165:
97:
45:. The scheme aims to assist in alleviating the sea freight cost disadvantage incurred by shippers of eligible non‐bulk goods moved between Tasmania and the mainland of Australia. It provides a freight subsidy to producers selling into Australian domestic markets, but not for exports outside of Australia.
184:
Critics argued that applying TFES to low-value commodities might discourage the development of better uses for residues, raising concerns about the long-term financial viability of these practices. Despite the criticism, the
Federal Infrastructure Minister maintained that Majestic's use of the scheme
63:
Commencing 24 July 2024, the TFES was extended to include the transportation of drought-relief stockfeed to the Bass Strait islands. The amendment allows charitable organisations to receive assistance for sea freight costs for shipments from the mainland to King and
Flinders islands, retroactive from
121:
the
Federal Government could help Tasmanian freight export businesses to remain viable. Titmus argued that if Tasmanian businesses were better placed to compete with businesses in the mainland, the state's high unemployment rate might drop to levels more comparable to those in the rest of Australia.
114:
For example the boots made by
Blundstone in Hobart must first be shipped to Melbourne before being transferred to overseas-bound vessels, but yet they attract no subsidy for the Bass Strait leg even though this constitutes about half of the total freight cost from Tasmania to North America and other
176:
Majestic
Timbers took advantage of this scheme by exporting low-value logs (residues) in containers from Hobart to Asia, thereby qualifying for the $ 700 per container subsidy. While this use of the scheme was technically compliant, it drew criticism, notably from Independent MHR Andrew Wilkie, who
83:
The Scheme is demand driven, and while an annual budget is set for the total assistance available for claimants, in practice there is no upper limit to the total annual payments that could be made to claimants. In 2010–11 the budget for the Scheme was A$ 114.4 million. The combined forward estimate
120:
A month later, Leigh Titmus, the
Managing Director of Webster Limited wrote that the scheme was inequitable and expressed his support for calls for assistance to be increased. Titmus claimed that, by extending the Tasmanian Freight Equalisation Scheme to include export as well as domestic freight,
140:
review of
Tasmania's shipping costs. The review will look at the Tasmanian Freight Equalisation scheme, among other things, and will be completed by mid-2014. The Productivity Commission previously found in 2006 that the scheme discriminated against industries that could not tap it and did not
87:
For the 2000–10 period, freight headed north (to mainland
Australia) accounted for approximately three-quarters of all claims. Major northbound commodities were newsprint, prepared vegetables and paper. Major commodities that were southbound were wood pulp, fodder/straw or pellets, and barley.
180:
Traditionally, wood residues were shipped as bulk commodities, but the closure of the
Triabunna chip export facility in 2011 led to higher transport costs, making road-rail freight economically unfeasible. Sustainable Timber Tasmania had previously provided $ 5 million annually to support the
108:
called upon the
Government to enhance the Tasmanian Freight Equalisation Scheme. Wilkie told the Parliament that the amount of money available under the scheme was inadequate and that the scope of the scheme was too narrow, given that goods bound for export are excluded, saying:
84:
for the Scheme over the four years to 2013–14 was $ 486 million. In 2010–11, 1,544 businesses and individuals lodged a total of 11,233 claims for assistance under the Scheme, resulting in the payment of a total of $ 100 million to eligible claimants.
172:
In 2016, the Federal Government expanded TFES to include international exports from Tasmania, provided they were shipped in containers through any Australian port. This expansion aimed to support Tasmania's agricultural exports to Asian markets.
185:
was appropriate. While the Tasmanian forestry sector has experienced stability and growth due to the private plantation sector and fewer protests, the challenge of finding sustainable uses for lower-value timber persists.
151:
inquiry found that "there is no coherent economic rationale for the TFES and it falls well short of what is needed to improve the lagging competitiveness of the Tasmanian economy." Despite the criticism, Prime Minister
236:
73:
717:
648:
181:
industry. The government granted Majestic Timbers a contract to manage 180,000 tonnes annually for five years, with their business model heavily relying on the TFES subsidy.
305:
680:
137:
471:
261:
206:
606:
144:
In 2012, Michael Deegan of Infrastructure Australia had labelled the scheme "reactive, disjointed, fragmented and costly" and possibly open to rorting.
