A new freight subsidy scheme has been announced in Western Australia which will reduce freight costs for Kimberley businesses impacted by recent floods.
The new scheme, which will be backdated to 1 January 2023, will apply to the freight of essential supplies for businesses, not-for-profits and Aboriginal corporations in and out of Kimberley, including transport of agricultural products out of the region.
The subsidy will be calculated as the difference between pre-flood and post-flood freight costs and paid directly to freight operators.
There is also a subsidy available for businesses and infrequent freight receivers established on a per pallet rate.
WA Premier, Mark McGowan, said reducing freight costs for Kimberley businesses will support the viability of local businesses and industries and bolster the region’s ability to recover.
“While the road network remains disrupted it’s important there is support for impacted businesses to ensure the viability of industries across the Kimberley, which is key to the region’s recovery,” he said.
“Following consultation with various parts of industry and local governments and businesses we’ve developed this subsidies package that provides support and ensures that we can maintain logistics routes and help the region’s ability to recover from the event.”
The scheme will be managed by the WA Department of Primary Industries and Regional Development, and is jointly funded through the Commonwealth-State Disaster Recovery Funding Arrangements (DRFA).
According to the State Government, early assessments indicate demand for the program could be close to $42 million.
Federal Emergency Management Minister, Murray Watt, said it is vital that businesses are given the resources to recover from the recent floods.
“It’s important for businesses to be able to secure their supply chains and return to normal operations as soon possible,” he said.
“It is vitally important for the recovery effort and the local economy that impacted businesses get back on their feet as soon as possible.”
In other news, much-needed works on the Farm and Alexandra Street in Queensland will enter Stage 3 this weekend.
