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Increase in funding for Tasmanian Freight Equalisation Scheme.



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1999-2000 BUDGET

MEDIA RELEASE

 

Senator the Hon. Ian Macdonald

Minister for Regional Services, Territories and Local Government

 

1999 BUDGET HIGHLIGHTS

 

INCREASE IN FUNDING FOR TASMANIAN FREIGHT EQUALISATION SCHEME

 

Jobs and investment in Tasmania will r eceive a boost in this year’s Federal Budget.

 

The Tasmanian Freight Equalisation Scheme will receive an increase in funding of some $15m per annum over the current funding level, with some $56m provided to eligible shippers in 1999-2000, as part of the Government’s Budget initiatives the Regional Services, Territories and Local Government Minister, Senator Ian Macdonald, announced today.

 

The Budget funding gives effect to a Government election commitment to modify the Tasmanian Freight Equalisation Scheme (TFES) in accordance with the recommendations of the TFES Review Authority’s June 1998 advisory opinion.

 

“The implementation of the recommendations provides a boost for Tasmania through an increase in TFES funding of some $15m per annum. The important benefits for Tasmanian shippers include:

 

·  A significant increase in assistance payments to shippers with resultant benefits for Tasmanian industry and employment;

 

·  The adoption of a more appropriate and transparent basis of assistance for the transport cost disadvantage incurred by shippers; and

 

·  The removal of a number of assistance anomalies which were present under the old Scheme, including lower levels of assistance for newsprint shipments,” Senator Macdonald said.

 

The Minister said that the new as sistance arrangements would be implemented from 1 July 1999.

 

Senator Macdonald thanked the TFES Review Authority, chaired by the Hon. Peter Nixon, for carrying out the review in “a most professional, open, and comprehensive manner”.

 

The Minister also commended the valuable contribution of industry participants in presenting written and oral submissions to the Review Authority.

 

MBudget8/99

11 May1999

 

Media Contact: David Moore 02 6277 760 or 0417 774 724

Townsville 07 4771 3066 Canberra 02 6277 7060

 

 

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