Media release – Jeremy Rockliff, Premier, 3 November 2024

Better Together

In a landmark move to enhance the efficiency and sustainability of Tasmania’s transport and logistics services, Premier Jeremy Rockliff has today announced the government will consider the proposed merger of TasPorts, TT-Line and TasRail into a unified government-owned entity.

The move is part of a suite of sweeping changes being proposed to address shortcomings in Government-Owned Businesses and State-Owned Companies.

“We have seen growing concerns around the performance, accountability, and coordination of some of our government businesses,” Premier Rockliff said.

“Recent issues have highlighted the need for a more strategic, long-term approach to managing Tasmania’s critical infrastructure.

“We also require a greater customer focus and better service delivery.”

The possible merger of TasPorts, TT-Line and TasRail into a new entity would unite the businesses to form an integrated transport and logistics business, bringing together Tasmania’s key transport and logistics assets under a single operational framework. This will ensure a more integrated, cost-effective, and responsive system for the people of Tasmania.

“That’s why we will consider pursuing this merger—to streamline operations, reduce inefficiencies, and deliver better outcomes for Tasmanian businesses, industries, and everyday Tasmanians.

“The move is designed to enhance the work the staff of these businesses deliver day-in day-out.

“They will be kept up-to-date as we progress these proposed changes, and the opportunities created by this vision.”

The evaluation of the proposed merger will determine if the move will deliver:

  • Stronger economic growth: A more coordinated approach to freight, port operations, and passenger transport to support Tasmania’s industries and create new opportunities for trade and investment.
  • Better customer service: Improving the customer service experience with a Team Tasmania approach to client service.
  • Improved efficiency: Centralising administrative and operational functions based in north-west Tasmania to reduce duplication and allow for better allocation of resources.
  • Sustainability: A unified focus on optimising rail, ferry, and port services to ensure the long-term sustainability of Tasmania’s transport sector.

The Tasmanian Government will undertake a detailed restructuring analysis to assess the proposal and ensure a smooth transition.

The analysis will also identify any potential regulatory, legal and competition issues.

“This is not just about fixing current issues—it’s about building a system that is robust, future-proof, and capable of supporting Tasmania’s growing economy,” he said.

“Consideration of this proposed merger will lay the foundation for a ‘Team Tasmania’ approach that will help reach our state’s potential.”

The merger is one part of a wider plan to fix government businesses with governance reforms being proposed, including:

  • Updating the principal objectives of the businesses to put Tasmania’s economic growth first.
  • Putting the Tasmanian people at the top of all organisational charts.
  • A minimum of 50 per cent of board members are Tasmanian.
  • Legislatively require that the two Shareholding Ministers’ roles cannot be undertaken by the same person.
  • Mandating board renewal by limiting the number of years directors and chairs can serve.
  • Introducing gateway reviews and project assurance processes for large projects.
  • Introducing board performance reviews.

“I look forward to feedback on these proposals and to finalising the changes needed to ensure Government Owned Businesses are better together and working in the best interests of Team Tasmania.”

The Government Business Governance Reform – Draft Plan can be found here.

Media release – Dean Winter MP, Labor Leader, Shadow Minister for Tourism & Hospitality, 3 November 2024

Rockliff adopts Labor’s GBE Governance Reforms

Under my leadership, Tasmanian Labor stands for jobs. That is why we have been relentless in our pursuit of Jeremy Rockliff’s mismanagement of TT-Line and TasPorts over the ferries fiasco.

The Premier has effectively copy and pasted Labor’s proposed GBE governance reforms we announced a month ago and I welcome that.

But these reforms need to happen immediately and the Premier should commit to them being legislated before the end of the year. They should not be left to sit with the more dubious and improbable distractions in the rest of the document.

We have a fleet of Government businesses which are overloaded with debt, performing poorly and not focussed on growing Tasmania’s economy.  These boards need to listen to the business community, look after their workers and act in the best interests of the state.

The remaining components of today’s announcement range from dubious, risky to terrible ideas.

There are serious risks with a merger of GBEs for the tourism and transport sectors in particular. And yet again, the Liberals have put privatisation on the agenda, with the report threatening to privatise all GBEs, including our Hydro. I can categorically state that Tasmanian Labor will not support this shocking privatisation agenda, and if needed, we will fight the Liberals on this, just as we did in 1998.

Labor’s plan to get our GBEs back on track includes:

  • Modernise the legislative framework for our government businesses, by replacing the 30 year old Government Business Enterprises Act 1995 with a new Tasmanian Government Business Constitution Act.  This would include a requirement for quarterly reporting to Parliament to enhance accountability and new reporting requirements, including board performance reviews.
  • Make it law that our government businesses are acting in the best long-term interests of Tasmania, not just their own self-interest, by requiring them to always consider the broader Tasmanian economy in their decision making. We will establish this requirement in legislation as charters and letters of expectation have proven ineffective. This will also have direct benefits for local businesses competing in procurement processes.
  • Reduce the confusion caused by the Corporations Act, by reviewing the government business portfolio to ensure they are appropriately classified as GBEs or SOCs, with a view to optimising their governance models.
  • Prevent the failures we’ve seen on Michael Ferguson’s watch occurring again, by requiring that at all times there are two separate shareholder ministers for all government businesses.
  • Bring in fresh ideas and new leadership, by setting a two term limit for board appointments, a strict rule that people cannot serve on more than two government boards at once, and a policy preference that people will not serve on more than one wherever possible.

Media release – Josh Willie MP, Shadow Treasurer, 4 November 2024

Liberals need to be upfront about privatisation agenda

While Labor welcomed most of the proposed changes to GBE governance proposed by the Liberals yesterday, the proposal in its entirety is riddled with risks and raises the concerning prospect of privatisation.

Worryingly, the Liberals’ proposal outlines that the government will actively investigate privatisation of some GBEs, with transport and energy related businesses “the initial priority focusses for such a review”.

The Liberals needs to come clean about what’s on the table here.

It’s disingenuous to open such a review without providing any indication about the government’s position on the privatisation of GBEs which are supposed to serve the state.

The Premier was quick to rule the privatisation of Hydro, but the fact he won’t do the same for TasNetworks, Aurora or the other GBEs speaks volumes about their intentions.

And how on earth will privatising our energy and transport businesses do anything to fix the Spirits mess of his creation which sparked this process?

What we do know is that privatisation often ends in increased user costs and decreased service – which all Tasmanians would agree is something we can’t afford right now.