THE TASMANIAN GOVERNMENT has bitten the bullet on the vexed question of the introduction of TT Line’s new Spirit of Tasmania ferries and will postpone their introduction until their bespoke new East Devonport terminal can be completed.

Premier Jeremy Rockliff and transport minister Eric Abetz announced a series of decisions this morning, based on the recommendations of project consultants Peter Gemell and Ben Maloney, appointed in August by the government to advise on the best way forward.

The new terminal was to have been completed by August this year ahead of the (delayed) arrival of the first ship but a contract failure that sure the cost rise from $90 million to $370 million saw the government propose a temporary terminal at TT Line’s existing berth at 1 East, but this has now been rejected on cost and safety grounds.

A revised timeline for the work at 3 East, presented to the government last week, added a year to the most recent completion date of early 2026 although there is hope the project can be accelerated to be ready for 2026-27 peak tourist season.

Meanwhile, the government is exploring the leasing out of Spirit of Tasmania IV which was delivered to TT Line on 12 September but remains at the yard of builder RMC in Finland. Spirit of Tasmania V is due for delivery early next year. However, Mr Abetz said it was still intended the vessels come to Tasmania for final fit-out.

In mid-August Mr Abetz, and former infrastructure minister and treasurer Michael Ferguson, as shareholding ministers, issued TT-Line and TasPorts with a direction to expedite modifications to  Berth 1. But Mr Abetz said today the Gemell-Moloney report found that this plan was unsafe, a view held strongly by professional mariners and port neighbour Searoad Shipping.

Mr Abetz said any modifications would provide limited benefits, cost the taxpayer up to $60 million, and would require costly compensation and renegotiation of agreements.

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

There were hints at today’s announcements yesterday when Premier Rockliff revealed a comprehensive tourism and hospitality package “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,” Mr Rockliff, who is also tourism minister, said.

Initiatives to drive visitation to Tasmania via Spirit of Tasmania Bass Strait service 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.