Spirit of Tasmania fiasco: New cost blowout for replacement project, Labor says
The cost of the replacement Spirit of Tasmania project has blown out further, according to the Opposition, with the state government accusing Labor of “misrepresenting” figures.
Tasmania
Don't miss out on the headlines from Tasmania. Followed categories will be added to My News.
The debacle surrounding the new Spirit of Tasmania ships has led to a further cost blowout of $12m, according to Labor leader Dean Winter, who has been accused by the Liberals of “misrepresenting” official government figures.
A report produced by the State Growth Department in October anticipated that the existing Spirit ferries would require $5m worth of maintenance while their delayed replacements, built at a cost of about $900m, remain in Europe.
The document also noted that additional financing costs of $7m had arisen from the deferral of the sale of Spirit of Tasmania II and III.
It comes after TT-Line paid $81m to bail out the troubled Finnish shipbuilder contracted to deliver the new ships, as well as an additional $13m due to increased steel costs.
The berth upgrade, the cost of which has ballooned by $285m, is not expected to be completed until February 2027 and the government will seek to lease the new Spirits in the interim.
Mr Winter said it would cost $1.2m a month to store the replacement ships in Scotland and the Tasmanian economy was losing $500m every year the delivery of the vessels was delayed.
The ferries were supposed to be completed and brought to Tasmania by 2021 but this never occurred.
“The ships should be brought home to Tasmania. They should be fitted out by Tasmanian contractors and accommodated by TasPorts at no cost to taxpayers,” Mr Winter said.
“The interest and debt burden now held by TT-Line is going to be very significant. I think the Premier needs to outline exactly how much debt is going to be held by this business.”
Transport Minister Eric Abetz said pile-driving had begun at Berth 3 and that extra Spirit sailings had been added to prune back waiting list bookings.
He said the Labor leader was “misrepresenting” the figures from the State Growth report.
“Dean Winter clearly has no idea of the additional costs incurred in sailing a ship to Tasmania for temporary berthing, only to sail it back should a leasing option eventuate. For Spirit IV to sail from Finland to Tasmania and back would cost in the order of millions,” he said.
“Further, berthing costs in Tasmania would be significantly more expensive than in Scotland due to differing crewing requirements, higher maintenance costs as a result of a warmer climate and higher insurance costs.”
Spirit of Tasmania V, one of the two new vessels, was battered in a wild storm in Finland earlier this month, breaking it loose from its berth and causing hull damage.
But Mr Abetz said TT-Line had advised him the damage sustained was not “significant”.
“This will no doubt be welcomed by all Tasmanians, except Dean Winter,” he said.
More Coverage
Originally published as Spirit of Tasmania fiasco: New cost blowout for replacement project, Labor says
Charges dropped against former King Island mayor Duncan McFie
A former King Island mayor, who had pleaded not guilty to possessing and producing child exploitation material, has walked free from court.
Justice comes at a price: Tassie spends more than the rest
Tasmania spends more per capita on police than any other state and is sending more people to jail despite fewer cases making it to court, national figures show.