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The Tasmanian Forest Products Association (TFPA) has welcomed a commitment from the Federal Coalition that, if elected, they will oversee a review of the Tasmanian Freight Equalisation Scheme (TFES) and support Tasmanian businesses to the tune of $62 million while that review takes place. Source: Timberbiz Following the announcement, TFPA Chief Executive Officer, Nick Steel, said the review into the TFES is a much-needed boost for Tasmanian forestry businesses. “The TFES model, as it stands, is no longer fit for purpose. This scheme was set up almost 50 years ago and it’s clear it’s no longer working for Tasmanian businesses,” Mr Steel said. “The TFPA has long argued that the current indexation model in the scheme is out of date – no longer keeping up with the exponentially increasing costs to move freight to the mainland that we have seen in recent decades.” “Australia is currently in a cost-of-living crisis. It’s being particularly felt here in Tasmania, not only by consumers but also by businesses trying to sell to the other states. “Being an island, Tasmania is at a distinct disadvantage compared to other states when shipping goods to their markets. The Whitlam Government introduced the TFES in the 1970s to go some way to level the playing field between mainland and Tasmanian businesses. “However, to work properly it’s essential to regularly review the scheme to ensure Its original purpose remains relevant.” Mr Steel said it was clear the Coalition was listening to the concerns of businesses across the country, and he called on the Federal Labor to do the same. “This announcement by the Federal Coalition offers certainty to Tasmanian businesses looking to mainland markets during these tough economic times,” Mr Steel said. “To ensure Tasmanian businesses can continue to support our local economy, and employ thousands of Tasmanians, the Prime Minister should immediately match this announcement and give our industry the certainty it needs to continue to build a stronger Tasmania.”