Eric Abetz, Minister for Transport; Michael Ferguson, Treasurer, 14 August 2024, timestamp 19:40

Statement on TT-Line

The Tasmanian Government has requested and accepted the resignation of the Chair of TT-Line, effective immediately.

It has become clear the relationship between the Government and the Chair has become untenable.

The Government is committed to delivering the new Spirits and the infrastructure to support their arrival.

The Tasmanian Government is confident that the project can now move forward – collaboratively and in partnership with TT-Line, TasPorts and the Department of State Growth – and we look forward to soon welcoming the new Spirits into the waters of the Mersey.

Jeremy Rockliff, Premier, 14 August 2024, timestamp 14:04

Appointments made to deliver new Spirits infrastructure

The Tasmanian Government has further intervened to help deliver the temporary berth facility and ensure greater capacity at Devonport ahead of the arrival of the new Spirits of Tasmania.

Premier Jeremy Rockliff said two key appointments have been made.

Ben Moloney, who is currently responsible for the management of the delivery of the $786 million new Bridgewater Bridge, has been appointed to collaborate with TT-Line and TasPorts Project Directors to ensure delivery.

Prior to his role on the Bridgewater Bridge, Mr Moloney oversaw the delivery of the $584 million Royal Hobart Hospital redevelopment.

Infrastructure delivery expert, Peter Gemell, has also been appointed to oversee the project, to ensure the berth is ready as soon as possible and also allows for increased capacity for passengers and vehicles.

Mr Gemell will bring a wealth of experience – developed over 40 years managing major infrastructure, buildings and services projects for the private sector and government sponsor agencies.

Additionally, shareholder Ministers will issue further directions to both TT-Line and TasPorts that provide for greater responsibility and access for the Department of State Growth.

The move is in addition to the issuing of a ministerial directive to the two businesses after the Government was made aware of unacceptable delays in the project.

Premier Jeremy Rockliff said that the delivery of the new vessels is a massive project, and an important one for Tasmania.

“I have been clear of my disappointment in these delays, and it’s frankly not acceptable.

“We will pull out all stops to get this done as soon as possible.

“I’m not interested in excuses, or the blame game. I want solutions and I want them now. That’s what Tasmanians deserve and expect.”

As part of our 2030 Strong Plan for Tasmania’s Future, we’re delivering bigger and better infrastructure for all Tasmanians to enjoy and utilise.

The building of the new, purpose-built ships is a once-in-a-generation project that will deliver significant benefits to Tasmania’s visitor economy and the broader Tasmanian economy for many years to come.

Media release – TT-Line, 14 August 2024

TT-Line Company Pty Ltd statement

The Board of TT-Line Company Pty Ltd has disputed elements of the evidence presented to the Public Accounts Committee on Monday 12 August.

Chairman Michael Grainger said he looked forward to “setting the record straight” when he and members of the management team presented follow up evidence after an initial appearance on 28 June 2024.

“Out of respect for the PAC process, while noting the significant community interest in the matter, we will be providing our factually correct evidence to the PAC first,” he said.

“At a high level, the Board, which met on Tuesday, stands by its recent decisions and the processes around those decisions, particularly related to paying additional funds to Finnish shipbuilder Rauma Marine Constructions (RMC) to complete our two new Spirit of Tasmania ships.

“Further, we look forward to explaining in greater detail the context for the decisions the Board took in relation to the terminal development at berth 3 in Devonport.”

Mr Grainger said the company would shortly take delivery in Finland of the first of its new Spirit of Tasmania vessels to operate between Devonport and Geelong.

“The company is very much looking forward to receiving a date from TasPorts for when berth 1 will be ready to accommodate our first new Spirit of Tasmania vessel, Spirit of Tasmania IV,” he said.

“We have signed a contract with a partnership comprising national and Tasmanian companies – Spirit Partners – to relocate our Devonport base of operations from its existing berth 1 to berth 3.

“BMD Constructions, with which we worked closely to deliver Spirit of Tasmania’s Geelong Port facility, will be joined in the partnership by Fitzgerald Constructions Australia (which also worked with BMD in Geelong) and local Tasmanian companies Bridgepro Engineering, Gradco and Vos Constructions.”

