Legislative Council, Wednesday 23 November 2022

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

With regard to the shipping service to and from King Island, noting the review conducted in 2018-19 that saw the continuation of the Bass Island Line (BIL) and subsequent removal of the direct Victorian service:

1. Will the Minister commission a fully independent review of the shipping service, that is at arm’s length from TasPorts, BIL and government to review;

a. the regularity, reliability and timeliness of the BIL service delivery;

b. freight costs;

c. the freight task; and

d. private operators who may be interested in taking on the shipping and freight task?

ANSWER:

Bass Island Line, a wholly-owned subsidiary of TasPorts, continues to provide a reliable service to King Island and customers have responded positively following the changes made to the service in March 2022.

However, the Government acknowledges ongoing concern with regards to the cost of movement of freight to and from King Island by the State-owned company, which operates in a competitive commercial market.

The Treasurer intends to commission an independent inquiry into matters around Bass Island Line’s pricing policies under the Economic Regulator Act 2009.

Recognising the importance of establishing confidence in the BIL service, it is considered that an inquiry into matters affecting BIL’s pricing policies would assist in addressing concerns with regard to BIL’s role in the market.

After more than five years of Bass Island Line operations, it is timely that a Prescribed Bodies Inquiry is held to address this matter.

An 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. Its findings will inform future planning for King Island shipping services.

Terms of reference will be prepared for the Inquiry with a completion date to be determined as part of that work.