Jeremy Rockliff, Premier; Eric Abetz, Minister for Transport, 24 October 2024 

The way forward: Spirit of Tasmania vessels

The Tasmanian Government will prioritise the construction of berthing infrastructure at Berth 3E, proceeding with the most cost-effective and efficient recommendation provided by engineering and infrastructure experts Ben Moloney and Peter Gemell.

Revised timelines show the new Terminal 3 may not be completed until February 2027 unless risks are appropriately managed or mitigated. By accepting opportunities to accelerate the construction of Berth 3E infrastructure, it is anticipated that the completion date can potentially be brought forward to October 2026, in time for the 2026-27 peak summer period.

Announcing the way forward, Premier Jeremy Rockliff said that the Tasmanian Government would focus its resources on delivering the permanent berthing infrastructure as soon as possible.

“This situation we are in is extremely regrettable – but Tasmanians want us to deliver a solution,” the Premier said. “We have said we will sort the spirits, fix the GBEs and back Tasmania’s tourism industry, and that’s what we are doing today.

“Without the intervention of the Government and inserting Ben Moloney and Peter Gemell into the Project, it is likely that this project may not have been finished until much later, with several timing and risk mitigations already instigated.”

Minister for Transport, Eric Abetz, said while modifying Berth 1E  was investigated in order to bring the vessels to Devonport sooner, the Report has found it would be unsafe.

“Options to modify both Berth 1E and Berth 2E were also investigated but found any modifications would provide limited benefits, cost the taxpayer up to $60 million and would require significant timely and costly compensation and renegotiation of agreements. It would also pose risks of vessel allision,” Minister Abetz said.

“Ultimately, any financial investment into Berth 1E and Berth 2E would outweigh the benefits of bringing forward the timeline.

“With the first new Spirit of Tasmania vessel due to depart Finland in the coming weeks, TT-Line is now exploring opportunities to lease or charter the vessel during the interim period.

“It is still planned that the vessels will come to Tasmania for finalisation of fit-out.”

By leasing the vessels, Tasmanians will directly benefit from the financial returns and avoid the need for vessel storage costs. Leasing of the second vessel – which is expected to be delivered by the second half of 2025 – will also be explored.

Should leasing opportunities not prove financially beneficial, TT-Line will seek a cost-effective medium-term storage option in Tasmania.

If this eventuates, the Tasmanian Government will ensure that TasPorts will not charge TT-Line to store the vessels.

Minister Abetz said the Government expects TasPorts and TT-Line to work together and act in the best interests of Tasmanians.

“We will continue to oversee the delivery of this project, with the support of infrastructure delivery experts Ben Moloney and Peter Gemell,” Minister Abetz said.

“Despite the challenges, Tasmanians can be confident that Peter and Ben will get this project back on track and delivered.”

The Government has also released a significant tourism and hospitality package that will drive visitation, support our regional communities and boost Tasmania’s economy.

The Premier said we absolutely expect that visitor demand will continue to increase as more and more people realise that Tasmania is the best place in the world.

“I will also be bringing forward further proposed reforms to our government businesses shortly so that Tasmanians don’t experience a situation like this again,” Premier Rockliff said.

The full report will be publicly available on the Department of State Growth’s website.

A new webpage will also be launched, hosting regular project updates, tracking and information. This will be available on the Department of State Growth’s website in the coming days.

Media release – Jeremy Rockliff, Minister for Tourism, 24 October 2024

Backing our tourism industry

A comprehensive tourism and hospitality package has been announced to boost visitation around the state, support our local tourism and hospitality sectors and make life more affordable over the coming 24 months.

The Tasmanian Government recognises the impacts of the delays to the new vessels becoming operational is concerning for the tourism and hospitality sector, particularly in the North West and North of the State.

A suite of initiatives designed to drive visitation and support our economy will be delivered across peak and off-season periods.

Premier and Minister for Tourism, Jeremy Rockliff acknowledged the cost-of-living pressures being felt nationally, resulting in declining interstate and intrastate travel.

“Our Government is backing our tourism and hospitality industry – to ensure they continue to thrive, despite the challenges it faces,” the Premier said.

“Our package we are announcing today will benefit Tasmanians directly, but also sends a message to the rest of the country and world that Tasmania is the place to visit.”

