Media release – Peter Gutwein, Premier & Michael Ferguson, Minister for Infrastructure and Transport, 21 July 2020
Exploring local opportunities for new Spirit vessels
As we rebuild a stronger Tasmania, we are backing Tasmanian and Australian businesses and jobs by exploring local procurement and manufacturing options for TT-Line’s replacement vessels.
Premier Peter Gutwein said with global and local economies impacted by COVID-19 it is vital the Tasmanian Government continues to make decisions that present the greatest opportunity for our local and Australian manufacturers.
“Tasmania is renowned for its innovation and this decision is a potential game changer for our advanced manufacturing sector,” Mr Gutwein said.
“We have a choice right now to invest around $850 million off shore in Europe, or to explore all our options in this new post-COVID-19 environment to maximise benefits for Australian and Tasmanian businesses and the people they employ.”
Unashamedly, we are going to explore fully the option for this significant investment and the jobs it will underpin to be spent in Australia rather than Europe with a particular focus on Tasmanian manufacturers.
It’s expected the project could create more than 1500 direct and indirect jobs.
The Premier said a Taskforce is being established to identify local procurement, purchasing and manufacturing options.
The Taskforce will include representation from Treasury, State Growth, TT-Line and a representative of the Federal Government.
Minister for Infrastructure Michael Ferguson said this will provide Tasmanian and Australian companies a greater opportunity in the construction of new vessels.
“We know the current Spirit of Tasmania vessels are already emissions compliant and can continue to operate safely and efficiently and meet demand well into the future,” he said.
“We will work closely with TT-Line to consider how Tasmania can best maximise the economic and social outcomes both during the build phase and after delivery of the new vessels.”
“We want to ensure that we fully explore all local and national options or possibilities before we to return to the market.”
TT-Line has enjoyed phenomenal success under this Government, and we will continue to deliver our plan for increased passenger numbers and lower fares.
We remain committed to building two new ships within our 2028 timeframe.
Media release – Shane Broad MP, Shadow Minister for Infrastructure, 21 July 2020
Spirits delayed until at least 2028
The Liberals have delayed the delivery of new Spirit of Tasmania vessels until at least 2028, in a decision taken against the advice of the TT-Line Board.
Shadow Infrastructure Minister Shane Broad said the government is using COVID-19 as cover for its own incompetence.
“It is extremely disappointing that the new Spirits are delayed until at least 2028,” Dr Broad said.
“The original timeline for the new Spirits vessels has been blown out of the water, proving yet again that the government has no credibility when it comes to delivering major infrastructure projects.
“Tasmanian tourism operators now have nothing to look forward to until at least 2028 and any hope for local manufacturing is at least six years and two elections away.
“This is a problem of the government’s own making – if they hadn’t already delayed the project four times, the new Spirits would be under construction right now.
“With this government’s record, how can Tasmanians have any confidence that the ships will be built anywhere, including in Australia?”
Dr Broad said there are no lengths the government won’t go to, to avoid the reality of their infrastructure incompetence.
“Last week the Liberals accused Labor of being reckless when raising legitimate concerns about the Spirits.
“The government also denied there was an issue with the shipbuilding negotiations, only for the Premier to throw the whole project overboard this week.
“The Liberals have ignored the advice of the TT-Line Board and are instead covering up their infrastructure incompetence with spin, and the establishment of yet another taskforce.
“It is deplorable that the Liberals are using COVID-19 as cover for their inability to deliver the new Spirit of Tasmania vessels – Tasmanians deserve better.
Media Release – Tasmanian Small Business Council, 21 July 2020
Aussie Built Ferries will Grow the Nation
The decision today by the Minister for Infrastructure Michael Ferguson to seek local opportunities to replace the two TT Line ferries is a bonus for local manufacturing, said Robert Mallett CEO of the Tasmanian Small Business Council.
‘Whilst this will put back introduction of shiny new ferries to our major sea route, the opportunities for the Australian shipbuilding, furniture and small business sector are enormous.
‘Large and small businesses should be supported and encouraged to work together to jointly contract to construct state of the art purpose built ferries for our own and foreign markets.
‘Whilst some may suggest this is a broken electoral promise, if ever there was a time to delay the arrival of such significant overseas provided infrastructure and invest in Australians, now is it.
‘The future for the Australian economy is to innovate with import replacement initiatives. This can be as significant as vehicle ferries or facemasks.
‘A major challenge for manufacturers in these new initiatives is to learn from the automotive industry by minimising union interference and fully engage the workforce in a team Australia culture.
David O’Byrne MP, Shadow Treasurer, 22 July 2020
Serious questions over Spirits decision
The State Government has serious questions to answer over the decision to yet again delay the construction and delivery of the new Spirit of Tasmania vessels.
Shadow Treasurer David O’Byrne said the decision, taken against the advice of the TT-Line Board, is effectively a vote of no confidence in the TT-Line Board and the Infrastructure Minister.
“The government’s decision to delay the Spirits is not only concerning, it also raises questions about what the Bass Strait ferry service will look like over the next few years,” Mr O’Byrne said.
“The former Infrastructure Minister Rene Hidding said the two Spirit of Tasmania vessels would need to be replaced by 2022/23.
“With no new vessels until 2028, we need to know if the existing spirits are up to the task of carrying a heavy load of tourists and freight until the new ones are built.
“The government originally said it would be transferring $80 million from TT-Line’s books to government books to set up a fund to build the new vessels.
“Now, with the replacement of the Spirits back to square one, Peter Gutwein must explain what will happen to the Ship Replacement Fund money, in addition to the money they have forecast to rip out of the TT-Line GBE’s in the state budget.
“Will the government have to transfer the funds back to TT-Line so they can refurbish the existing vessels and keep them fit for purpose until the new ones are built?
“Given that the TT-Line Board had recommended going ahead with the European contract, the Premier’s decision is a clear vote of no confidence in the Board and the Infrastructure Minister.
“The Liberals have ignored the advice of the TT-Line Board and are instead covering up their infrastructure incompetence with spin and the establishment of yet another taskforce.
“The Premier needs to explain his decision-making process over the last few years as a key member of the Ship Replacement Sub-committee of Cabinet.
“The Premier must also provide some certainty around the delivery of these vessels. Tasmania cannot afford to have yet another major infrastructure project go under because of their own mistakes and mishandling.”