Anita Dow MP, Deputy Labor Leader, Shadow Minister for Infrastructure, 14 August 2024

TT-Line declares war on Ferguson and TasPorts

The entire board of TT-Line has today accused Deputy Premier Michael Ferguson and TasPorts of lying to a Parliamentary inquiry.

This appalling new development—just the latest in a long line of disasters with the new Spirits project—is effectively a declaration of war on Michael Ferguson and TasPorts.

The company’s Chair, Michael Grainger, said he is looking forward to “setting the record straight” at TT-Line’s next appearance before the Public Accounts Committee.

Frankly, Tasmanians shouldn’t have to wait that long. If Michael Ferguson or TasPorts have provided misleading evidence to the inquiry, they should correct the record immediately.

The new Spirits project is already five years late, $500 million over budget, and the Liberals’ failure to deliver is costing our tourism operators dearly.

How will the Liberals ever deliver this vital project if they’re at war with TT-Line?

Rockliff loses confidence in Ferguson to deliver Spirits

Premier Rockliff announced he has appointed Ben Maloney and Peter Gemell to oversee delivery of the new Spirits project, after completely losing confidence in Michael Ferguson.

And who could blame him? Under Ferguson’s watch, this project has spiralled into the biggest infrastructure stuff up in Tasmanian history.

Jeremy Rockliff could appoint all the King’s horses and all the King’s men, but it still won’t get this disaster back on track.

The Spirits are five years late, $500 million over budget and unable to operate at full capacity when the first ship is operational – and we are still not sure when this will be.

Businesses in the north west and tourism operators across the state have been let down by the Liberal Lambie Government.

Despite being the shareholder Minister for both TT-Line and TasPorts, Ferguson claimed that he was ‘left in the dark’. The only people who have been left in the dark are the Tasmanian people.

Tasmanians are sick of this government failing to deliver, and it was only a matter of time before Jeremy Rockliff got sick of his Deputy’s incompetence.

Media release – Dean Winter MP, Labor Leader, Shadow Minister for Tourism & Hospitality, 13 August 2024

TasPorts contradict Ferguson

The new Spirits project, when fully delivered, is going to be a great thing for Tasmania.

Michael Ferguson’s incompetence has allowed the project to snowball into the biggest infrastructure stuff-up in our history.

Yesterday, Treasurer Ferguson tried to claim that he was “kept in the dark”, but the only people who’ve been kept in the dark are the Tasmanian public.

Appearing in front of the Public Accounts Committee, TasPorts said they regularly updated Ferguson on their concerns around TT-Line’s ability to deliver the berth 3 upgrades.

His response was effectively to do nothing. It was an extraordinary approach given the project is worth at least $350 million for every year it is delayed.

Despite his best efforts to throw TT-Line overboard, as the shareholder Minister, Michael Ferguson needs to take responsibility for this mess.

Like Jeremy Rockliff, he has not apologised and not taken responsibility. He should do both.

Media release – Anita Dow MP, Deputy Labor Leader, Shadow Minister for Infrastructure, 12 August 2024

Ferguson refuses responsibility and tries to throw TT-Line under the bus

A defensive Michael Ferguson was clearly feeling the heat this morning – wasting no time in trying to throw TT-Line under the bus for what many are calling the biggest infrastructure stuff-up in Tasmanian history.

Despite being the shareholder Minister for both TT-Line and TasPorts, Ferguson claimed that TT-Line acted without his knowledge and didn’t advise him of their decision to change contractors for the berth 3 upgrades at Devonport which has delayed the timeline for completion.

The Treasurer referred to TT-Line’s actions as an ‘inadvertent oversight’ and claimed that his knowledge was that the berth 3 upgrades were on track for completion in time for the new Spirits’ arrival.

The fact Treasurer Ferguson thought everything was on track despite nothing being signed and nothing being built less than a year out from the ships’ arrival date is extraordinary.

Treasurer Ferguson brought the companies together for a special meeting back in November 2023 and then asked for monthly updates from both TT-Line and TasPorts. Clearly, he was concerned about the lack of progress, but he allowed the problems to escalate.

