Editorial | January 1, 2020

It's often the number one complaint for people on the island that the cost of shipping is hugely restrictive and adds significantly to the supply chain for anything - both in and out.

So they may initially welcome the proposal from the federal transport department to throw open the shipping lanes to foreign competition.

But the problem is that competition between domestic freight movers and overseas ships doesn't occur on a level playing field.

Overseas ships do not pay Australian wages and conditions, do not pay Australian taxes, and do not operate to Australian safety standards.

It would most likely mean the end for many of those employed by local shippers such as Searoad and Toll.

It's harder to understand what it would mean for the state owned TT-Line and its freight service on the Spirit of Tasmania.

But it is no doubt likely to be a concern if it was to distort the market.

It is actually the Rail, Tram and Bus Union which has blown the whistle on the departmental plans to deregulate shipping, because they can see the impact it would have on rail.

They are pointing out that this will be the end for the much heralded 'jobs bonanza' of the inland rail.

But it would also have significant consequences for shipping, particularly for an island state.

It may lead the likes of Searoad owner Chas Kelly to rethink plans for a replacement ship for the Searoad Tamar, which were revealed in December.

The company will make an $80 million investment over three years will see the Devonport-based ship replaced with the Liekut until new $190m permanent vessel arrives by the second half of 2023.

But alongside that Searoad's local base makes a significant contribution to the Tasmanian economy, both through direct spending, wages and the support of a myriad of community, sport and charity events.