Two new Spirit of Tasmania ferries are under construction in Finland

The budget for the two new Spirit of Tasmania ferries has been scrutinised in state parliament. TT-Line says the builds are experiencing severe difficulties due to several factors.

New Spirit of Tasmania vessel under construction at Finland's Rauma Marine Constructions. Picture: HYPE TV/ Spirit of Tasmania

The budget for Tasmania’s two new Bass Strait ferries has blown out by more than $80m, it has been revealed.

Two new Spirit of Tasmania vessels are currently under construction in Finland by ship builder RMC.

While the exact budget for the ship replacements has not been disclosed, TT-Line has previously told a government business enterprise hearings the ships would cost between $800m and $850m.

The government has committed $100m to go towards local contractors contributing to the ships’ fit out.

In state parliament on Wednesday, Labor questioned the government over suspected time and cost blowouts on the ferries.

Opposition leader Dean Winter asked several questions of Premier Jeremy Rockliff about the timing of the ships’ delivery, and whether any more money had been provided to RMC to complete the build.

“Can you confirm that not only are the ships further delayed, but your government or TT-Line has agreed to additional taxpayer funds being provided to the Finnish ship builder responsible for building the new vessels” Mr Winter said.

Question time in the Tasmanian Parliament, Premier Jeremy Rockliff. Picture: Chris Kidd

TT-Line has also previously predicted the first new ship would be in service by August, a timeline reiterated by the premier on Wednesday.

The second ship is due to be in service early next year.

After seeking advice, Mr Rockliff told parliament TT-Line had approved an additional payment to RMC of $81.6m.

“TT-Line’s board made a commercial decision to pay an additional amount to ensure the delivery of the new vessels, this decision was commercially based. I want to make it clear it was a decision for the board not the minister,” Mr Rockliff said.

“I am further advised the alternative was to potentially have to go back to market for a new ship that would have cost more and resulted in a significant additional delay.”

A spokesman for TT-Line said Treasury, the Liberal and Labor parties had been briefed during the election period caretaker mode that ship builder RMC “was experiencing severe difficulties in completing the two vessels for TT-Line due to several factors including material price increases, material availability and labour shortages.”

The new ships are expected to significantly boost Tasmania’s tourism sector, particularly in rural areas, with a 60 per cent increase in car spaces.

Originally published as Two new Spirit of Tasmania ferries are under construction in Finland