According to Ferguson, the Government feel like they have been let down by TT-Line throughout this saga – the Treasurer should realise that the Tasmanian taxpayers feel let down by his Liberal Government’s failure to deliver, and his personal failure as the shareholder Minister.

Businesses in the North West have been let down by the Government. The Spirits are five years late, $500 million over budget and unable to operate at full capacity when the first new Spirit is finally operationally – and we are still not sure when this will be.

Tasmanians are sick of this government failing to deliver projects crucial to the state, and the economy.

Dean Winter MP, Labor Leader, Shadow Minister for Tourism & Hospitality, 7 August 2024

Liberals continue attempts to hide the truth on Spirits

Two years ago, Labor asked the Treasurer whether the contract price of the Spirits had changed. It had, by more than $13 million, but he denied it to a Parliamentary Committee.

During caretaker in the election, TT-Line made an $80 million bailout payment to the Finnish shipbuilder. The Premier never planned to tell Tasmanians.

In May, Labor asked whether the cost of the wharf upgrades had blown out to around $350 million. It had, but the Premier told Parliament it wasn’t true.

Yesterday, Labor asked whether Berth 1 was too shallow for the new ships to operate full capacity. The Premier tried to keep the truth from the public by offering us a private briefing – but it came out anyway.

Today, when asked how long the new Spirits will operate at reduced capacity at Berth 1 while we wait for Berth 3 to be completed, the Premier could again only offer us a private briefing.

The new Spirits are going to be fantastic for our state, but they’re now five years late and $500 million over budget. It’s time Tasmanians—and especially our tourism operators—finally got some answers from Premier Rockliff.

Spirits scandal deepens with revelations new ships can’t operate at full capacity

In the latest chapter of the Liberals’ deepening Spirits scandal, TT-Line has confirmed that the new vessels will have to operate at reduced capacity until the delayed Berth 3 upgrades are complete, raising serious questions about why the Government is spending $50 million on upgrading the temporary Berth 1 solution.

The whole point of the new Spirits is that they can carry more passengers, vehicles, and freight in and out of the state. Economist Saul Eslake has estimated the Liberals’ delays in delivering the ships are costing the Tasmanian economy $350 million each year they are late.

Given we now know the new vessels will only be able to carry the same number of passengers and cargo as the current vessels, the Premier’s fabricated explanation of why it’s necessary to spend $50 million for a temporary solution doesn’t cut it. Yesterday, he didn’t even seem to be aware that Berth 1 wasn’t deep enough to dock a fully loaded ship.

The Premier’s response in Question Time today confirms the Berth 1 upgrades are nothing more than a $50 million PR exercise to save them the embarrassment of having the new Spirits in Tasmania, but not in operation.

Despite the Liberals having seven years to prepare, work hasn’t even started on the Berth 3 upgrades. The Spirits project is now at least five years overdue with $500 million of unnecessary Liberal spending added to the taxpayers’ tab for the project.

This has become the biggest infrastructure stuff up in Tasmanian history, and the Premier has been determined to keep the truth from Tasmanians every step of the way.

Media release – Spirit of Tasmania, 1 August 2024

Spirit of Tasmania Devonport Terminal 3 contract signed

Spirit of Tasmania has signed a contract with a partnership comprising national and Tasmanian companies – Spirit Partners – to relocate its Devonport base of operations from its existing terminal to Terminal 3.

BMD Constructions, which delivered Spirit of Tasmania’s Geelong Port facility, will be joined in the partnership by Fitzgerald Constructions Australia (which also worked with BMD in Geelong) and local Tasmanian companies Bridgepro Engineering, Gradco and Vos Constructions.

Spirit of Tasmania Managing Director and Chief Executive Officer Bernard Dwyer said the new site, at seven hectares, was almost double the size of the company’s current lease.

“Being located on a previously undeveloped parcel of land between SeaRoad Shipping and the Mersey Yacht Club will provide additional operational areas for passenger and freight customers,” he said.

“We are very excited to be reaching this major milestone with the appointment of these highly experienced contractors.

“It will be fantastic to see the major works commence following the completion of significant planning and design work.”

BMD Constructions General Manger VIC/SA/TAS Ivan Fratric said as principal contractor BMD Constructions was focused on delivering the project collaboratively.

