The Government will not be implementing the proposals in the draft Productivity Commission Report into Tasmanian Freight Subsidy Arrangements.
The Government will not be phasing out the Tasmanian Freight Equalisation Scheme and will not be abolishing the Tasmanian Wheat Subsidy Scheme.
The Tasmanian Freight Equalisation Scheme was introduced by a Coalition Government in 1976. The Scheme remains an important element of Australian government programmes that equalise cost disadvantages between the States and Territories.
The Government will continue to review Tasmanian freight subsidy arrangements to ensure they are operating as intended and to the benefit of all Tasmanians.
I wish to thank my Tasmanian colleagues for the representations they have made to me on this issue. These representations have been instrumental to the Government's decision to maintain the current arrangements.