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.

A response was received yesterday from the Trade Minister stating the intent is to cease the IFAM program on 30 June 2022 with an operational tail until 31 July 2022.

This position is in line with the government's position to wind up other temporary COVID-19 measures leaving businesses to manage disruptions with a view to longer term sustainability in a post-pandemic economy. The response down played the potential competitive advantage that New Zealand exporters will receive with extended access to MIAC.

Importantly, the Trade Minister has kept the window open by stating that an extension to IFAM remains possible should circumstance change.

FTA/APSA welcomes any member feedback to support advocacy for an extension of financial support for the sector and will continue its close liaison with the relevant government and shadow ministries in the lead up the the federal election.

The most recent Ministerial correspondence is available HERE

Paul Zalai - Director FTA | Secretariat APSA | Director GSF

Trade Minister response to FTA/APSA call for IFAM extension