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Tasmanian freight subsidy arrangements (2007)

Inquiry report

This inquiry report was released on 24 May 2007.

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  • Contents

Preliminaries
Cover, Copyright, Terms of reference, Contents, Abbreviations, Key points, Overview, Findings and recommendations

1   Introduction and scope of the inquiry
1.1   Background
1.2   What has the Commission been asked to do?
1.3   How has the Commission approached its task?

2   Overview of the schemes
2.1   The Tasmanian Freight Equalisation Scheme
2.2   The Tasmanian Wheat Freight Scheme

3   Tasmania's freight task and freight cost disadvantages
3.1   The Tasmanian freight task
3.2   The cost of freight
3.3   Indirect elements of interstate freight disadvantage

4   Impact on Tasmania and Australia
4.1   Impacts on Tasmanian businesses
4.2   TFES assistance by commodity
4.3   Quantifying the impact

5   Assessment of scheme design
5.1   Road freight equivalent cost
5.2   Door-to-wharf and wharf-to-door adjustments
5.3   Route scaling factors
5.4   Intermodal cost adjustment
5.5   The median wharf-to-wharf disadvantage, class thresholds and sliding scale parameters
5.6   Reduced assistance for high density cargo
5.7   Potential leakage of subsidy to carriers and freight forwarders
5.8   Calls for changes in eligibility
5.9   Are the Bass Strait islands well served?
5.10   Some administration and compliance cost concerns
5.11   The Tasmanian Wheat Freight Scheme

6   Rationales for the schemes
6.1   Rationales for subsidising Tasmanian sea freight
6.2   The Commission's assessment

7   Alternatives to current arrangements
7.1   Require original wharf-to-wharf invoices
7.2   Pay a flat rate per TEU only
7.3   Change the basis upon which assistance is paid to wheat shipments

A   Inquiry processes and consultation
A.1   Introduction
A.2   Submissions
A.3   Meetings with interested parties
A.4   Public hearings

B   The Prime Minister's statement of 7 September 2006

References