750:
372:
77:
760:
22:
246:
727:
634:
507:
280:
580:
398:
775:
685:
141:
operate as intended, but the Howard government announced the scheme was an important Australian Government program and could continue.
733:
132:
promised a review of the scheme. After the election, the coalition government confirmed that they would be going ahead with a joint
658:
125:
780:
313:
690:
765:
653:
210:
770:
554:
497:
156:
was said to have given his personal assurances to retain the scheme shortly after the inquiry report was released.
265:
444:
614:
241:
148:
133:
34:
164:
129:
755:
96:
421:
628:
287:
281:"Tasmanian Freight Equalisation Scheme Recommended Northbound Assistance Rates at 1 January 1978"
42:
531:
723:
503:
399:"Andrew Wilkie calls on the Government to enhance the Tasmanian Freight Equalisation Scheme"
21:
744:
105:
49:
681:"Freight subsidy scheme being exploited by Tasmania for forestry fix, says Wilkie"
72:
Administration of the Tasmanian Freight Equalisation Scheme is shared between the
200:
198:
177:
accused the state government of substituting state subsidies with federal funds.
153:
57:
371:
Bureau of Infrastructure, Transport and Regional Economics (October 2011).
38:
54:
Report of the Commission of Inquiry into Transport to and from Tasmania
532:"Deegan casts doubt on worth of Tasmanian Freight Equalisation Scheme"
37:
scheme to provide financial assistance to shippers of freight between
420:
FreshPlaza: Global Fresh Produce and Banana News (14 February 2013).
286:. Canberra: Australian Government Publishing Service. Archived from
163:
95:
20:
358:
346:
334:
260:
Albanese, Anthony; Sid Sidebottom; Dick Adams (24 May 2012).
104:
On 6 February 2013, Tasmanian independent federal politician
209:. Department of Infrastructure and Transport. Archived from
237:"Editorial: Bass Strait needs to be treated like a highway"
56:, which is also known as the Nimmo Report, by Commissioner
373:"Tasmanian Freight Schemes—Parameter Review, October 2011"
52:. It began in July 1976, following the submission of the
716:
Australian National Audit Office (22 November 2011).
74:
Department of Infrastructure and Regional Development
674:
672:
670:
668:
207:"Background - Tasmanian Freight Equalisation Scheme"
422:"AU: Greens to unveil new Tasmanian freight scheme"
649:"Abbott to drive Tasmanian freight agenda: Truss"
502:. Melbourne, Australia: Productivity Commission.
138:Australian Competition & Consumer Commission
112:
230:
228:
16:Scheme between mainland Australia and Tasmania
581:"Tasmanian Ports and Freight Strategy Report"
8:
378:. Department of Infrastructure and Transport
205:Department of Infrastructure and Transport.
555:"Federal police look at port rorts claims"
306:"TFES to Include Drought-relief Shipments"
496:Productivity Commission (24 May 2007).
194:
607:"Handle with care: our freight future"
499:Tasmanian Freight Subsidy Arrangements
279:Bureau of Transport Economics (1978).
719:Tasmanian Freight Equalisation Scheme
359:Australian National Audit Office 2011
347:Australian National Audit Office 2011
335:Australian National Audit Office 2011
31:Tasmanian Freight Equalisation Scheme
7:
722:. Australian National Audit Office.
443:Alison Andrews (20 September 2013).
262:"A New Deal for Tasmanian Exporters"
68:Administration, budget and claimants
686:Australian Broadcasting Corporation
472:"Flawed Tasmanian subsidy to stay"
397:Wilkie, Andrew (6 February 2013).
48:The scheme was first announced by
14:
679:Compton, Leon (9 November 2024).
637:from the original on 25 July 2014
470:Hepworth, Annabel (25 May 2012).
751:1976 establishments in Australia
160:International exports misconduct
100:Logs piled at the Port of Burnie
605:Lowe, Michael (5 August 2012).
445:"Export money unlikely to flow"
168:Macquarie Wharf, Hobart in 2017
761:Connections across Bass Strait
657:. 25 June 2014. Archived from
630:Tasmanian Shipping and Freight
235:Titmus, Leigh (4 March 2013).
1:
553:Arndt, Dinah (30 May 2012).
304:Crisp, Dale (24 July 2024).
78:Department of Human Services
64:1 May 2023 until June 2025.
