Legislative Council, Wednesday 22 March, 2023

Ms FORREST question to LEADER of the GOVERNMENT in the LEGISLATIVE COUNCIL, Mrs HISCUTT

I have a few other questions but I need to go through some information to outline the nature of the questions. If I do not have time we will have to do the rest tomorrow. There is a bit of a preamble to this, and I apologise in advance.

With regard to King Island shipping services and freight charges, I note TasPorts charge wharfage for the use of port facilities.

I am informed that when SeaRoad Shipping previously trans-shipped cargo from King Island ex Melbourne via Devonport the freight rates remained the same as if they were coming direct from Melbourne to King Island; that is, there was no additional charge by SeaRoad Shipping to their customers on King Island for the freight shipped by Devonport to King Island ex Melbourne. Under this service, SeaRoad Shipping trans ship rates - that is the cost passed on to customers to cover TasPort's freight charges, charges for freight shipped both via Devonport and freight shipped direct from Melbourne to King Island - only ever included two wharfage charges: export wharfage out of Melbourne charged by the Port Authority of Melbourne to SeaRoad Shipping; and import wharfage to the destination port in Tasmania, King Island, charged by TasPorts to SeaRoad Shipping, even though the freight was offloaded in Devonport, and then reloaded back on the vessel to King Island. It is important to note that because it was handled on the Devonport Port, on and off, off and on.

On the cessation of a direct service - King Island to Melbourne, Melbourne to King Island March 2022, TasPorts introduced new additional tranship wharfage charges which the state-owned shipping company, Bass Island Line, in turn is passing onto their King Island customers. There are two additional tranship wharfage charges. These two additional tranship wharfage charges are import wharfage into Devonport, ex-Melbourne; and export wharfage Devonport to King Island.

Once again, King Island was previously charged one set of TasPort wharfages by SeaRoad Shipping, and now that SeaRoad Shipping is no longer shipping to King Island and the state government-owned Bass Island Line has withdrawn its direct sailing King Island to Melbourne to King Island, TasPorts commenced charging the community of King Island for three sets of wharfage in March 2022: import wharfage into Devonport ex-Melbourne; export wharfage out of Devonport to King Island; and important wharfage into King Island from ex-Devonport.

For a standard 20-foot container of general use wharfage, this is: $91 into Devonport ex-Melbourne; $91 out of Devonport to King Island; and $113 into King Island ex-Devonport. For a 20-foot container of general cargo, this additional wharfage currently amounts to $182 plus GST for every tranship container of general cargo to and from Melbourne. That gives the basis for the question.

My questions are:

(1) Why did TasPorts make the decision not to finalise the previous arrangements whereby SeaRoad Shipping was charged the wharfage, but it was fully rebated back to Searoad, thus no additional cost to customers;

(2) when did TasPorts make the decision to end the rebated transhipping wharfage;

(3) who was consulted with regarded to the decision that poses significant additional cost to King Islanders;

(4) does TasPorts consider this as a fair freight cost to impose on King Island customers;

(5) does Mr Ferguson, the minister responsible, consider this a fair freight cost to impose on King Island customers; and

(6) will TasPorts reimburse these additional tranship wharfage charges to the shippers they have effectively overcharged since March 2022, noting this matter has been raised directly with TasPorts management last year, when the arrangement began, and no response has been received today?

ANSWER

I thank the member for her question.

(1) When SeaRoad Shipping shift freight from Melbourne to King Island, containers remain on the vessel. They were not offloaded, so wharfage was not payable.

Ms Forrest - That is not right.

Mrs HISCUTT - Vessels that unload freight attract wharfage fees. These are the answers that the minister has received.

Ms Forrest - Okay, I know you were on;y given what you have got. Anyway.

Mrs HISCUTT -

(2) Any arrangements between TasPorts and SeaRoad Shipping ended when SeaRoad Shipping withdrew its services. This occurred four years ago.

(3) Bass Island Line consults regularly with customers on shipping, including costs.

(4) TasPorts is participating in the independent inquiry into matters around Bass Island Line's pricing policies under the Economic Regulator Act 2009. The independent inquiry will allow prices and costs to be examined at arm's length from Bass Island Line, its parent company TasPorts, and the Government. TasPorts will provide all relevant information on wharfage costs as part of that review.

(5) In December 2022, the Treasurer directed the Office of the Tasmanian Economic Regulator to conduct any inquiry into Bass Island Line's pricing policies and provided terms of reference. The regulator has welcomed interested parties to contact the Office of the Tasmanian Economic Regulator to provide input into the inquiry. The regulator is to report on its findings by 31 August 2023, and it would be inappropriate for the minister to comment ahead of these findings.

(6) TasPorts fairly charges wharfage and other fees appropriate to individual arrangements and will continue to do so.