Tassie tourers pocket millions

Passengers taking vehicles across Bass Strait were subsidised to the tune of $32.8 million by the Federal Government in 2012/13, according to a new report.

Released by the Department of Infrastructure and Regional Development, the 40-page report is the latest review of the Bass Strait Vehicle Equalisation Scheme, which was introduced in 1996 to “to reduce the cost of sea travel across Bass Strait for passengers accompanied by an eligible vehicle”.

Under the scheme, passengers travelling with a vehicle across Bass Strait can receive a rebate applied against the vehicle fare charged by the operator.

One-way rebates are currently $204 for a car, $103 for a motorbike, $29 for a bicycle and up to $408 for an eligible motorhome or tow vehicle/caravan.

According to the report, “the Scheme is intended to increase demand for travel across Bass Strait, with direct benefits to the tourist industry and potential growth in jobs, investment and population for Tasmania”.

However, the Scheme cost taxpayers $1.5 million less in 2012/13 than the previous year, as a result of fewer people crossing Bass Strait by sea.

There was an eight per cent reduction in passenger numbers to 164,750; down to “levels not seen since 2000-01” according to the report. In comparison, 1,798,662 people travelled by air across Bass Strait, a 13 per cent increase.

However, the report estimated ferry passengers would be significantly fewer without the rebate incentive.

“An estimated 14,400 new leisure visitors travelled by sea due to the Scheme in 2012-13, spending an estimated $42 million in Tasmania,” it said.

Despite rebates increasing by almost six percent since 2011, the Scheme has come under fire for not keeping pace with rising transport costs. The Tourism Industry Council Tasmania recently claimed the relative value of the rebates has dropped by 40 per cent since 1996.

According to the report, the average one-way fare (including the rebate) during peak periods has increased to $738 – up from $651 the previous year.

The Tasmanian Government-owned TT-Line runs the two Spirit of Tasmania ferries and reported an after-tax profit of $12.7 million in 2012-13, up from $1.1 million in 2011-12.

TT-Line carried 330,698 one-way passengers and 151,594 eligible vehicles in 2012-13, down from 358,432 one-way passengers and 164,236 eligible vehicles in 2011–12.

There have also been calls for a third ferry to be added on the Melbourne-Devonport route to cater for increased demand from RV travellers during busy periods.

Each ship has a maximum capacity of 1040 passengers and 660 vehicles on each crossing, as well as capacity to transport freight.

To read the full report, click here. And for more about the Spirit of Tasmania experience, click here.