State government backflips on scrapping scheme to get freight off Wimmera roads

The Mode Shift Incentive Scheme was set to be cut if Labor won the state election.

The government reversed its decision after finding the previous government had made a four-year commitment to four companies, including Wimmera Container Line.

The scheme provides cash incentives for selected businesses to put more freight on rail.

Wimmera Container Line general manager Allister Boyce said the cut would have been disastrous for the business and the Wimmera.

‘‘We’ve got a guarantee from the government that they will honour the four-year agreement and we’re very happy about that,’’ he said.

‘‘It means security for the business and it will help expand the business.’’

Mr Boyce said the scheme increased the competitiveness of the business.

‘‘It’s absolutely critical to the terminal,’’ he said.

Mr Boyce said the company had based its business model for the next three years on the scheme.

A spokesperson for Roads Minister Luke Donnellan confirmed Labor had planned to scrap the scheme prior to November’s election.

‘‘However, the government has since become aware that the previous government had signed four-year funding agreements with four companies who receive funding under the scheme,’’ they said.

‘‘The government will honour these existing agreements, while reprioritising only $3.2 million that has not yet been allocated under the future years of the scheme.’’

Member for Lowan Emma Kealy welcomed the government’s commitment.

‘‘This is great news for our local freight industry such as the Wimmera Intermodal Freight Hub and Wimpak Export Company,’’ she said.

Ms Kealy said she had written to Mr Donnellan urging him continue the scheme.

‘‘If the funding wasn’t continued, it would have meant about 49,000 containers that would have been transported by rail would have had to be transported by trucks,’’ she said.