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Tasmania wants Air freight subsidy

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TASMANIA’s biggest airport says that air freight should be subsidised by the Commonwealth.

The Tasmanian Freight Equalisation Scheme covered sea freight but not air freight reduced freight market competition, Hobart Airport argued in a submission to the Productivity Commission’s inquiry into Bass Strait shipping and freight.

“Reducing the comparative attractiveness of air freight through the subsidisation of other transport modes also impacts Tasmania’s broader economy,” the submission said.

“For example, freight is an important revenue component for passenger airlines and supports passenger routes and capacity.”

It said air freight was a crucial option for the future of Tasmania’s high-value producers.