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Macquarie Wharf redevelopment: Plibersek’s ultimatum to Rockliff over Antarctic infrastructure

Time for the Premier to ‘pick up the phone’, Greater Hobart mayors are urging to avert a stalemate with Canberra over the redevelopment of the ageing Macquarie Wharf. The latest.

Tanya Plibersek MP, Minister for Environment and Water, has written to Premier Jeremy Rockliff regarding the “stalled” redevelopment of Macquarie Wharf. Picture: Keryn Stevens
Tanya Plibersek MP, Minister for Environment and Water, has written to Premier Jeremy Rockliff regarding the “stalled” redevelopment of Macquarie Wharf. Picture: Keryn Stevens

The four Greater Hobart mayors are calling on Premier Jeremy Rockliff to “pick up the phone today” and avert “disaster” by resolving his government’s stalemate with Canberra over the redevelopment of the ageing Macquarie Wharf.

In a joint statement issued on Thursday, Hobart Lord Mayor Anna Reynolds, Clarence Mayor Brendan Blomeley, Kingborough Acting Mayor Clare Glade-Wright, and Glenorchy Acting Mayor Sue Hickey said the negotiations between Hobart and Canberra had been “moving at a glacial pace” for years and it was “well past time for action and certainty”.

Lord Mayor of Hobart Anna Reynolds. Picture: Linda Higginson
Lord Mayor of Hobart Anna Reynolds. Picture: Linda Higginson
Clarence Mayor Brendan Blomeley. Picture: Chris Kidd
Clarence Mayor Brendan Blomeley. Picture: Chris Kidd

“This is a significant economic threat to Hobart and Tasmania and we urge the Premier to pick up the phone today and find a solution,” they said.

“It is critical that we work to maintain Greater Hobart as a world-class science and research city, ensuring it remains the focal point for international, national, and private Antarctic and science research organisations and institutes.”

The Macquarie Wharf upgrade would provide for a “multi-user” Antarctic precinct and a long-term berthing option for the RSV Nuyina icebreaker, which is currently forced to refuel in Burnie at a cost of about $900,000 a year after TasPorts ruled the ship could not safely travel under the Tasman Bridge to Selfs Point.

Acting Glenorchy mayor Sue Hickey. Picture: Nikki Davis-Jones
Acting Glenorchy mayor Sue Hickey. Picture: Nikki Davis-Jones
Acting Kingborough mayor Clare Glade. Picture: Chris Kidd
Acting Kingborough mayor Clare Glade. Picture: Chris Kidd

The Commonwealth’s commitment of $240m for the long-awaited redevelopment of Macquarie Point, including the proposed stadium, is conditional on the Rockliff government upgrading Macquarie Wharf 6 “on reasonable commercial terms acceptable to the Australian government”.

The mayors said “significant concerns” remained regarding the current condition of the wharf and the impact this had on the ongoing operations of the Antarctic sector.

“These concerns highlight both the importance and urgency of finalising the commercial arrangements between the state and Commonwealth governments to fund the proposed upgrades,” they said.

TasPorts boss blasts AAD, denies ‘price-gouging’ accusations

EARLIER: TasPorts CEO Anthony Donald has sensationally blasted the Australian Antarctic Division (AAD) for its “failure to plan ahead” for much-needed upgrades to Macquarie Wharf and strongly denied claims that the port authority was attempting to “price-gouge” the federal government in negotiations over the redevelopment.

In a statement released on Thursday afternoon, Mr Donald hit out at the federal government after a letter from Environment and Water Minister Tanya Plibersek to Premier Jeremy Rockliff was leaked, laying bare an impasse in the Macquarie Wharf 6 upgrade negotiations.

Ms Plibersek has said TasPorts is asking the Commonwealth for $515m over 30 years for the redevelopment, which was “more than 14 times more” than what the federal government “currently pays”.

TasPorts CEO Anthony Donald during GBE hearings. Picture: Nikki Davis-Jones
TasPorts CEO Anthony Donald during GBE hearings. Picture: Nikki Davis-Jones

But Mr Donald said this was a “misleading” assessment of the situation because the AAD was currently paying for a wharf that was “end of life”, not a “fit-for-purpose bespoke design with a dedicated facility”.

