Business backs Liberal freight policy

There is business support for the Tasmanian Opposition's plan to solve international freight problems, but the State Government's calling it a 'splash and dash' announcement.

The Liberals have promised to spend $33 million over three years to attract a new international shipping service.

Exporters have been struggling with high costs since the last operator quit Bell Bay two years ago.

The state's main business lobby has welcomed the Liberals' announcement.

Michael Bailey from the Chamber of Commerce and Industry says a solution is desperately needed.

"There wouldn't be a business in Tasmania that wouldn't be excited about this announcement as far as I could tell,' he said.

The Infrastructure Minister, David O'Byrne, has criticised the Opposition's proposal, saying calculations show it would only cater for about 30 per cent of international exports.

Mr O'Byrne says the Liberals have failed to say where the money would come from.

Recycle fears There are fears Tasmania's recycling will soon be sent to landfill, if high freight costs aren't dealt with.

Recycling materials collected from kerbsides is shipped to China and south east Asia, but the service has been losing money since Tasmania lost its international shipping service two years ago.

Craig Fraser from Veolia, which handles the waste, says international shipping costs have risen from $26 dollars a tonne to $67.

"So that's a 41-dollar per tonne increase, so that's pretty significant and it's very difficult for us to maintain our business and look to grow our business when we've got these sort of extra costs," he said.

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