Call answered by Federal Opposition Leader on TFES

Fruit Growers Tasmania | Friday, 21 March 2025, 2.30pm

Fruit Growers Tasmania, on behalf of the states’ fruit industry, applauds today’s announcement by the Federal Opposition Leader Peter Dutton, that the Liberal party will support the request for immediate change to the Tasmanian Freight Equalisation Scheme (TFES).

Tasmanian producers (and manufacturers) trading interstate and overseas rely on the scheme to address the significant cost disadvantage of sea freight over road and rail freight.

Owner of Tasmanian Berries and Fruit Growers Tasmania’s board member, Andrew Terry stated, “The support that we have been promised here today on the Freight Equalisation Scheme, will make a fundamental and immediate difference to my business, and all those businesses that trade in interstate and overseas markets.

“I believe the economic benefit of these changes will be felt across the State’s regional communities where our business operates.”

Following the recent Federal Senate Committee inquiry into the Scheme which concluded with a final report in February, Fruit Growers Tasmania together with the Tasmanian Chamber of Commerce and Industry (TCCI) and Norske Skog Boyer, have been calling for three immediate changes to the Scheme. These would see an increase in the calculated support for sea freight disadvantage, the intermodal allowance, and the export freight assistance rate.

While these are the three key changes to the Scheme, there is also the southbound freight assistance, and the intrastate freight assistance (between the main island of Tasmania and King and Flinders Islands) which the Liberal Party have also agreed to support. These changes will amount to $62 million to enhance the Scheme in the short term. With a further promise to undertake a full review of the Scheme.

Andrew Terry went on to say, “It is so important that change happens as soon as possible. The immediate increase will provide some much-needed relief for Tasmanian fruit growers who send more than 85 per cent of their fruit to interstate and international markets.

“We think the increased funding commitment, is a drop in the ocean compared to the tens of billions in value that Tasmanian industries generate through interstate and overseas trade.”

The proposed changes are based on the Commonwealth government figures, these show that there has been an increase in the cost over the past 25 years of the scheme but at the same time there has been no increase in the level of assistance.