Legislative Council, Thursday 8 September 2022

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

I asked the Leader on 24 August about the high cost of living on King Island, mainly due to transport costs of food like fruit and vegetables. The Leader stated that Bass Island Line (BIL) is now offering the opportunity for local food outlets to source products from mainland Tasmania via sea freight, which is considerably cheaper than transport by air. Refrigerated containers have now been secured. BIL is now exploring the possibility of a trial subject to market demand. That was the response I was provided.

My follow-up questions to the Leader are:

(1) Have Tasports or Bass Island Line informed the retailers on King Island of these matters? If so, how were they notified and when?

(2) Have Tasports or Bass Island Line asked the retailers what quantity of perishables they bring to the island each week? If so, when and how was this information sought from retailers?

(3) Does Tasports or Bass Island Line understand these perishables are now flown in at least twice a week? Therefore, what arrangements are in place to ensure the quality of these products when they sit in a container for a week, or even longer when bad weather delays shipping to the island?

(4) Have Tas Ports or Bass Island Line had any discussions with the airlines that service King Island regarding the freight task?

(5) Have Tas Ports or Bass Island Line undertaken any assessment of what would be the impact for the airlines that provide service to King Island? Particularly as in some cases, they also heavily rely on the freight component. If so, what was the outcome of this assessment?

ANSWER

I thank you the member for her question. Before I get into the answers, Mr President, members may have noticed I have a new helper here behind me. I have been short-staffed in my office this week, so we have had Meg Windram to help with questions.

(1) Tas Ports has identified the opportunity to introduce a perishables shipping service which will operate in addition to the existing air freight service. This fills a gap at present with the only means to important fresh and perishable foods being air freight, which is the most expensive mode, and leads to increased costs for customers. As a result, BIL have recently commenced implementation of a weekly refrigerated shipping service to freight less than container loads ahead of conducting a three-month trial, subject to market demand. The service has been available to transport perishables since 16 July. The refrigerated service is available to transport both frozen and chilled freight and could also include other non-perishables to and from the island.

BIL has been communicating the offer of the more cost-effective refrigerated freight service with retailers on island.

(2) BIL has been advised the perishable weekly freight task to King Island is approximately 12-14 tonnes via Tasport shipping agent on King Island, noting the shipping agent also represents the interests of the island's two supermarkets.

(3) The BIL service is offered as a potentially less expensive solution as an alternative to the current air freight solution, not a replacement for it. BIL's mainland Tasmanian shipping agent, Freight Connections have assisted with the freight forwarding solution to Devonport 5 West, for loading on to the John Duigan for its weekly services.

The freight forwarding solution for this leg is described as follows: The depot is IGLOO Cold Storage cool stores in east Devonport. Empty containers are there prior to the two-day receiver window, so they are onsite and good to load when needed. Chilled and frozen storage will be onsite, so it addresses any cold chain queries as they will be always be under temperature control. Both the frozen and chilled containers will be stored at Grassy Port and Tasports, on BIL's behalf, distribute to customers on the day of arrival.

(4) No, the focus of BIL's discussions have been with potential customers.

(5) There is no requirement to undertake an assessment with other service providers. BIL's focus has been on establishing a new sea freight perishable service to King Island for the benefit of King Island residents, in order to allow reductions for the price of perishable goods.