Federal govt lends hand to Tas exporters

Federal money may be limited but the government says a $200 million boost to Tasmanian exports through a freight scheme is worth it.

Prime Minister Tony Abbott on Friday announced the funds would be spent to expand the Tasmanian Freight Equalisation Scheme to alleviate freight costs.

From January 2016 the four-year scheme will apply to all goods heading out of Tasmania by sea, including to international markets.

The scheme has previously only covered Tasmanian produce which was shipped to the Port of Melbourne and then distributed across Australia.

"I know these are tough fiscal times and federal dollars are limited but we are prepared to spend (where it will help the economy)," Mr Abbott said in Devonport on Friday.

Tasmanian producers welcomed the announcement, but were keen to ensure the program continued beyond the four years.

"It's extremely good news for exporters in Tasmania who can now compete on an even playing field with their counterparts in mainland Australia," Tasmanian Farmers and Graziers Association president Wayne Johnston said.

It's been estimated the scheme will cut the cost of handling a container to Melbourne by about a third.