Australian Government, 2007–08 Budget

Transport: Ongoing initiatives

Tasmanian Passenger Vehicle and Freight Subsidy Schemes

The Australian Government has budgeted $130.1 million in 2007-08 for rebates for shipping passenger vehicles and freight across the Bass Strait. The schemes acknowledge that people taking their cars to and from Tasmania must ship their vehicles by sea, and that Tasmanian shippers do not have the option of transporting goods interstate by road or rail. The Australian Government's subsidy schemes will continue to enhance tourism and trade opportunities between Tasmania and the mainland, and make a major difference to the ability of Tasmanian firms and operators to compete on an equal footing with their mainland counterparts.

Remote Air Services Subsidy Scheme

The Australian Government is providing $18.1 million from 2007-08 to 2010-11 under the Remote Air Services Subsidy (RASS) Scheme to subsidise the cost of air operators contracted to deliver a weekly passenger and freight service (including essential medical, food, educational and other services) to around 235 remote communities in the Northern Territory, Western Australia, Queensland, South Australia and Cape Barren Island in the Bass Strait. RASS services are provided through commercial air operators chosen through public tender.

Enroute Charges Rebate Scheme

The Australian Government will spend $24 million over the next four years, commencing with $6 million in 2007-08, to continue subsidising the enroute air traffic control charges paid by more than 35 regional airlines and other operators.

The subsidy has a vital role in supporting Australia's small airlines, which carry over 2.3 million passengers a year and connect Australia's regions to the major cities.

The subsidy also helps support aeromedical operators like the Royal Flying Doctor Service and the state Air Wings. It saves the Royal Flying Doctor Service over $1 million per year, which is money they can spend on looking after people in remote areas.

Indian Ocean Territories

The Australian Government is improving infrastructure in the Indian Ocean Territories by constructing a deep water freight and passenger handling facility on Cocos (Keeling) Islands and removing asbestos from Australian Government-owned buildings and infrastructure in these Territories.