House debates

Monday, 1 August 2022

Statements by Members

Tasmania: Economy

1:36 pm

Photo of Andrew WilkieAndrew Wilkie (Clark, Independent) Share this | | Hansard source

One of the major brakes on economic development as Tasmania is the cost of getting people, vehicles and freight across Bass Strait, which is why we urgently need enhancement of both the Bass Strait freight equalisation scheme and the passenger vehicle equalisation scheme. Only then will Tasmanians enjoy genuine parity with mainland transport costs—which is more important than ever, as the state recovers from pandemic lockdowns and border closures and if Tasmania is to take full advantage of the current tourist boom.

The equalisation schemes have tried to cover the gaps, but frankly they've never come close to offsetting the added cost of crossing the strait. Moreover, some businesses tell me that it costs them more to pay the staff to fill out the paperwork to access the subsidies than what they actually save from the subsidies themselves. After the last federal government's attempt to further subsidise passenger vehicle fares resulted in gross price hikes for customers, rather than savings, it's clear that a more effective scheme is needed.

The cost for freight, vehicles and passengers to cross the strait should be no more than the cost to travel the same distance on Highway 1 on the mainland, so I call on the new government to finally implement an effective subsidy scheme that applies to all outbound and inbound people, vehicles and freight. Only then will Tasmania's economy be truly unleashed.