THE Office of the Economic Regulator has called for submissions from interested parties to an an independent inquiry into King Island shipping costs.
Deputy Premier and Minister for Infrastructure and Transport Michael Ferguson announced the review last month.
Independent Murchison MLC Ruth Forrest questioned Mr Ferguson about King Island shipping and consultation, freight task costs, including fuel costs and delays.
Ms Forrest welcomed the Minister’s response and commitment to her request for a review. However, she asked Mr Ferguson who would determine the inquiry’s terms of reference.
She also asked the Minister questions around timelines and methods used to enable transparency of the inquiry processes, particularly for the King Island community.
“In addition to freight costs, I also asked for an independent review that included the regularity, reliability and timeliness of the BIL service delivery; the freight task; and private operators who may be interested in taking on the shipping and freight task,” Ms Forrest said.
The Economic Regulators listed the Inquiry on their website about January 3 and called for submissions.
“The Office of the Economic Regulator undertaking the inquiry into freight prices on Bass Island Line to King Island provides very scant details,” Ms Forrest said.
This week, after a request by the Courier to Mr Ferguson for details of the inquiry’s terms of reference, scope and timelines, a response was received from the Department of Treasury and Finance Secretariat and subsequently the details requested were posted on the Economic Regulator’s website.
“Under a prescribed body inquiry, the Regulator is limited by legislation to examining matters relating to the prescribed body’s pricing policies including policies about the level or structure of prices for goods and services.
The Regulator’s inquiry is to assess whether:
1. the prices charged by Bass Island Line for the supply of freight services to customers on King Island on a regular weekly basis reflect:
(a) the efficient costs of providing those services (including charges TasPorts imposes on Bass Island Line);
(b) are consistent with recovering those costs on a full cost attribution basis in line with competitive neutrality principles;
2. where possible, the costs incurred and prices charged per unit are consistent with that observed in other comparable markets;
3. Bass Island Line’s pricing behaviour is in line with relevant industry rules and practices; Interested parties can contact the Office of the Tasmanian Economic Regulator to provide input.