SOARING fuel costs and challenges surrounding the Tasmanian Freight Equalisation Scheme (TFES) have been highlighted at a public forum in Hobart.
Tasmanian infrastructure and transport minister Kerry Vincent told the Tasmanian Freight and Logistics Forum that the global fuel situation was weighing heavily upon trade.
“The good news is Tasmania remains secure and well-connected to the national supply chains, with fuel continuing to move as expected,” he said.
“The Tasmanian government continues to closely monitor fuel stocks, shipping movements and industry impacts, working closely with fuel suppliers and the Australian government."
Mr Vincent said while fuel prices were influenced by global factors, governments could and should step in where possible to provide relief.
He welcomed the decision by Prime Minister Anthony Albanese to halt the fuel excise and reduce the fuel-based heavy vehicle road user charge to zero cents per litre for the next three months.
“The Tasmanian government has also continued to work towards national policies to support economic stability for Tasmanians,” he said.
“While there is uncertainty ahead, what I know for certain is we can rely on the Tasmanian and Australian logistics sector to operate professionally and with dedication through the challenging conditions.
“Our economy and supply chains always work best with the private and public sectors working in the same direction to achieve common goals.”
While acknowledging industry strengths, Mr Vincent identified challenges with the Tasmanian Freight Equalisation Scheme.
“We all recognise the inherent cost disadvantage of trade from Tasmania. It is why the Tasmanian government remains a strong advocate for reform of the Tasmanian Freight Equalisation Scheme (TFES).
“Industry has been clear. The TFES has been complex, administratively burdensome and increasingly poor value for the effort and the cost of submitting a claim. We welcome the Senate Select Committee inquiry and the current independent review of the TFES and the best rate passenger vehicle equalisation system.
“Together, industry and government are united in seeking a simpler and more effective and fit for purpose scheme well into the future, supporting business competitiveness and easing cost of living pressures for Tasmanians.”
Mr Vincent also spoke about the importance of air freight and that the state government continued to support airlines to maintain essential passenger and time sensitive freight services.
The Tasmanian Freight & Logistics Forum is being at the University of Tasmania’s Sandy Bay Campus.