654:Australasian Transport News
633:, Productivity Commission,
797:
776:Public policy in Australia
586:. Infrastructure Australia
530:McKay, Rob (28 May 2012).
25:From Australia to Tasmania
579:Deegan, Michael (2012).
92:Criticisms of the scheme
149:Productivity Commission
134:Productivity Commission
169:
124:In the lead-up to the
118:
117:
101:
26:
781:Transport in Tasmania
534:. Supply Chain Review
167:
126:2013 federal election
111:
99:
35:Australian Government
24:
617:on 28 November 2012.
293:on 28 November 2012.
766:Economy of Tasmania
736:on 13 October 2012.
213:on 6 December 2010
170:
102:
43:mainland Australia
27:
771:Freight transport
729:978-0-642-81218-6
509:978-1-74037-217-6
788:
737:
732:. Archived from
703:
702:
700:
698:
693:on 4 August 2024
689:. Archived from
676:
663:
662:
645:
639:
638:
625:
619:
618:
613:. Archived from
602:
596:
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567:
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541:
539:
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368:
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338:
332:
326:
325:
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321:
316:on 4 August 2024
312:. Archived from
310:Daily Cargo News
301:
295:
294:
292:
285:
276:
270:
269:
264:. Archived from
257:
251:
250:
249:on 4 March 2013.
245:. Archived from
232:
223:
222:
220:
218:
202:
147:In June 2014, a
796:
795:
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790:
789:
787:
786:
785:
741:
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715:
712:
707:
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694:
678:
677:
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661:on 1 July 2014.
647:
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589:
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583:
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528:
524:
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469:
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464:
454:
452:
451:. Fairfax Media
442:
441:
437:
427:
425:
419:
418:
414:
404:
402:
401:. Andrew Wilkie
396:
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196:
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94:
70:
17:
12:
11:
5:
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728:
711:
708:
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704:
664:
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597:
571:
545:
522:
508:
488:
476:The Australian
462:
435:
412:
389:
363:
351:
339:
327:
296:
271:
268:on 5 May 2013.
252:
224:
193:
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161:
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93:
90:
69:
66:
15:
13:
10:
9:
6:
4:
3:
2:
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560:
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549:
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533:
526:
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511:
505:
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492:
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477:
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463:
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423:
416:
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400:
393:
390:
374:
367:
364:
361:, p. 17.
360:
355:
352:
349:, p. 16.
348:
343:
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337:, p. 15.
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116:
115:destinations.
110:
107:
106:Andrew Wilkie
98:
91:
89:
85:
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79:
75:
67:
65:
61:
59:
55:
51:
50:Gough Whitlam
46:
44:
40:
36:
32:
23:
19:
734:the original
718:
695:. Retrieved
691:the original
684:
659:the original
652:
643:
629:
623:
615:the original
611:The Examiner
610:
600:
588:. Retrieved
574:
562:. Retrieved
559:The Examiner
558:
548:
536:. Retrieved
525:
513:. Retrieved
498:
491:
479:. Retrieved
475:
465:
453:. Retrieved
449:The Examiner
448:
438:
426:. Retrieved
424:. FreshPlaza
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403:. Retrieved
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380:. Retrieved
366:
354:
342:
330:
318:. Retrieved
314:the original
309:
299:
288:the original
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266:the original
255:
247:the original
242:The Advocate
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215:. Retrieved
211:the original
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123:
119:
113:
103:
86:
82:
71:
62:
53:
47:
30:
28:
18:
756:Bass Strait
590:28 November
564:28 November
538:28 November
515:28 November
154:Tony Abbott
58:James Nimmo
745:Categories
481:11 October
455:11 October
382:13 October
217:13 October
189:References
130:Coalition
697:4 August
635:archived
320:4 August
76:and the
39:Tasmania
710:Sources
428:7 March
405:7 March
726:
506:
128:, the
33:is an
584:(PDF)
376:(PDF)
291:(PDF)
284:(PDF)
724:ISBN
699:2024
592:2012
566:2012
540:2012
517:2012
504:ISBN
483:2013
457:2013
430:2013
407:2013
384:2012
322:2024
219:2012
136:and
41:and
29:The
747::
683:.
667:^
651:.
609:.
557:.
474:.
447:.
308:.
239:.
227:^
197:^
80:.
60:.
701:.
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568:.
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519:.
485:.
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324:.
221:.
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
