National Employment Committee

Auslink, Australia's new transport plan should provide national corridors between all states, not just some.

The National Sea Highway concept is that Tasmania should be connected to Victoria by a ferry-based surface travel option offering, all year, comprehensive National Highway equivalence for both people, vehicles and non-bulk freight. We believe that this was the intent of the Coalition, as applied to people and vehicles, when it announced the introduction of the Bass Strait Passenger Equalisation Scheme in 1996.

Any variance to the delivery of this outcome appears contrary to the democratic mandate given by the people of Australia and Tasmania in 1996.

This concept is in keeping with the aim of an integrated national transport system under Auslink and the Commonwealth's former responsibility to provide National Highways between states.

The Commonwealth should now direct its Bass Strait funding, or equalisation schemes, to achieve this outcome. This would allow all Australians the freedom of mobility to move fairly between all states of the nation, not just some. Also it would support fair trade objectives advocated internationally.

Uncapped federal funding under the driver and vehicle scheme should be able to meet the Australian Government's responsibility to deliver comprehensive equity to the people of Tasmania and other Australians. The success of scheme should not be measured by Canberra on the delivery of holiday packages for visitors to Tasmania or the reduced cost of moving the shell of cars, without equalisation being delivered.

The proposal will apply Commonwealth BSPVES funding more efficiently as it will encourage an increase in the passenger vehicle or subsidy ratio, has a limited downside and is expected by us not to substantially impact on existing travel options.

The BSPVES uncapped funded scheme appears well funded to deliver this outcome. The estimated cost to the Australian Government seems to be within affordable limits for an interstate route and has already been justified by provision of the existing BSPVES funding and its indexed increase by by Rudd Labor.

This is a matter directly for the Australian Government, not for shipping operators.

INTERNATIONAL COVERAGE 15th May 2008 REUTERS Thu May 15, 2008 2:36am EDT

"Australia islanders say they are modern convicts"

Equitable 'Sea Highway' between Victoria and Tasmania

Peter Brohier, Australian Lawyer, and the catalyst behind the introduction of the Bass Strait Passenger Vehicle Equalisation Scheme (BSPVES), said today that:

'The scheme is not delivering comprehensive equitable surface travel for people between Victoria and Tasmania.'

'Despite Labor's recent introduction of indexation of the BSPVES by CPI , ‘indexation’ may have very little chance of bringing the cost of travel by sea to any way near the same cost of travel over sea to that of bitumen, for many Australians. This was the original intention of the scheme.'

He went on to say that to achieve highway equivalence and effective use of the BSPVES, 'the scheme needed to be targeted to cover people inside cars and not just the shell of cars'. It should also target foot passengers.

The 70 cents a km, or highway equivalence, that comprised the basis of an increase in scheme funding by Rudd Labor's in 2008 should cover a car and all the passengers inside the car. Otherwise, the equity basis of the scheme would make little sense."

Peter Brohier

Regarding the possibility of establishing an AFL Tasmanian team, see submissions numbered 1 and 1A, by using the following link:

Canberra on Thursday, 15 May 2008 between 12 noon and 12.45 pm in Committee Room 2S1, Parliament House, Canberra.

Also submission number 47 and 4 supplementary submissions, including documentary material contained in the last or fourth supplementary submission available from the following link.

Other material relevant to both Victoria and Tasmania is available by inserting the name "brohier" in the search facility on both the Productivity Commission web site http://www.pc.gov.au and Parliament of Australia web site www.aph.gov.au

MEDIA RELEASE 12th September 2007

Federal Labor's 10^th September 2007 Bass Strait Commitments

Peter Brohier, described as the man most responsible for the introduction of the BSPVES by Paul Lennon, said today,

'The Labor announcement of an increase in the BSPVES rebate of $30 each way is offered in the context that the BSPVES should aim to deliver equity with road travel. Labor has accepted that the Bass Strait crossing should be based on the cost of driving on the National Highway network. The Keating Government did not acknowledge this. The Rudd Ferguson team, to its credit did.

This is a significant move by Labor and will maintain the bi-partisan policy basis for this scheme in years to come.

Mr Ferguson, Labor's Shadow Transport minister said:

'It is time for it to be increased to move towards the current cost of driving similar distances on the national highway network,' He went on to say

'Bass Strait is Tasmania's highway to the mainland, linking it by sea instead of bitumen'. 'The cost of travel across Bass Strait is clearly a major impediment to travel between the mainland and Tasmania.' 'Mr. Ferguson said that under a Rudd Labor government the rebate will increase from $150 to $180 per passenger car and for the first time will also be indexed annually to the CPI.'

