Tasmanian Freight Subsidy Arrangements

Public inquiry

This inquiry has concluded. The final inquiry report was released by the Australian Government on 24 May 2007.

The Australian Government asked the Productivity Commission to undertake a public inquiry into current arrangements for subsidising containerised and bulk shipping between the mainland and Tasmania, and to provide recommendations on appropriate future approach and/or arrangements. The inquiry encompassed the Tasmanian Freight Equalisation Scheme and the Tasmanian Wheat Freight Scheme, and will cover:

• the freight task between Tasmania and the mainland, including a comparison with that between regional and metropolitan mainland centres
• the size and causes of any freight cost disadvantage for eligible goods under these schemes, and the impacts on Tasmanian businesses
• the effectiveness of current arrangements in addressing any freight cost disadvantages
• any alternative mechanisms that would better meet the objectives of current arrangements.

Further information

• Productivity Commission to Review Containerised and Bulk Shipping between the Australian Mainland and Tasmania - Treasurer's press release (external site)
• About the public inquiry process