“Relationship contracting is at the heart of the way in which we operate and we have a proven track record of delivering exceptional project outcomes through this approach,” he said.

“As a proud family-owned business, we will work with Spirit of Tasmania, our delivery partners and local Tasmanian businesses to leave an enduring legacy through the infrastructure we deliver, employment opportunities we create and local business relationships we form.”

Mr Dwyer said after the site establishment works were completed in August, site earthworks were expected to start in October.

“This will be followed by landside structures in November and marine foundation works from December,” he said.

In addition to the infrastructure planned for construction, TT-Line has placed orders with Cavotec, a world leading port technology company, to supply state of the art technology for the new terminal including:

  • Automated Mooring Units (AMUs) to provide more efficient berthing operations.
  • A shore power system that will allow the new vessels to be connected to grid electricity while in port, reducing fuel consumption and carbon emissions.


Media release – Josh Willie MP, Shadow Treasurer, 8 July 2024

Michael Ferguson and TT-Line must explain themselves over secret Spirits payments

Treasurer Michael Ferguson owes Tasmanians a full explanation after being caught misleading Parliament over a secret, multi-million dollar payment to a Finnish shipbuilder.

In April 2022, Michael Ferguson agreed to pay nearly $13 million of taxpayer money to the Finnish company building the new Spirit of Tasmania ships, despite a fixed-price contract being in place.

Not only did the Treasurer fail to disclose the payment publicly, six months later he repeatedly told a Parliamentary committee that the price of the new ships had not changed. He knew full well it had.

The Treasurer secretly gave $13 million to a Finnish shipbuilder, and then lied to Parliament to cover it up. He needs to explain himself immediately.

But this sorry saga doesn’t end there – TT-Line also has questions to answer.

The CEO told the same Parliamentary committee that the price of the ships “will not have changed from last year to this year”, when it had.

After years of delays and nearly $100 million of secret payments being gradually exposed, Tasmanians deserve answers.

Media release – Eric Abetz, Minister for Business, Industry and Resources, 5 July 2024

Winter needs to apologise for stunning Sprits stuff up

Before anyone can take Mr Winter’s latest attempted attack on TT Line seriously, he needs to enumerate the ‘three’ payments about which he complains.

He has only listed two.

The latest attack embarrassingly exposes Mr Winter’s commercial inexperience and ignorance.

Faced with the shelling of the steel manufacturer in the Ukraine and resultant increased cost in materials, it was common sense and commercial reality for TT Line to vary the fixed price contract with the shipbuilder while retaining the status of a fixed price contract.

To not do so would’ve exposed TT Line to acting in bad faith and destroying the vitally important relationship between the builder and customer.

Is Mr Winter really pretending to suggest his commercial expertise is superior to that of the TT Line Board?

Further, any modicum of commercial know-how would tell Mr Winter that commercial in confidence considerations are needed to ensure TT Line got the best deal for Tasmanians.

If TT Line had followed Labor’s apparent advice, Tasmanians would have been left with two half-finished vessels on the far side of the world, hundreds of millions of dollars extra in costs and an even longer delay in the delivery of the job and economy boosting new ferries.

Instead, we have the first new Spirit of Tasmania vessel successfully completing its first sea trial in the open seas off Finland and the second new vessel due to be launched shortly.

Under our 2030 Strong Plan for Tasmania’s Future, we are investing in regional tourism and sustainably growing our visitor economy.

Mr Winter’s latest effort unfortunately demonstrates, yet again, that Labor has provided Tasmanians with another Leader of the Opposition more focussed on cheap attacks than the long term good of the state.

Dean Winter, Labor Leader; Anita Dow MP, Shadow Minister for Infrastructure, 5 July 2024

Third secret Spirits bailout payment revealed

A third secret bailout payment to the Finnish shipbuilder responsible for the new Spirits project has been revealed by the Public Accounts Committee.

The Committee has learned that in April 2022 an additional, secret payment of €8million—nearly $13 million AUD—was agreed to by TT-Line, with the prior knowledge of the Treasurer, Michael Ferguson. The TT-Line Chair told the Public Accounts Committee:

“On the 25th of April 2022, we sent a letter to our Minister and Treasurer about the negotiated contract price, which was €8 million in the contract price to cover those steel price increases due to the war in Ukraine for hull 6009. That was the first contract price change.”