Initiatives to drive visitation to Tasmania via the Spirit of Tasmania will include reduced fares over the peak periods and throughout winter and additional day sailings.

The Government will invest $6 million to subsidise passenger fares to boost demand and provide for additional day sailings.

The Tasmanian Government will also invest an additional $500,000, on top of the existing $5 million Aviation Fund, to increase aviation capacity across the state to attract more visitors. This investment will support new routes and increased frequency on existing routes across the state.

In addition to increasing aviation capacity, we will develop air and car hire packages to encourage those arriving by air to get out and enjoy our regions.

To enable our tourism and hospitality businesses and councils to prepare for the arrival of the new vessels, we will invest $5 million in a Spirit Preparedness Fund.

This Fund will support the development of new products and offerings, enhance existing attractions, and support councils to deliver key infrastructure such as signage and charging stations. This fund will work off a 50:50 co-contribution.

Premier Rockliff also announced the revival of the Government’s successful voucher scheme for Tasmanians.

“Recognising that times are tough for a lot of people, travel and discretionary spending is often the first thing to go,” the Premier said.

“To support our tourism and hospitality sector, we will launch a new voucher scheme, Eat Local, Stay Local, to encourage Tasmanians to travel and eat out.

“We will provide 100,000 vouchers, valued at $100 each.

“This will assist with making Tasmanian lives more affordable.

“To complement this voucher scheme, Tourism Tasmania will lead an intrastate marketing campaign to showcase what’s on offer and encourage more Tasmanians to enjoy what our State has to offer.”

A $5 million Events Tasmania Attraction Fund will be available to secure more events and business events for the State.

“Events like Bicheno Beams and Permission to Trespass have proven hugely successful in drawing visitors to our regions, providing a huge boost to the local tourism and hospitality industries,” the Premier said.

“We want to see more events like these in all corners of our state and this fund will encourage visitation and support our local communities.”

A tourism roundtable will meet again on November 1 to provide a further update on the timing and details of the initiative announced.

Media release – Dean Winter MP, Labor Leader, Shadow Minister for Tourism & Hospitality, 24 October 2024

Spirits fiasco a national embarrassment

It’s even worse than anyone could have imagined.

Jeremy Rockliff has further delayed the arrival of the Spirits, likely until 2027. The additional delay will cost our tourism industry another $500 million.

When they do arrive, the Spirits will be second-hand. Tasmanian taxpayers have paid nearly a billion dollars for new ships, but it’s now another country’s tourism industry that will benefit first. It is a national embarrassment.

The Premier has torn up his own government’s direction to TasPorts and TT-Line to build a temporary wharf at Berth 1, due to the massive cost, serious safety concerns, impact on SeaRoad and the fact the ships could only operate at half capacity from there anyway. We have been warning about these problems for months.

This could well be the biggest infrastructure stuff up in Australian history, and it has occurred on Jeremy Rockliff’s watch. He has been the Premier and Minister for Tourism since April 2022 and has not provided the oversight and leadership required for such an important project.

The fact is, Jeremy Rockliff’s minority government has stuffed up the Spirits, mismanaged our GBEs and let down our tourism industry.

After 10 years of the Liberals, Tasmanians will be wondering how much longer they can afford to put up with this complete and costly incompetence.

Media release – Josh Willie MP, Shadow Treasurer, 24 October 2024

Tourism support welcome, but where’s the money coming from?

Labor stands for jobs and we recognise the tourism and hospitality industry has been badly let down by the failures with the new Spirits project. The delays are costing the industry $500 million a year.

It has taken two months for the Liberals to finally back in Labor’s calls for additional day sailings on the existing Spirits. TT-Line needs to make these bookings available as quickly as possible to deal with the huge number of people unable to book.

But Premier Rockliff needs to answer one critical question: where on earth is the money coming from for all the other promises? Already since the worst budget in living memory, the Premier has racked up hundreds of millions in new spending.

His minority government has wrecked the budget and taken Tasmania from having zero net debt to record debt and the worst finances in the nation.

The State Budget only passed Parliament on Tuesday. The Liberals have become so irresponsible with money that they couldn’t even stick to their budget for 48 hours!

There’s no doubt the tourism industry is hurting, and the failures with the new Spirits have come at a huge cost. But Jeremy Rockliff needs to explain how all this new spending will be paid for.

