TFES hurting King Island’s cost of living

The Senate Select Committee on the Tasmanian Freight Equalisation Scheme held its first hearing today on King Island, with committee chair, Senator Tammy Tyrrell, Independent Senator for Tasmania, saying she was grateful for the opportunity to hear about how the scheme works on the island from community members and business owners.

The cost of living is higher on King Island because freight costs are added to everything that comes on to the island, or is sent off the island. It costs $9 to buy 2L of milk on King Island because, as a perishable item, milk has to come by air.

Witnesses at the King Island hearing spoke about how they have to pay freight costs up front and then go through a clunky process for reimbursement, but they can only be reimbursed for some goods, and only for items that travel by sea.

The TFES is supposed 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.

It’s clear from the evidence we heard today that Tasmania’s freight equalisation scheme equalises nothing.