Not only did Michael Ferguson hide this eight-figure extra payment from Tasmanian taxpayers, he also appears to have misled a Government Business Estimates hearing six months later. He told that hearing that “the contract… is a fixed-price contract. Despite impacts that the Chair indicated earlier, it is fixed price, therefore there is not a view that the price has changed.”

But the price had changed—on a supposedly fixed-price contract—and Tasmanian taxpayers were on the hook for another $13 million.

Delays, cost blowouts, dishonesty – once again the Liberals’ inability to deliver big projects is on full display. Michael Ferguson owes Tasmanians a full explanation.

Public Accounts hearing (available here at 12:00)

Mr Grainger – Certainly, COVID had an impact, the Ukraine war had an impact. If you will recall, the major steel manufacturing plant for Europe was in Ukraine and that was bombed very early on in that war which caused RMC to seek steel from alternative sources at a higher price. On the 25th of April 2022, we sent a letter to our Minister and Treasurer of the negotiated contract price, which was €8 million in the contract price to cover those steel price increases due to the war in Ukraine for hull 6009. That was the first contract price change.

On the 31st of May 2022, we had an amendment to that new build, 6009 (Spirit IV). We executed an amendment to the contract to change of the contract price due to unforeseen price increase of the shipbuilding steel products, steel plates and profiles as a result of the Russian-Ukraine war and to respective change of the construction milestones and delivery date.

On the 28th of October, we executed an amendment to the contract for hull 6010…

Ms Forrest – That’s in 2022 still?

Mr Grainger – 2022. Spirit V to reflect the construction milestones and delivery dates. On the same day we executed an amendment to the contracts to reflect changes in the builder’s bank account. The builder had changed banks.

On the 14th of May 2023, we executed an amendment to the contract for hull 6010 to reflect the construction milestones.

Media release – Josh Willie MP, Shadow Treasurer, 29 June 2024

Premier must be held accountable for misleading Parliament – including by his coalition partners

Yesterday’s Public Accounts Committee hearing provided clear cut evidence that Premier Jeremy Rockliff has misled Parliament – and he needs to be held accountable.

Last month, the Premier took on notice a question about the cost of upgrades to Devonport Port. Later that evening, the House was told:

“In response to the question by the Leader of the Opposition to the Premier asking “can he confirm that the latest estimate of the cost of Devonport upgrades is now around $350 000 000”, I can advise the answer is no.”

When the cost of the project was subsequently revealed to be $375 million, the Premier claimed he had not been advised of the updated cost estimate at the time the answer was given.

Both statements were untrue.

The CEO of TT-Line revealed yesterday that not only was the government advised of the cost estimate in December last year, but they had even approved an increase in TT-Line’s borrowing limit to fund the increased cost of the wharf upgrades.

This is now an open and shut case of misleading Parliament, as well as a clear breach of the Ministerial Code of Conduct.

The Premier must be held to account for his actions – including by his Lambie coalition partners.

Do they stand for transparency and accountability, as they claim? Or do they stand with the Liberals, no matter how they behave? The standard you walk by is the standard you accept.

Media release – Anita Dow MP, Deputy Labor Leader, Shadow Minister for Infrastructure, 28 June 2024

Confirmed: Premier misled Parliament

In an extraordinary development this afternoon, TT-Line has confirmed the Premier knowingly misled Parliament last month about the massive cost blowouts at Devonport Port.

Last month, the Premier took on notice a question about the cost of the wharf upgrades at Devonport. Later that evening, the House was told:

“In response to the question by the Leader of the Opposition to the Premier asking, “can he confirm that the latest estimate of the cost of Devonport upgrades is now around $350 000 000”, I can advise the answer is no.”

When the cost of the project was revealed to be $375 million, the Premier tried to claim he had not misled Parliament because his government had not been advised of the updated cost estimate at the time the answer was given.

But today, the CEO of TT-Line sensationally told the Public Accounts Committee the Government was advised in December 2023 of the estimated cost blowouts, and in that same month the Government approved an increase in TT-Line’s borrowing limit to cover the additional estimated costs.

