THE Tasmanian government and freight heavyweights have welcomed beefed up safeguards against excessive fee rises at the Port of Melbourne. The Victorian government and Australian Competition and Consumer Commission have agreed to tighter oversight of the port’s prices before its impending sale. A deal was this week struck to keep the regulator out of future pricing structures at the port, and brings the site a significant step closer to privatisation. Earlier this year, the state government, opposition and shipping industry all raised serious fears for Tasmanian business before the sale, after the port was accused of trying to jack up rents by 750 per cent. However, its new owners will be required to face regular rent reviews after changes adopted this week, with disputes with new or renewing tenants to be resolved by an independent expert. The increased oversight will also mean if the port’s leaseholder is found to misuse its monopoly market power by setting exorbitant rents, the Victorian government can tear up its lease. Tasmanian Infrastructure Minister Rene Hidding said the port was a vital link for Tasmanian exports, describing these measures as another big win. ‘‘The ACCC has stood up for the economies, including Tasmania, that require good access and continued efficiency in our shipping service across Bass Strait,’’ he said. ‘‘If leased, the Port of Melbourne would be subject to more stringent oversight than any other port in the country.’’ Tasmanian Logistics Committee chairman Steve Henty said his industry was always looking for greater certainty. ‘‘Any increase in safeguards that protect leases at the Port of Melbourne is a good thing for Tasmanian operators and shipping providers,’’ he said. ‘‘It’s obvious the Victorian government are listening to concerns and are tying up some of the deficiencies in their [port sale] bill causing the greatest amount of angst.’’ The Melbourne port is expected to be sold in early 2016.
THE Tasmanian government and freight heavyweights have welcomed beefed up safeguards against excessive fee rises at the Port of Melbourne.
The Victorian government and Australian Competition and Consumer Commission have agreed to tighter oversight of the port’s prices before its impending sale.
A deal was this week struck to keep the regulator out of future pricing structures at the port, and brings the site a significant step closer to privatisation.
Earlier this year, the state government, opposition and shipping industry all raised serious fears for Tasmanian business before the sale, after the port was accused of trying to jack up rents by 750 per cent.
However, its new owners will be required to face regular rent reviews after changes adopted this week, with disputes with new or renewing tenants to be resolved by an independent expert.
The increased oversight will also mean if the port’s leaseholder is found to misuse its monopoly market power by setting exorbitant rents, the Victorian government can tear up its lease.
Tasmanian Infrastructure Minister Rene Hidding said the port was a vital link for Tasmanian exports, describing these measures as another big win.
‘‘The ACCC has stood up for the economies, including Tasmania, that require good access and continued efficiency in our shipping service across Bass Strait,’’ he said.
‘‘If leased, the Port of Melbourne would be subject to more stringent oversight than any other port in the country.’’
Tasmanian Logistics Committee chairman Steve Henty said his industry was always looking for greater certainty.
‘‘Any increase in safeguards that protect leases at the Port of Melbourne is a good thing for Tasmanian operators and shipping providers,’’ he said.
‘‘It’s obvious the Victorian government are listening to concerns and are tying up some of the deficiencies in their [port sale] bill causing the greatest amount of angst.’’
The Melbourne port is expected to be sold in early 2016.
