PRIME MINISTER Tony Abbott has told Parliament the Victorian government is “ripping off” Tasmanian exporters, by allowing a massive increase in stevedoring charges at the Port of Melbourne.
Mr Abbott was responding to a question from Denison MP Andrew Wilkie, that planned increases in the Tasmanian Freight Equalisation Scheme (TFES) would be swallowed by skyrocketing port fees.
“We want to encourage Tasmania to be an exporter, not just to Australia, but to the wider world, and that’s why we have extended the TFES to exports,” Mr Abbott said.
The Federal Budget contained $202 million over four years. to subsidise the cost of shipping export goods from Tasmania.
Under the expanded TFES, exporters would pay a flat rate of $700 per 20-foot equivalent unit.
Describing the Coalition as a “very good friend of Tasmania”, Mr Abbott said the Victorian government was slugging Tasmanian exports by allowing such a steep hike in port rentals.
“That’s the only way to describe it – the government is penalising the exports of Tasmania, by the ever increasing fees and charges on the Port of Melbourne.”
He called on Opposition Leader Bill Shorten to call Victorian Premier Daniel Andrews to tell him to “stop ripping off the exports of Tasmania.”
Mr Wilkie described the port licence fee as unconstitutional, and asked if the government would “bring the shysters in Victoria to heel” and force them to drop it.
"The federal government must use every power available to it to make sure the subsidies help Tasmanian exporters and don’t end up in the pockets of logistics companies and the Victorian government,’’ Mr Wilkie said.
The rent hike was on top of the $75 million Port Licence Fee the Victorian government imposed in 2012, which was indexed each year and already estimated to cost Tasmanian exporters $13 million a year.
"The Licence Fee imposed by the Victorian government is a tax on interstate trade and unconstitutional,’’ Mr Wilkie said.
"It’s beyond time for the Prime Minister to lead on this issue and for the federal government to intervene and bring the shysters in Victoria to heel by forcing them to drop their fees and the unconstitutional tax.’’
But global stevedoring firm DP World has warned it is facing rent hikes of up to 750 per cent by the Port of Melbourne at its West Swanson Terminal, wiping out the increase in the TFES.
Melbourne would be the most expensive of the company’s 65 international terminals, costing more than twice as much as the second most expensive.
DP World Australia chief executive Paul Scurrah met with Tasmania's Treasurer Peter Gutwein and Infrastructure Minister Rene Hidding, to discuss his concerns this week.
Mr Scurrah said the real risk was that the rent hikes would be a “great big fat tax” on Tasmanian consumers, imposed by the Victorians.
“We got a very aligned view on what could potentially happen and what the impact could be, with the increases at the Port of Melbourne,” Mr Scurrah said.
“They wanted to make sure no Tasmanian businesses were affected, they are in the unique position of having no real alternatives.”
The company was in ongoing discussions with the Port of Melbourne, but nothing had been resolved.
“We are keen to continue, in the hope that common sense will prevail – it could take quite a while, as they started with a very big number,” he said.
DP World had started the process of applying to the National Competition Council, to allow the entry of the ACCC to set an “access undertaking”, ensuring fair rents and no one company would have a monopoly on stevedoring.
“We are prepared to accept rents may go up, as they have in Brisbane and Sydney, but we have come to a good arrangement with both those governments and that’s the precedent which should be taken up by Victoria.”
The Victorian government has been contacted for comment.
