Flinders Island freight decision adds to business pain

Senate Select Committee on the Tasmanian Freight Equalisation Scheme chair Senator Tammy Tyrrell said Tasmania’s small and businesses continue to bear higher freight costs following a decision by Bass Strait Freight to move its Launceston depot, impacting customers transporting refrigerated and frozen goods to Flinders Island.

I established this inquiry because the TFES is no longer fit for purpose and is not helping the businesses it was supposed to support. The scheme was established in 1976 to compensate Tasmanian businesses because they don’t have access to the national road highway and rail networks and so have to rely on shipping.

The decision by Bass Strait Freight to move its Launceston depot is an operational one and the business is working with customers to transition their refrigerated and frozen food deliveries (previously delivered to Launceston) to Bridport instead.

But, it means businesses will have to take goods bound for Flinders Island to Bridport themselves, or arrange additional freight to the port. I hope small and medium businesses can find a cooperative solution to share the extra freight charges and administration.

This is yet another example of businesses having to wear extra shipping costs simply because they are based in Tassie. And if those charges are passed on, Flinders Island customers will pay more too. The committee will be speaking with witnesses from Flinders Island about the impact of freight at a hearing next month.