Build it in the spirit of Tasmania
Give local manufacturing and jobs every chance, explains Michael Ferguson
AS we recover and rebuild from the economic and social impacts of COVID-19, we have an opportunity to back Tasmanian and Australian businesses and jobs by exploring local procurement and manufacturing options for TT-Line’s replacement vessels.
During our economic recovery, it is absolutely vital the Tasmanian Government continues to make decisions that are in the best interest of our state and present the greatest local opportunity.
We are faced with a choice, to invest about $850 million offshore in Europe, or to explore options for local businesses and jobs to benefit, providing an economic boost at the time we need it most.
Rather than stimulating thousands of jobs in Finland and value-adding across the Finnish supply chain, we want to look at opportunities to do that here.
It is the government’s expectation we can do this without compromising our ability to meet passenger and freight demands in a proactive and responsible way over the coming three years.
Given significant volatility in foreign exchange markets, there are currency savings from local procurement, which provides for savings and more funding for a local build.
Unashamedly, we are going to explore fully the option for this significant investment and the jobs it will underpin to be spent in Australia rather than Europe with a particular focus on Tasmanian manufacturers.
It is expected the project could create more than 1500 direct and indirect jobs, and we want to see those jobs supported here at home.
Tasmania is renowned for its innovation, and this decision is a potential game changer for our burgeoning manufacturing sector. We want to ensure we fully explore all local and national options and possibilities before we return to the market.
A taskforce which includes representation from Treasury, State Growth, TT-Line and the Australian government identify local procurement, purchasing and manufacturing options. The taskforce will report back to government in three to six months with a recommended way forward.
The current Spirit of Tasmania vessels are already emissions compliant and can continue to operate safely and efficiently, and meet demand well into the future.
We will work closely with TT-Line to consider how Tasmania can maximise the economic and social outcomes during building and after delivery of the new vessels.
TT-Line has enjoyed phenomenal success under this government, and we are excited about delivering these new vessels. The government will continue to deliver our plan for increased passenger numbers and lower fares.
The Spirit of Tasmania service has a bright future, with TT-Line announcing this year it will move its Victorian port to a more suitable site.
The decision to move to Corio Quay, north of Geelong, will future-proof the service and maximise the freight and tourism opportunities of the new larger vessels.
Our tourism industry is hurting right now, but it is important we are ready to welcome visitors back to Tasmania as we recover and rebuild post-COVID-19.
We remain committed to building two new ships that can meet future freight and passenger requirements within our 2028 time frame.