Paul Keating, in his 1996 election promises, offered to dramatically reduce both the passenger and vehicle fares to very close to highway equivalence. So did John Howard's coalition. In 1996 it introduced, under ministerial directive, a formula equalising the cost for the driver and car and by expecting competition to drive passenger fares down. Also John Howard seems to have taken the initiative in 2001 by trying to offer $50 passenger fares in 2001, on top of the BSPVES( page 300 Cheek, Confessions of a Ferret Salesman).

The expected sea-based competition did not eventuate and, possibly cannot easily eventuate now, as there is substantial excess shipping capacity already in Bass Strait.

Ms Campbell candidate for Bass said: 'The rising costs have been a deterrent for people wishing to take their vehicles either to or from Tasmania and this will help restore the balance.' How can this occur?

Under the recent Labor proposal there seems no mechanism that will drive down passenger fares and since 2001 no formula that will offer all year highway equivalence. Low airfares are not always available and the total cost of parking, the discount air ticket, and car rental has been described in advertisements as 'too plane expensive'. The total of these costs is unlikely to drive sea passenger fares down.

It is the total fare for passengers and a vehicle that needs to come down dramatically to maintain equity and National Highway equivalence. Cars don't drive themselves.

Tourism Industry Council Tasmania's Mr Hanna said 'the main purposes of the BSPVES was to ensure Australians travelling the 427 kilometres between Devonport and Melbourne received an equivalent level of support to that provided through funding of the National Highway network to people travelling the same distance between mainland States.'

'In 1996 when the current rebate for a family sedan was set at $150, the estimated running cost for an average family saloon was 39.87 cents per kilometre. The current cost of running a family saloon has increased to 70 cents per kilometre. Based on this, the cost of travelling 427 kilometres on a national highway would be $299.'

In peak season, based on a regular sit-up recliner fare, to cross the Strait return, for 4 passengers and a car, is $1964, including Labor's proposed BSPVES payment of $180 each way.

For equity and highway equivalence, an all year $299 carfare should cover the car and all its passengers, each way. This is the same option available on any highway. A foot passenger fare of about $50 should also be introduced to ensue equity for those not wishing to take a car and saving the Commonwealth $180. This would equate to a bus fare, an option that would be available on mainland highways.

The Tourism Industry Council has also got it right in describing the equity basis of the scheme and welcoming the Labor initiative. They also said

'The BSPVES is acknowledged as one of the primary reasons for the success of the strategy to improve sea access to Tasmania and the significant growth experienced in our industry since the introduction of Spirits I & II in late-2002.'

The BSPVES is an important scheme - but there is along way to go to deliver highway equivalence. If it is the Rudd - Labor aims at delivering a fairer Australia then fairness would dictate full equitable access crossing Bass Strait. Passenger fares also need to be addressed and pegged to highway travel costs,

'This would enable air to compete with fair interstate National Highway access across every border of this nation and offer equal links between all states.'

Peter Brohier can be contacted on 0415 941 314

If Labor were to offer equity across Bass Strait, at full highway equivalence, the fares could be about $50 (for a bus fare equivalent) and $299 for a driver and up to 5 passengers, including a car. These would be all year, each-way fares, based on sit-up accommodation. This option would be very affordable. Full equalisation including was costed in 2001, by officers of three governments, at about $28 million a year. The BSPVES, as applied by Labor, could cost the Commonwealth about $50 million a year.

'Auslink is not about air or sea transport as such, but is concerned with inter-modal facilities and links to ports and airports'

BASS STRAIT PASSENGER VEHICLE EQUALISATION NEEDS URGENT ADJUSTMENT

INTERNATIONAL COVERAGE 15th May 2008 REUTERS Thu May 15, 2008 2:36am EDT

"Australia islanders say they are modern convicts"

Bob Cheek, MHA
Leader of the Opposition

BASS STRAIT PASSENGER VEHICLE EQUALISATION NEEDS URGENT ADJUSTMENT

INTERNATIONAL COVERAGE 15th May 2008 REUTERS Thu May 15, 2008 2:36am EDT

"Australia islanders say they are modern convicts"

Bob Cheek, MHA Leader of the Opposition

Bob Cheek, MHA
Leader of the Opposition