Buy local bid to delay ferries
TASMANIA’S largest-ever infrastructure project is in disarray after the government announced it was going back to the drawing board to find replacement ferries for the TTLine.
Announced in 2018, the two new ferries were supposed to be in service by March next year.
Instead, the government has gone against the advice of the TT-Line board and will try to find a local builder for some or all of the $850 million plus project.
A decision is expected in three to six months and could benefit local fast catamaran company Incat — but there is so far no timeline, revised budget or new specifications for the ferries.
Premier Peter Gutwein said the procurement process would be halted and a task force made up of state and federal officials plus TT-Line representatives would look at the options.
Mr Gutwein blamed the economic disruption caused by the coronavirus pandemic for the decision, which was taken in the past few weeks after consultation with Prime Minister Scott Morrison.
“On one hand, we have a decision whereby we see more than $850 million invested in a European country supporting European jobs, providing what would without doubt be an excellent product and based on the TT-Line business case, a product that will stand the state in good stead for many years to come,’’ he said.
“On the other hand, we have the opportunity to explore how much of that investment could occur within the state, or within our country.
“What we need to do is to take every opportunity to consider how much investment we can deliver in Tasmania out of such a significant purchase and how many jobs we can underpin in this state as we begin to rebuild.
“To me it’s a no-brainer that we take this opportunity to actually ensure we can get the right outcome and fit-for-purpose vessels at the end.”
The decision, taken three years into the replacement project, leaves it unknown who will build the ferries, at what cost and specification and when they might be delivered.
It is believed local builders were considered early in the process but none had the capability.
TT-Line chairman Michael Grainger would not say the TT-Line board was happy with — or supported — the government’s decision.
“We made a recommendation to our shareholder ministers that was ultimately not accepted,” Mr Grainger said.
“We understand why that happened and we’ll continue to move on and make sure that whatever we do in TT-Line is the right thing to do.
“The board understands the government’s decision.
“We’re in very trying times and the world has changed dramatically. We’re all aware of that.
“So the board understands the decision, and certainly there has been no lack of communication between the board, myself and between myself and the shareholder ministers.”
He said that in the meantime the government-owned company would continue to operate the 22-year-old Spirit of Tasmania I and II, despite capacity restraints.
Transport Minister Michael Ferguson said there was “no rush” to replace the vessels.
“We know that the industry capability in Australia is limited, that’s the reason that previously we’ve been looking
offshore,” Mr Ferguson said. “We don’t know exactly what this will lead to but we’re not going to fail the opportunity to just pause, look for opportunities for jobs for Tasmanians, and I know what Tasmanians will say in response. They will support this.”
Mr Ferguson said the government had full confidence in the board and senior management of TT-Line.
A spokesman for Mr Morrison
said the Prime Minister welcomed the state government’s “commitment to explore Australian-led build options”.
“While decisions around the replacement vessels are ultimately a matter for the Tasmanian government, the Commonwealth is willing to provide any relevant expertise to assist Tasmania with this task,” the spokesman said.
The chairman of local shipbuilder
Incat, Robert Clifford, said the company was looking forward to meeting the taskforce.
“With a highly skilled workforce of more than 600 people directly employed in Tasmania, and many thousands more supported through subcontract and supplier arrangements throughout the country, Incat are supportive of keeping Australian dollars within Australia and maintaining and indeed growing the employment opportunities for all Australians during these troubled times,” Mr Clifford said.
“Incat looks forward to meeting with the taskforce, and assisting the government and TT Line in achieving a successful outcome for all stakeholders.”
Labor infrastructure spokesman Shane Broad said the announcement was “extremely disappointing” and signalled that the new vessels would not be delivered until at least 2028.
“The original timeline for the new Spirit vessels has been blown out of the water, proving yet again that the government has no credibility when it comes to delivering major infrastructure projects,” he said.
“Tasmanian tourism operators now have nothing to look forward to until at least 2028 — and any hope for local manufacturing is at least six years and two elections away.
“This is a problem of the government’s own making — if they hadn’t already delayed the project four times, the new Spirits would be under construction right now.
“With this government’s record, how can Tasmanians have any confidence that the ships will be built anywhere, including in Australia?”