It appears not only did the Premier mislead Parliament in his original answer—which he took a full day to prepare—but also subsequently misled Tasmanians by claiming the government had not been advised of the updated cost estimate. Once again, the Liberals have been caught out being dishonest with Tasmanians.

Misleading Parliament is extremely serious and has serious consequences. The Premier must provide a full and immediate explanation of his conduct.

Media release – Eric Abetz, Minister for Transport; Michael Ferguson, Minister for Infrastructure, 25 June 2024

Tasmania prepares for new spirits

The Tasmanian Liberal Government has taken further steps to ensure the Devonport port redevelopment remains on track to meet its goals.

In an exciting development, the first of the new Spirit of Tasmania ships has successfully completed the first trial run in the open seas off Finland.

Minister for Transport, Eric Abetz, said that while there is still further work to be done before the vessel is in service, this is an important and welcome step forward.

“All going well, we expect that the first of the new ships will be ready for delivery in Q3 of 2024, commencing its journey to Tasmania not long after,” Minister Abetz said.

“TT-Line has also now finalised the procurement process for the Berth 3 redevelopment, with a new preferred contractor now secured.”

Following recent advice, shareholder Ministers, Michael Ferguson, and Eric Abetz, have formally directed TT-Line and TasPorts to take all the necessary action in relation to the berthing projects at Devonport Port, ensuring the appropriate portside infrastructure is in place to support the arrival of our new ships.

TasPorts will undertake additional and immediate works to Berths 1 and 2 at Devonport Port to ensure suitable berthing is available in time for the arrival of the first new Spirit of Tasmania ship.

The move follows recent advice from TT-Line of projected delays in the completion of the Berth 3 project which confirmed it would not be ready until January 2026.

TT-Line has advised the Government that the latest total cost estimate for the development of Berth 3 project is approximately $375 million, including costs already incurred to date. The revision is due to a global increase in materials and construction costs.

Minister for Infrastructure, Michael Ferguson, said that pre-caretaker, there was a preferred contractor in place and a public commitment by TT-Line that the new berth would be ready.

“The decision to rescind the preferred-contractor status was a unilateral decision taken by TT-Line within its responsibilities due to cost escalations,” Minister Ferguson said.

“The Government’s position remains that appropriate berthing must be in place at Devonport to support the arrival of our new ships.

“This expectation extends to TT-Line ensuring that appropriate fuelling arrangements are in place to support the new vessels both at Berth 1 and Berth 3.”

The Tasmanian Government will also provide enhanced oversight of both berthing projects, with TT-Line and TasPorts required to provide full and immediate advice throughout the projects to shareholder Ministers, including any advice relating to the timing, delivery and cost of the vessels.

Media release – Dean Winter MP, Labor Leader, 22 June 2024

Spirits inquiry sets sail for answers

Tasmanian Labor stands for safe, secure and well-paid jobs.

That’s why we’re pleased that Tasmanians are one step closer to getting answers about the Liberals’ cover-ups and delays regarding the Spirit of Tasmania replacement project, following the establishment of a parliamentary inquiry into the matter yesterday.

On Wednesday, I met with Public Accounts Committee Chair, Ruth Forrest to discuss my concerns around the TT-Line’s decision to alter its contract with RMC, pay $80 million of Tasmanian taxpayer money and its potential breach of caretaker conventions. Following that meeting I wrote to her with proposed terms of reference for a Public Accounts Committee (PAC) inquiry and I am pleased the Committee has agreed to undertake that work.

We look forward to finally getting some answers to the questions being asked by Tasmanian people and businesses affected by the delays, including:

  • How much will the ships actually cost the Tasmanian taxpayer?
  • When will Spirits IV and V be in service?
  • What is going on with the Devonport Port upgrades, which are critical to the ships’ operation but have had the tender documents torn up?
  • Did TT-Line meet its caretaker convention obligations?
  • What has happened to the promises of $100 million of local content, which includes a significant refuelling commitment?

The Spirits replacement is the largest and most significant infrastructure project in the state’s history and Tasmanians deserve full transparency around the project.