TASMANIA’S Public Accounts Committee’s inquiry into TT Line’s the acquisition of new Bass Strait ro-paxes new terminal infrastructure has heard of considerable ministerial dissatisfaction with the government-owned company’s board and management.
Nevertheless, the government is taking no immediate action to spill positions, telling local media in a statement that “While it retains confidence in the board of TT-Line, the government’s serious concerns over port infrastructure delays – which were clearly outlined in the ministerial direction – remain.”
The ministerial direction, issued by TT Line’s shareholder ministers treasurer and infrastructure minister Michael Ferguson and transport minister Eric Abetz six weeks ago formally ordered TasPorts and TT Line “to take all the necessary action” to prepare terminal infrastructure for the arrival of the new Spirit of Tasmania ro-paxes.
The directive followed revelations that the cost of TT Line’s shoreside works at East Devonport had blown out from $90 million to $375 million after an initial contract fell through, and that the new terminal will not be available until 2026, long after the new ships are due to enter service. The cost of adapting TT Line’s existing berth to handle the new ships has been pit at $50 million.
Minister Ferguson yesterday told the inquiry the government had received regular updates from the TT Line board about the vessel-replacement program until the pre-election caretaker mode started on 14 February. When that ended he was “so surprised” and “profoundly disappointed” to discover there was no longer a preferred tenderer in place for the terminal work, which had been scheduled for completion in August this year.
Earlier, TasPorts chairman Stephen Bradford told the inquiry the company had been “consistently concerned” with TT-Line’s progress on the Quaylink project, including the berth 3 upgrade, since December 2022. TasPorts had attempted to support the fellow state-owned company in a number of ways, including with the procurement process.
“They have chosen at all points to do it themselves,” Mr Bradford said. “The berth was available for [TT-Line] – just appoint a contractor, who should have been appointed, and get on with it.
“Despite the many challenges, our responsibility of Quaylink, as far as at berth is concerned, was completed on the eighth of July this year, and are within budget.”