“The costs are reflective of the detailed design works, which are specific and a bespoke request by the AAD. The level of investment is reflective of the infrastructure requirements,” he said.

“We are not simply talking about reparation of the wharf structure but a bespoke design that is very specific to their needs.”

Mr Donald said the provision of a lay-up wharf at Macquarie Wharf 6 was “in response to AAD’s urgent request for support given their failure to plan ahead”.

“They have invested in a new, larger state-of-the-art vessel [RSV Nuyina] without planning for where it could be berthed,” he said.

“We have been very clear about our concerns for the interim wharf asset, which cannot continue to safely provide an interim solution given its deteriorating condition.”

TasPorts, a state-owned company, has a project team in place that is ready to begin the redevelopment works when commercial terms are finalised, Mr Donald said.

“It would be a far better outcome for the project if negotiations could continue with accurate reflections of the requirements, knowledge of federal budgetary position, and without leaks that contain misleading and inaccurate sums,” he said.

Antarctic gateway future ‘at risk’ amid ‘price-gouging’ accusations

EARLIER: TasPorts has been accused of “price-gouging” the federal government amid negotiations over vital upgrades to Macquarie Wharf, throwing into jeopardy Hobart’s enviable position as the gateway to Antarctica.

In a letter to Premier Jeremy Rockliff, obtained by the Mercury, federal Environment and Water Minister Tanya Plibersek said TasPorts was asking the Commonwealth for $515m over 30 years for the redevelopment of Macquarie Wharf 6, which was “more than 14 times more” what the federal government “currently pays”.

She said the planned upgrade was a “fundamental requirement” if the city was to “remain the home port” of Australia’s flagship icebreaker RSV Nuyina.

During Question Time in state parliament on Thursday, Opposition Leader Dean Winter said the future of the Antarctic sector in Tasmania, which is worth more than $180m to the state and employs about 1000 people, was “at risk”.

Dean Winter Labor leader with Anita Dow Labor deputy leader. Parliament question time. Picture: Chris Kidd
Dean Winter Labor leader with Anita Dow Labor deputy leader. Parliament question time. Picture: Chris Kidd

“Your failure to deliver the upgrades promised at Macquarie Wharf and TasPorts’ attempts to price-gouge the [Australian Antarctic Division] have seen negotiations over Hobart’s future as the home of Antarctic research completely break down,” he said.

Mr Rockliff said the Liberal government would “always be standing up for Tasmania against those in Canberra that want to dud us time and time again”.

“We are working through these matters. Clearly the commitment that was made by the minister yesterday is to Hobart being the Antarctic base,” he said.

According to the Premier, the state government recognised “the value of Antarctica”, as well as the importance of the redevelopment of Wharf 6.

“We will get this job done, of course, by working … through this very sensibly,” he told parliament.

“TasPorts have, of course, made every opportunity to ensure that Tasmania gets a good deal when it comes to the negotiations between Canberra and the Antarctic [Division].”

Senator Jonathon Duniam. Picture: Nikki Davis-Jones
Senator Jonathon Duniam. Picture: Nikki Davis-Jones
Premier Jeremy Rockliff. Parliament Question Time. Picture: Chris Kidd
Premier Jeremy Rockliff. Parliament Question Time. Picture: Chris Kidd

Tasmanian Liberal senator and Coalition spokesman for the environment, fisheries and forestry, Jonathon Duniam, said Ms Plibersek was “not being genuine in her claims that she wants to keep Tasmania as the gateway to Antarctica”.

“While there is no justification for any government agency, state or federal, to mishandle something so important, there is absolutely no excuse for a federal minister to so blatantly put at risk something so important to our state and the city of Hobart,” he said.

Independent Clark MP Andrew Wilkie said it would be “devastating news” if Hobart’s status as Australia’s gateway to the Antarctic was ripped away.

