. He said the state now needed a long-term freight and logistics strategy to determine the best way forward. Mr Hidding said $33 million set aside to fund the link would now be spent on ‘‘job-creating infrastructure’’ to be revealed in the budget. But Mr Green said the money should instead be spent on essential services.
THE state government’s decision to pull out of subsidising a direct international shipping link from Bell Bay is an embarrassment and a shambles, Labor says.
The government had signed a Memorandum of Understanding with Singapore-based Swire Shipping to investigate a direct international link.
But Infrastructure Minister Rene Hidding said the federal government’s decision to expand the Tasmanian Freight Equalisation Scheme meant the link was no longer viable.
‘‘Given this materially different strategic context, it was not possible to reach an agreement with Swire,’’ he said.
‘‘We believe there may be future opportunities for Swire as the changes to the TFES are implemented.’’
Opposition Leader Bryan Green said the government’s freight policy was a ‘‘shambles’’.
‘‘From start to finish this has been an embarrassment for the Liberals,’’ Mr Green said.
‘‘From the moment they announced to the world they were willing to pay a private company $33 million it was doomed to fail.
‘‘In the end, the federal government has saved the state government from itself, but not before significant damage has been done to its reputation.’’
Earlier this month, the federal government announced that the TFES would be extended to goods going to international markets, with businesses able to claim rebates of $700 for each shipping container.
Tasmanian Logistics Committee chairman Steve Henty said it was a prudent decision not to proceed with funding the link.
He said the state now needed a long-term freight and logistics strategy to determine the best way forward.
Mr Hidding said $33 million set aside to fund the link would now be spent on ‘‘job-creating infrastructure’’ to be revealed in the budget.
But Mr Green said the money should instead be spent on essential services.
