Further to our communication exchanges with the The Hon Dan Tehan - Minister for Trade, Tourism and Investment on 7 January and 23 February 2022, Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) again wrote to the Minister, Federal Treasurer, the Deputy Prime Minister, the Minister for Agriculture and Productivity Commissioners on 19 March 2022 seeking a budget allocation to extend the International Freight Assistance Mechanism (IFAM) beyond its scheduled mid-year conclusion.

The FTA/APSA correspondence from 19 March 2022 focussed on the Minister's previous response to our recommendation for contingency planning and budget allocation 'we will continue to closely monitor the situation, including whether there is any need to further extend IFAM beyond its current end date'.

In parallel to the rapid global spread of the Omicron variant of COVID-19, war in Eastern Europe and soaring fuel prices that has again generated significant uncertainty for the airfreight market, FTA/APSA noted the announcement from the New Zealand Federal Government to continue funding of the Maintaining International Air Connectivity (MIAC) scheme until March 2023.

Whilst noting there are distinct differences between the respective air cargo markets, there is a perceived threat that Australian exporters may be at a commercial disadvantage from July 2022 in competing with New Zealand producers who will have ongoing financial support in reaching key markets.

FTA / APSA recommended a thorough analysis to assess the impact of the MIAC scheme and other emerging threats to the Australian air cargo sector with a budget allocation made to extend IFAM for a parallel period to that in New Zealand, to at least 31 March 2023.

We continue to keep members up to date with developments as we continue our positive engagement with the Federal Government in addressing strategies to maintain global air connections and to retain Australia's reputation as a reliable global trading partner.

Paul Zalai - Director FTA | Secretariat APSA | Director GSF

FTA / APSA ADVOCACY TO EXTEND AIR CARGO SUPPORT