LONG-SERVING TT Line board chairman Mike Grainger has been forced out by the Tasmanian Government after a dramatic day of claim and counter-claim over problems with the Spirit of Tasmania replacements project.

The departure of Mr Grainger, who had been chairman since 2013, was announced late last night [15 August] in a brief statement by TT Line’s shareholding ministers, treasurer and infrastructure minister Michael Ferguson and transport minister Eric Abetz.

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

“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.”

Earlier in the day Tasmanian premier Jeremy Rockliff announced the government had intervened to appoint two senior executives “to collaborate with TT-Line and TasPorts project directors to ensure delivery” of the line’s troubled new East Devonport terminal development.

“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,” Mr Rockliff said. “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.”

Later in the afternoon came a statement from TT Line:

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

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 June 28.

“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 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.”

Evidently this was the last straw for the government.

It was also revealed late yesterday that the government had place advertisements internationally on 29 July seeking applicants for the chairmanship, and was also seeking to fill at least two director positions.