“Australia’s Antarctic Program is crucial to Tasmania and the basis for many hundreds of science and other jobs,” he said.

“To lose all that because of state government incompetence and TasPorts’ attempt at price-gouging would be a shocking failure of governance, a dreadful blow to the Tasmanian economy, and entirely unforgivable.”

TasPorts has been contacted for comment.

Antarctic gateway status under threat in Mac Point deal twist

INITIAL: Hobart could be at risk of losing its status as the gateway to Antarctica if the state government and Canberra cannot reach a commercial agreement on the “stalled” redevelopment of crucial wharf infrastructure at Macquarie Point.

Federal Environment and Water Minister Tanya Plibersek says the proposed upgrade of Macquarie Wharf 6 is a “fundamental requirement” if the state capital is to “remain the home port” of Australia’s flagship $528m icebreaker RSV Nuyina.

In a letter to Premier Jeremy Rockliff, obtained by the Mercury, Ms Plibersek said the Albanese government was “increasingly concerned” that negotiations relating to the redevelopment were “not progressing in a satisfactory manner”.

“As you are aware the development of Macquarie Wharf 6, including supporting infrastructure and a long-term refuelling capability, is a fundamental requirement if Hobart is to remain the home port of the RSV Nuyina,” she wrote.

A preliminary design concept of stage one of the TasPorts master plan for the Macquarie wharves 4, 5 and 6.
A preliminary design concept of stage one of the TasPorts master plan for the Macquarie wharves 4, 5 and 6.

“The Commonwealth acknowledges TasPorts’ commercial imperative, however, the exorbitant cost of the proposed redevelopment [is] estimated to exceed $515m over 30 years.

“This is more than 14 times more than the Commonwealth currently pays and there have been no costings provided to back up this request. The Australian government cannot accept that these are reasonable commercial terms.”

While Ms Plibersek has told Mr Rockliff that she is “committed to Hobart remaining the gateway to the Antarctic”, she said state government agencies appear “determined to stand in the way of securing this development”.

“Given the protracted nature of the negotiations to date, the Commonwealth requires a revised pathway to retain the Port of Hobart as the home port of the Australian Antarctic Program,” she said.

“As an agreement with TasPorts is not currently possible, I seek your intervention and ongoing support to ensure that we can finalise negotiations on long-term arrangements for RSV Nuyina and the Australian Antarctic Program so they continue to be based in Hobart.”

RSV Nuyina berthed at Hobart. Picture: Chris Kidd
RSV Nuyina berthed at Hobart. Picture: Chris Kidd

Mr Rockliff said TasPorts, which is seeking funding for the wharf redevelopment, would “always ensure they secure the best possible deal for Tasmanians” when negotiating with Canberra and would continue to work with the federal government to reach a commercial agreement.

“I welcome Minister Plibersek’s commitment to Hobart remaining the gateway to the Antarctic and we will continue to be vigorous in ensuring Ms Plibersek and the federal Labor government keeps their word,” he said.

Premier Jeremy Rockliff at Princes Park, Hobart. Picture: Chris Kidd
Premier Jeremy Rockliff at Princes Park, Hobart. Picture: Chris Kidd

The redevelopment would provide for a “multi-user” Antarctic precinct and a long-term berthing option for the Nuyina, which is currently forced to refuel in Burnie at a cost of about $900,000 a year after TasPorts ruled the ship could not safely travel under the Tasman Bridge to Selfs Point.

The Commonwealth’s commitment of $240m for the long-awaited redevelopment of Macquarie Point, including the proposed stadium, is conditional on the Rockliff government upgrading Macquarie Wharf 6 “on reasonable commercial terms acceptable to the Australian government”.

robert.inglis@news.com.au

Originally published as Macquarie Wharf redevelopment: Plibersek’s ultimatum to Rockliff over Antarctic infrastructure

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Original URL: https://www.adelaidenow.com.au/news/tasmania/macquarie-wharf-redevelopment-pliberseks-ultimatum-to-rockliff-over-antarctic-infrastructure/news-story/3903e31a3723bb3e1f82f5b8f020f078