26 June 2024

Freight subsidy lifted to 20 per cent amid calls to extend ‘essentials’ definition

| Lyndon Keane
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Premier Steven Miles has announced the remote freight subsidy will increase from 5.2 per cent to 20 per cent, but would not explain why items like fuel, clothing and whitegoods were not deemed household “essentials” under the scheme. Photo: Lyndon Keane.

The State Government has boosted its remote freight subsidy to 20 per cent but failed to include critical everyday items on the list of approved “essentials” eligible for the discount.

Premier Steven Miles was in Cairns on 19 June to make the announcement the Remote Communities Freight Assistance Scheme was being lifted from the current 5.2 per cent discount to 20 per cent as Cape York and Torres Strait residents attempt to curb crippling supermarket bills.

“This is designed to address the excessive cost of groceries, particularly fresh food,” he told media at a press conference on the Cairns Esplanade.

“This is a very direct contribution to address the escalating cost of buying food in remote parts of our state.”

The government had been criticised for the original 5.2 per cent discount, with Member for Cook Cynthia Lui even breaking ranks in April to slam the subsidy, arguing “when you are paying almost 30 per cent more than people in the city for a basic food item, a 5.2 per cent discount does not help much”.

READ ALSO Lui admits freight subsidy not working for Cape and Torres grocery bills

Ms Lui stood alongside Premier Miles for the announcement and said she believed the increased discount would offer genuine cost of living relief.

“Twenty per cent is a huge increase for those communities, and it is going to make a lot of difference,” she said.

“Everywhere I’ve travelled, I’ve heard of the challenges of keeping up with … everyday essential items, and I know this is going to support families [and] it is going to support businesses.”

Thirty-two retailers across Cape York, Torres Strait and the Gulf of Carpentaria have signed up to participate in the scheme, however, Cape York Weekly understands the Woolworths in Weipa and IGA in Cooktown are yet to follow suit.

The subsidy covers what the government describes as supermarket “essentials” like milk, bread, and fresh fruit and vegetables, with some critics arguing other everyday items such as fuel, clothing, furniture and whitegoods had to be eligible if the scheme was to effect genuine cost of living respite.

READ ALSO Letter from the Editor: Freight subsidy must consider what everyday people need every day

Cape York Weekly asked Premier Miles if his government would expand its definition of what constituted essential items but he was unwilling to make a commitment.

“I’d make the point again, this is a big new subsidy that didn’t used to exist, that will make fresh food cheaper, and we will monitor its impact,” he said.

“And over time, of course, we’ll continue to do more, but right now, this is a major announcement to reduce the costs of fresh fruit and vegetables.”

The 20 per cent discount will come into effect later in the year.

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