Productivity Commission Review of Tasmanian Shipping
29th November, 2013
THE Productivity Commission will review support and costs of shipping across Bass Strait.The review, promised ahead of the 2013 election as part of an economic package for Tasmania, is part of the Coalition Government’s plan to provide Tasmanians with a future that includes more jobs, higher wages and better services.
In releasing the Terms of Reference today, Senator Abetz, Treasurer Joe Hockey and Deputy Prime Minister Warren Truss, said the island State’s economic conditions had drifted and declined under Labor-Green State and Federal Governments.
“Under Labor and the Greens Tasmania has the lowest gross state product per capita in Australia and the nation’s highest jobless rate,” Senator Abetz said.
“As an island State, the cost of freight across Bass Strait is one of the most critical issues facing Tasmania’s economy.”
“This review is aimed squarely at addressing that issue,” Senator Abetz said.
Senator Abetz said that the Coalition Government is committed to retaining Equalisation Schemes.
“With this review we are investing in Tasmania’s long term economic viability and job security,” Senator Abetz said.
“The Coalition introduced the Tasmanian Freight Equalisation Scheme in 1976, enhanced it in 1996 with the addition of the Bass Strait Vehicle Equalisation Scheme, and now we want to improve it further,” Senator Abetz said.
The Productivity Commission will be assisted by the Australian Competition and Consumer Commission on competition matters to provide a holistic review of the current situation and advise how to move forward – including ironing out any inefficiencies, inequities and anomalies.
The inquiry will examine Tasmania’s shipping costs, the competitiveness of its freight industry structure and economic infrastructure, and possible reforms to assist with more effective competition, investment and productivity growth in that State.
The Productivity Commission is due to report back to the Government in March next year and information on public consultation is available at www.pc.gov.au.
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