East Kimberley business leaders call for a freight subsidy for towns cut off by floods

Small businesses in the East Kimberley may be forced to shut up shop or pass on astronomical costs as food and other freight is forced on a 2000km detour. Kununurra operators have seen freight costs double since Great Northern Highway was closed on New Year’s Day due to catastrophic flooding, forcing heavy haulage vehicles to take a new route from Perth via South Australia and the Northern Territory. The massive detour means transport companies are charging at least 80 per cent more on a pallet of goods from Perth to cover the extra fuel, driver wages and wear and tear to their vehicles. Ashley King-Elliott, 31, who has a car and boat upholstery business, East Kimberley Trimming, said if it took years to repair Great Northern Highway, as predicted, he would have to close his business. “If it was two or three months, I can make it but we don’t know when this is going to end,” he said. Great Northern Highway has been cut, with the Fitzroy River Bridge partially destroyed and 10km of the highway, south of Derby, damaged. Mr King-Elliott said it used to cost him $800 to make a bimini boat cover but the extra freight costs meant he would now have to charge $1200. “Everything is already expensive as it is and if I’m having to fork out for freight, I have to forward that on to the customers,” he said. Subway Kununurra owner Rachell Fewster said she had seen her freight costs double. Her first delivery since Central Kimberley flood was on Sunday — more than two weeks after the highway was cut. “Most businesses will have no choice but to pass the cost on to customers, which is not something we like to do but it is unavoidable unfortunately. “The town is very thankful to the truckies, though, who are doing the long haul to make sure we all have food and necessary items.” Local business leaders have called on Government agencies to grant flood freight subsidies to local enterprises before they are pushed to the wall because of the soaring transport costs, but none could agree who should foot the bill. East Kimberley Chamber of Commerce and Industry secretary Kerry Robertson said they were working hard to bring relief to local businesses. “We are working with multiple government agencies to get something sorted and will pass the information on to our members as soon as it comes to hand,” she said. Western Roads Federation CEO Cam Dumesny said the Federal Government should provide the freight subsidy because it was a national highway that had been impacted. “We need a Federal freight subsidy because it impacts both Western Australia and the Northern Territory,” he said. A spokesperson for Federal Emergency Minister Murray Watt told The Kimberley Echo any questions about freight subsidies should be directed to the State Government as it would respond to request for assistance from them. A spokesman for the State Government said they were looking at, “all road, rail and sea freight solutions, that could support businesses through the East Kimberley,” but did not say whether a freight subsidy would be introduced. “The State Government has been engaging with key stakeholders and representatives from the East Kimberley to understand what impact the flood crisis is having on business and the cost of freight. “The Government is still assessing the potential ongoing impacts in the region and reviewing all road, rail and sea freight solutions that could support businesses throughout the East Kimberley. “Assessments of the Fitzroy River Bridge are ongoing but expected to be completed soon, which will provide guidance on how long impacts are likely to last. “The State Government will be engaging the Federal Government on a wide range issues to support the Kimberley’s recovery from the flood emergency.”