KEY Tasmanian industry bodies have urged the State and Federal Governments to cover shipping exports, ahead of a meeting of an important economic committee, in Canberra tomorrow.
The extension of the Tasmanian Freight Equalisation Scheme (TFES) is being put forward as the main plank to finding a solution to high costs facing exporters.
The five industry groups - the Tasmanian Logistics Committee, Tasmanian Farmers and Graziers Association, Tasmanian Minerals and Energy Council, Forest Industries Association of Tasmania and Tasmanian Industry Group - say it would cost around $25m a year to extend the scheme.
"To encourage growth and investment in the state, exporters need competitive, efficient and expedient access to international markets and we believe that this would be optimally achieved through and extension to the existing TFES" said the chairman of the Tasmanian Logistics Committee Steve Henty.
Tasmania has been without a direct international service since 2011, when the AAA consortium pulled out.
But Tasmania's industry and shippers have rejected State Government plans to pump $33m into a direct export shipping service, promised in the lead up to this year's state election.
It's believed the Tasmanian government expects the Federal Government to pay to extend the freight equalisation scheme.
Island industries believe the $33m could be put towards freight equalisation, rather than to a service shippers don't want.
The matter is expected to be discussed by the Joint Commonwealth and Tasmanian Economic Council, co-chaired by the Prime Minister Tony Abbott and businessman Dale Elphinstone, in Canberra tomorrow.
There were sound reasons for using the $33m for the TFES, and not seeking an international service, Mr Henty said.
"Our northern ports are not suitable for Panamax style vessels, it would not be worthwhile for a ship of that size to come through," Mr Henty said.
Other concerns were regularity, with infrequent visits meaning working capital was tied up in warehouses, and the number of ports a direct service would call into.
Exporters shipped into Melbourne, then using up to 10 or 15 different services, to other parts of the world.
Industry and shippers wanted to continue using the Port of Melbourne, which had daily services to Asia and every second day, to the rest of the world.
"Through consultation with the wider freight community, we think the preferred option is one that uses Melbourne, and we are calling for the extension of the freight equalisation scheme to include exports," Mr Henty said.
"It's a very exciting time for Tasmania and what we don't want to see is investors holding back.
"Certainly they will be doing their due diligence, and if they are looking at investing here and see freight could be an issue, that could be holding them back."
The extension of the TFES was also a key recommendation of the Productivity Commission inquiry, five months ago.
