THE TASMANIAN Government says it has struck a deal with Victoria, to ensure the state will be protected - by law - from planned fee rises at the Port of Melbourne.
Stevedoring company DP World is challenging fee rises of up to 760 per cent, which it said would make the port the most expensive in the world.
Victorian Treasurer Tim Pallas said legislation was being prepared for the sale of the lease of the Port.
A spokesman for Mr Pallas said the treasurer welcomed the positive discussions he had with his Tasmanian counterpart, and had assured him the lease of the port would not adversely impact Tasmania
The Tasmanian Treasurer Peter Gutwein said he had received assurances Victoria understood the port’s importance to Tasmania’s economy.
“Mr Pallas and the Victorian Government certainly know the impact that cost increases at the Port of Melbourne would have on Tasmania,” Mr Gutwein said
“Over the course of our discussions I have put Tasmania’s case and the Victorian Government has indicated very clearly that they have heard our concerns.
“Legislation will be introduced shortly into the Victorian Parliament and we understand that legislation will show that Victoria has heard our concerns,” he said.
Infrastructure Minister Rene Hidding said it was a strong indicator of a positive outcome for Tasmania.
“This is an important step, because legislation would set in stone the assurances that the Victorian Government has made to the Treasurer and I over recent weeks.
“Around 98 per cent of Tasmania’s exports go through the Port of Melbourne and we are one of its largest customers, with over 25 percent of the Port’s total volumes.”
DP World chief executive Paul Scurrah said he believed the PoM was imposing the rent hike, because “it believes the market has moved, on the basis of a new entrant.”
Under the proposal, rental costs on DP World Melbourne’s West Swanson Terminal would rise from $15 per square metre to $120 per square metre.
The company was notified of the rent increase on 24 December 2014.
Mr Scurrah met with the Tasmanian Government last week and didn’t rule out further action, on the rent hikes.
“That may change in future; it’s in the common interest to make sure the PoM isn’t make uncompetitive, by what could be seen as a short term, financial grab,” Mr Scurrah said.
