2 December 2024

Don’t forget us in freight subsidy discussion: Cape business operators

| Lyndon Keane
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Business operators on Cape York are calling on new Minister for Transport and Main Roads Brent Mickelberg to include them in the Remote Communities Freight Assistance Scheme as the State Government reviews the efficacy of the program. Photo: Cape York Weekly.

Improving the State Government’s remote freight subsidy scheme for Cape York and Torres Strait residents will be for naught if there are no local businesses left standing to provide the goods and services.

That is the message frustrated Cape York business operators are hoping is heard loud and clear in Brisbane after Premier David Crisafulli last month committed to investigating the existing Remote Communities Freight Assistance Scheme and whether it is delivering any discernible cost of living relief.

Freight is one of the most significant costs for all businesses in the northernmost part of Queensland and a growing number say the sustainability of their operations hinge on the government acknowledging the crippling impact freight bills are having.

Weipa Camping Ground owner Brooke Quartermaine – who earlier this year paid almost $1,000 to sea freight 48 rolls of industrial toilet paper to western Cape York – said she believed the answer was either freight relief for remote business operators or improving the Peninsula Developmental Road to provide an all-weather road transport option.

“Freight costs are certainly a major factor affecting our business, especially in the wet season, when our only transport option is via sea,” she said.

READ ALSO $952 toilet paper freight bill highlights ongoing PDR failure

“A freight subsidy would support businesses until such time that an all-weather road was finally built, and there were road transport companies competing with sea transport companies.”

“If we continue to go down the same road we’ve been on for the last several years, small businesses will step away from remote communities altogether.”

Another Cape York business operator, who asked not to be named, said there needed to be a “freight subsidy across the board” to ensure all businesses were competitive, not just the supermarkets currently eligible for the 20 per cent subsidy on essential items.

“We are not asking for anything more that the subsidy that is in place for supermarkets,” they said.

“Current freights costs for a small business are approximately 25 per cent on top of the cost of goods.

“Without a freight subsidy … some small business will become unviable.”

READ ALSO Premier commits to review of freight subsidy impact on Cape and Torres residents

Cooktown Chamber of Commerce and Tourism president Russell Bowman echoed the sentiment and called on Minister for Transport and Main Roads Brent Mickelberg to take action on the “ridiculous” cost of doing business in the region.

“It’s one of the things that makes any of our reasonable stores seem uncompetitive at times – people expect to pay the same instore as online these days,” he said.

“[Freight from] Cairns to Cooktown is bad enough, but Cairns to Weipa is just ridiculous.”

Minister Mickelberg said he was reviewing the current freight subsidy scheme to see how it could be improved for residents and business operators alike.

“I am asking questions around the freight subsidy scheme to explore ways it can be enhanced to maximise its value and ensure it is delivering the right level of service to the communities most in need,” he said.

“One of our top priorities is driving down skyrocketing cost of living for Queenslanders, and I know living in more remote and regional parts of our state comes with its own set of challenges.

“We are always assessing ways to improve services to give small businesses every chance to remain viable, as they are the backbone of every community.”

Cooktown Chamber of Commerce and Tourism president Russell Bowman says the government needs to find a way to support Cape York businesses with “ridiculous” freight prices to ensure the sustainability of local operations. Photo: Cape York Weekly.

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