s lie directly with a, high traffic, Bass Strait surface link. Victoria, and in particular Melbourne, stand to gain by expenditure of travellers from across Australia traveling through Victoria to Tasmania and back again. Melbourne is the closest gateway to Tasmania. Low airfares result in many travellers flying over Victoria to Tasmania and not spending one cent in Victoria. Vehicle equalisation funding also applies on the Sydney–Devonport sea route. This encourages, in many cases, the bypassing of Victoria and increases the Commonwealth’s financial burden, funding both the Hume Highway and, in part, a parallel sea route. 

The movement of people is now almost as significant as the interstate movement of goods. People travel by road for major events, including AFL football matches. Some matches are now held in Tasmania and with an Auslink connection would attract significant numbers of interstate travellers. Victorian businesses would have access to additional travellers from Tasmania. Victorians continue to travel via New South Wales to Queensland tourist destinations. With a high volume Auslink connection to Tasmania, this trend may be reversed offering the opportunity of a low cost “highway” trip through both Victoria and Tasmania.

In the absence of sea-based competition, it is time that the Commonwealth introduced some conditions to the uncapped $32 million a year passenger vehicle scheme to achieve comprehensive equalisation. The Tasmanian Government and its ferry operator apparently have no legal obligation to implement equalisation nor to adjust the impact of the equalisation schemes. The Commonwealth has primary responsibility for interstate linkages.

Tasmania has impressive natural beauty and a population of about half a million. It is ranked as a chosen destination by many Australians but still has relatively low actual visitor numbers. Price and capacity had been found to be the major determinants of crossing Bass Strait by sea. The number of travellers has significantly increased as fares have been lowered. This trend must be encouraged. The movement of labour and family reunions between the Mainland and Tasmania should increase as should visitor numbers. Also Victorian businesses operating in Tasmania will be able to spread overheads over a larger population base further lowering consumer costs.

With a resultant lower cost of living, greater business activity, relocations and lower average access costs to the mainland though comprehensive equalisation of travel costs, the volume of freight, passengers and international exports to and from Tasmania via the Port of Melbourne are likely to rise. By removing the remoteness of Tasmania, Victorian service industries may extend their operations to Tasmania. These factors would reduce the shipping overcapacity in Bass Strait and add to Victoria’s vision of being the nation's transport hub. The spoke to Tasmania will be significantly strengthened. 

The only surface link between Victoria and Tasmania is by ferry. The priority of delivering this one primary interstate link can be distinguished from many deserving transport projects across the nation. Whilst the Commonwealth has funded their scheme promises, there are also very clear fair trade and state rights principles that ought to be met. Every Australian should have the right to access the Auslink network and all states, equally. Also Coalition promises guaranteeing Tasmania transport equality and accepting that the Bass Strait link would be part of the former National Highway should now apply under Auslink.  

Based on government estimates, enhancement of the passenger vehicle scheme may be achieved at relatively low cost as highway equivalence will encourage an increase in the passenger vehicle ratio. Based on possible traffic volumes, improvement of both schemes may cost the Commonwealth about an additional $100 million a year, over the $122 million drawn down under the combined equalisation schemes. The cost to Commonwealth for this link is likely to be comparable with other East Coast inter-capital links and far cheaper than establishing a network of inter-island bridges should Canberra not be able to deliver a ferry-based equivalent. The cheapest way of moving people is by sea, not by National Highway’s costing perhaps an average of $4million a kilometre. Other connecting infrastructure in Melbourne would cost the Commonwealth extra, as has Auslink’s recent funding of a bridge across the Port River in Adelaide.

With comprehensive equalisation, the average sea fare to Tasmania for foot passengers and passengers travelling with a vehicle and or ancillary vehicles, particularly on day-time sailings, should be able to be reduced very significantly and be maintained at fare levels equal to the average cost of travelling on other inter-capital Auslink connections. For travellers choosing basic highway equivalent fares, limited availability, promotional and seasonal fares should cease. 

John Howard said in 1996 that “Bass Strait was the single greatest impediment to the growth of population, investment and jobs” in Tasmania. The success of his passenger vehicle scheme proved this view correct. It is time that the Prime Minister’s initiative was enhanced. With the scheme described as “the single greatest regional initiative ever”, the economic benefits of an Auslink connection may well exceed the extraordinary success of the passenger vehicle scheme.   

With multiple low- cost transport links a day, the amenity of Melbourne and Victoria as a place to live would significantly improve. Access to Tasmania’s natural beauty and outdoor sporting activities including its snowfields, fishing, bushwalking and sightseeing, low-cost land and holiday housing could be about $50 away, one-way for a foot passenger and about $200 with a vehicle, including its passengers, based on all year, consistent “highway” fares. Tasmania is attractive to retired baby-boomers. The link would bring the certainty of all year Auslink access to family and friends on the mainland and, to many, offer a compelling reason to move south. With high youth unemployment, loss of young people, a significant welfare dependency and high levels of interstate property investment in Tasmania, it seems wise for Tasmania to embrace growth based on falling barriers to entry.  Also the interests of a strong tourist industry are likely to encourage the Tasmanian Government to maintain the protection of Tasmania’s natural strengths while hopefully, at the same time allowing its towns and cities to develop. Tasmania and Victorian businesses should take advantage of Tasmania’s growth potential and its proximity to Australia’s largest population base. A natural growth pattern would be for Melbourne’s population to start expanding to Tasmania. With the passenger vehicle equalisation scheme and the resultant introduction of new passenger ferries, Tasmania now has an increasing population. Many of its business indicators are positive. With a sea-change mentality prevailing and a coastline about that of New South Wales, Tasmania can grow even further. 

Existing ferries are able to transport much larger volumes of both people and freight across Bass Strait. At least two ferries can now make a return trip within a day, all year. With changes in technology and shorter routes, crossings times can be further reduced.

The case for Tasmania’s linkage to the then, National Highway, was made in 1996. A number of National resolutions by the Liberals, Nationals and Local Government, supported the link. Prime Minister Keating proposed low sea fare access. The people of Tasmania voted for the link by endorsing the Coalition’s promises to recognise Bass Strait as part of the National Highway. The Victorian Government and the then Victorian Labor caucus also supported the link. The Premier of Tasmania is on record as supportive of lower passenger fares by sea and Tasmanian Labor promised to negotiate passenger equalisation with the Commonwealth. It was clearly understood that every state was entitled to at least one equitable surface link.

The immediate issue for Victoria is to recognise that it is, on behalf of all Victorians, one of two major stakeholders, with Tasmania, in the Bass Strait link. This third inter-capital link may include a substantially federally funded bridge that can rival the Sydney Harbour Bridge over an enhanced Docklands and a transport corridor reducing congestion between the Hume Highway and in the vicinity of the Port of Melbourne for both passengers, vehicles and freight can be covered  in a way that Sydney’s geographical location can never justify. It will offer the Nation effective and timely access to a combined recreational and growth market possibly unprecedented in Australia’s recent history.

No Victorian should forget that Melbourne was originally settled from Tasmania and it is clearly time for the leaders of this Nation to again, strongly revisit Victoria’s southern link. 

Peter Brohier was chairman of the former National Sea Highway Committee and the Committee for Bass Strait Transport Equality, the catalysts and lobbyists behind the Coalition’s BSPVES and the Keating proposal for a low-cost fast ferry connecting Victoria and Tasmania. The issues raised in the article are currently before the Hon Jim Lloyd, Minister responsible for the TFES and the BSPVES. The TFES is currently being investigated by the Productivity Commission.