Andrew Nikolic (Bass, Liberal Party) Share this | Link to this | Hansard source

While campaigning full time over two years as the Liberal candidate for Bass, I would often be asked, 'What are your key priorities, the things you intend to fight for should you become our local member?' The top three priorities on my list were enhancing the Tasmanian Freight Equalisation Scheme, securing funding for Tranche II irrigation schemes and helping to deliver a healthier Tamar River. I am pleased to say that all three priorities have now been realised, and, with my colleagues from Braddon and Lyons and our hardworking Senate team, we are working on a range of new imperatives.

This morning I would like to focus on the expanded freight equalisation scheme, which the Prime Minister announced in Northern Tasmania last Friday. It is a huge and welcome boost for Tasmania, which many have described in positive terms as a 'game changer'. It means that more people in more markets will be able to buy quality Tasmanian goods. Increasing our annual investment in the freight equalisation scheme by more than 40 per cent helps make businesses in my electorate of Bass more competitive. It means higher growth and more local jobs. My Tasmanian Liberal colleagues and I have persistently lobbied the Prime Minister and his cabinet ministers since the economic growth plan for Tasmania was announced on 15 August 2013. The reason for that strong, persistent advocacy is simple: we are an island state. We do not have federally funded highways attracting billions in funding because our highway is the Bass Strait. So shipping and freight services are critical to Tasmania's competitiveness. Tasmanian shippers face significant challenges in transporting and selling their goods. So the Prime Minister's announcement of a $203 million expansion to the freight equalisation scheme was universally greeted as the most wonderful news.

Importantly, from 1 January 2016, the scheme will be expanded to include goods going to international markets, a recommendation by the Productivity Commission in its inquiry on Tasmanian shipping and freight. This will mean new opportunities for Tasmanian industries, greater competitiveness and extension of the customer base for Tasmanian goods beyond traditional mainland markets. The flat rate for the expanded elements of the scheme will be $700 per standard container. Of great importance to me also is that a 15 per cent premium will apply to shipments to and from the Furneaux Group of islands in my electorate of Bass. That recognises the higher shipping costs faced by islanders.

So thank you, Prime Minister and your cabinet colleagues, for listening to the advocacy of the Tasmanian Liberal team. Thank you for acting in such a decisive way to address this longstanding inequity. On behalf of the people of northern Tasmania and, in particular, my electorate of Bass, I must say that we greatly appreciate this enhancement to a scheme that is truly a strategic enabler of Tasmania's future prosperity.