Mark Baker (Braddon, Liberal Party) Share this | Link to this | Hansard source

I rise tonight to remind the parliament of the importance of the Tasmanian freight equalisation scheme for Tasmania’s continued development and ability to lock in the future economic prosperity of the state. As many of you would be aware, the Productivity Commission is presently undertaking an inquiry into the Tasmanian freight equalisation scheme, with its final report due to be handed down in two weeks time. Following strong representations from Tasmania’s Liberal parliamentarians, it was wonderful that the Prime Minister recently announced that the scheme will stay, which is great news for Tasmania.

The freight equalisation scheme is vital to the future economic wellbeing of Tasmania. Major businesses rely heavily on this scheme to be able to compete on the national stage. Without this scheme, many businesses would not be viable as they would face unfair additional transport costs across Bass Strait. In light of the determination of Tasmania’s Liberal parliamentarians to ensure the long-term future of the scheme, we have formed the federal Liberal freight equalisation committee which is chaired by Senator Richard Colbeck and includes me, the federal member for Bass Michael Ferguson, and the President of the Senate Senator the Hon. Paul Calvert.

Our committee will consider the Productivity Commission’s final report and will be conducting a series of hearings around Tasmania in the north-west, north and south with businesses and organisations reliant upon the scheme. The objective of the committee is to develop policy recommendations to be presented to the Prime Minister to not only ensure the long-term future of the Tasmanian freight equalisation scheme but also appropriately improve the scheme to effectively meet current day requirements. I am pleased to inform the parliament that our first hearing begins next Monday, 11 December and there is strong interest from Tasmanian businesses and organisations who wish to have input into the process.

Wonderful things happen in the state of Tasmania. Tasmania has such industries as Caterpillar Elphinstone, which will soon be the No. 1 assemblers of underground mining equipment in the world, and Delta Hydraulics, which prepare the pistons in hydraulics for all major mining companies in Australia. We have some of the best seafood and agriculture. On the north-west coast alone, 80 per cent of Australia’s packaged and frozen vegetables are processed. The timber industry provides select and unique timbers to the rest of the country. It is so imperative that this scheme remains in place to protect those industries and the economic wellbeing of Tasmania.

It is important to remember that Liberal governments have a strong and proud record of supporting this scheme and supporting Tasmania’s cost disadvantage as an island state. The Liberal federal government was responsible for the implementation of the first Tasmanian freight equalisation scheme in 1976 and then significantly enhancing the scheme following a review in 1998. The Tasmanian Liberal team remain committed to retaining that support into the future and perhaps the only present unknown is whether the new Labor leadership will also provide an ironclad guarantee for the scheme. This is a matter that will be closely scrutinised given the risk that it could pose to Tasmania’s future economic prosperity and future development. As Christmas draws near, I would like to close by reiterating how proud I am to be a member of the Howard government, which continues to deliver economic prosperity to all Australians. I wish everyone a happy and merry Christmas.

Question agreed to.