Media release – TCCI, 24 October 2024

Response to TT Line announcement

TCCI CEO Michael Bailey said that the business community was appalled by the way the Government has mismanaged this project.

“This is a dark day for Tasmania,” Mr Bailey said.

“This is even worse than we first thought. The economic costs will be felt by businesses and taxpayers for years to come, our brand has been damaged and it has impacted on business confidence. Worst of all, it will be very difficult to trust this Government again because of this. It will certainly be difficult to trust them on the timelines they have set out today, but we hope that they will prove us wrong.

“We are calling on the Government to ensure that there is independent and honest oversight of the Berth 3 project that reports directly to the public so that we can closely monitor how the project is tracking. It’s difficult to see how we can rely on the Government to continue to mark its own homework after today’s announcement.

“Importantly, we need the Government to work with the business community to ensure our interstate friends know that Tasmania is open for business despite this complete fiasco. Additional day sailings must be scheduled and while the support for tourism is welcome, the impacts are widespread and affect primary industry, small business and transport sectors to name a few, which the Government seems to have forgotten.

“This just highlights that there are significant cultural and leadership issues in the Tasmanian Government and our GBEs and it is now time for an independent, arms-length review. We call on the Government to consider the Advocate’s call for a Commission of Inquiry into this whole sorry mess.”

Media release – Tasmanian Small Business Council, 24 October 2024

Tourism Initiatives to Dull the Pain

‘Hopefully the comprehensive tourism and hospitality package which has been announced today to boost visitation around the state and support our local tourism and hospitality sectors over the coming 24 months will dull the pain of the second announcement which came hot on its heels’, said Robert Mallett CEO of the Tasmanian Small Business Council.

‘By themselves and with a couple of shiny new ferries, thought to be on the horizon but sadly not, the initiatives announced today are just the thing that regional Tasmania needs after a challenging winter with the constant promises of rising cost of living pressures and the reality of the rising cost of doing business biting hard on the small business sector.

‘It will be interesting to see just how much positive impact that the initiatives to “drive visitation to Tasmania via the Spirit of Tasmania which will include reduced fares over the peak periods and throughout winter and additional day sailings” will have when the internet and radio abounds with stories of people unable to access a berth for their car and themselves on the Spirts for months on end.

‘Retuning to a proven favourite and “launch a new voucher scheme, Eat Local, Stay Local, to encourage Tasmanians to travel and eat out, and provide 100,000 vouchers, valued at $100 each” will provide that incentive for locals to do what we did in COVID and Go Local First.

‘It kept us well ahead of the pack then and may well assist us this summer.

‘The new initiatives are a valiant attempt to dull the pain the Government must know we all feel when we are told that we will need to wait 2 years to renovate a regional wharf to allow our ferries to dock when we can build Tasmania’s largest infrastructure project, the Bridgewater bridge in about the same time.

Media release – Rebekah Pentland MP, Miriam Beswick MP, 25 October 2024

TIME TO MAKE THE BEST OF A BAD SITUATION

Northern independents Miriam Beswick and Rebekah Pentland say the confirmed delay to the two new Spirits operating in Tasmania is extremely disappointing.

“We are thankful for today’s update from the Premier, but it confirms a monumental stuff-up,” Mrs Beswick said.

“To have two new Spirits heading to Tasmania but nowhere to berth them for another two and a half years is an embarrassing outcome.

“Tasmanian tourism businesses have every right to feel let down.

“But while all parties involved need to take responsibility, it’s time to make the best of a bad situation.

“We welcome the Government’s additional support for the tourism sector, and we’ll be watching how it’s rolled out very carefully.

“It must support the businesses most affected by the delays.

“And we’re pleased to see the option of leasing one or both of the new vessels will be considered.”

Bass MP Rebekah Pentland said leasing the vessels makes economic sense.

“The alternative is paying for them to do nothing for more than two years,” Mrs Pentland said.

“The timeframe justifies exploring leasing options.

“Ideally the Spirit of Tasmania signage would remain on display, creating a floating billboard for our state.

“We have to salvage as many positives as we can from a very disappointing situation.

“I’d urge the Labor Leader to reconsider his position on leasing the ships.

“The Opposition did a good job putting a spotlight on this issue, but the time for political point scoring has passed.

“This issue has been divisive enough already, it’s time to work together to make the best of the situation we’re in.”