The Office of the Economic Regulator (OTTER) confirmed last week that the report from their inquiry in relation to the pricing policy of TasPorts’ wholly owned subsidiary Bass Island Line (BIL) will be handed to the Treasurer and Minister for Infrastructure and Transport by today.
In November 2022, Infrastructure and Transport Minister and Treasurer Michael Ferguson initiated a prescribed body inquiry under the Economic Regulator Act in relation to the pricing policy of TasPorts’ wholly owned subsidiary Bass Island Line (BIL).
“The Economic Regulator would be looking at the economic elements and the pricing components that go into prices charged to customers,” Mr Ferguson said.
Murchison MLC Ruth Forrest expressed her concerns in January and again in May about the Office of the Economic Regulator’s submission processes, the narrow terms of reference, which do not explicitly include fuel pricing, freight delays and the difficulty many King Islanders may have in presenting a written submission and urged OTTER to visit the island for oral submissions.
The Regulator visited in May; however, OTTER did not undertake an awareness campaign or any advertising to encourage community participation or provide transparency around engagement.
OTTER was criticised for having a “narrow enterprise definition of customer and freight user”.
Ms Forrest, said after the OTTER team visited the island there had not been any advertising or information to at least let people and businesses be aware of this visit.
“The expectation is that it’s understood by the regulator and the inquiry that everyone on King Island is a customer.
“Shipping and freight tasks and costs, pricing, and regularity impact everyone every day,” she said.
“It’s apparent that a highly targeted approach is being used, which misses the point of the total island reliance on shipping and freight.
“They need a full and complete understanding. Everyone on the island has skin in the game.”
OTTER was informed that island businesses, who consider themselves regular freight users and sizeable BIL customers were unaware of the OTTER team visit or found out about the visit by an email on their arrival sent by KIRDO.
“The Regulator has identified key stakeholders to consult with, namely major customers, intermediaries involved in the King Island freight task, and those who have been in touch with the Regulator’s office,” the regulator said.
“Interested parties were welcome to contact OTTER to make a submission.”
According to OTTER the Treasurer will receive their prescribed body inquiry report by August 31.
The Treasurer has been asked by the Courier for a response to the report and if the report will be published in due course.