TT-Line CEO Bernard Dwyer announces resignation just weeks after chairman’s exit

Under fire TT-Line fronted a public committee the same day as the resignation of CEO and managing director Bernard Dwyer was announced. Here’s the latest.

HOBART, Tasmania. Friday 28th June 2024. CEO of TT Lines Bernard Dwyer at a public inquiry into ferries which was held at Parliament House. Picture: Linda Higginson

TT-Line chief executive Bernard Dwyer has announced his resignation just weeks after the company’s chairman stepped down amid a public disagreement with the state government over delays and cost blowouts associated with the new Spirit of Tasmania ferries.

Interim TT-Line chairman Damian Bugg told the state parliament’s Public Accounts Committee (PAC) on Monday that Mr Dwyer – who has been CEO for a decade – had informed him on Saturday of his resignation, which will take effect upon the expiry of his contract on November 3.

Mr Dwyer had been due to appear before the PAC’s inquiry into the Spirit of Tasmania project on Monday but was conspicuously absent.

Concept design of new Spirit of Tasmania vessel currently under construction at Rauma Marine Constructions in Finland. Picture: Spirit of Tasmania

“It was clear that the pressures that he’s been operating under … are such that he ought not be here for his own wellbeing,” Mr Bugg said.

It comes as TT-Line and the government face intense scrutiny over the bungled delivery of the new Spirit vessels, with the cost of port upgrades at Devonport having increased from $90m to $375m.

The government pledged in 2017 that it would deliver the ferries “two years ahead of schedule” by 2021 – but this never occurred. The first vessel is expected to arrive in Tasmania later this year, and the second in the first quarter of 2025.

Former TT-Line chairman Mike Grainger – who was in the audience at the hearing on Monday – was asked to resign by the government after appearing to dispute evidence given to the PAC by Infrastructure Minister Michael Ferguson and TasPorts last month.

Two weeks later, Mr Ferguson himself resigned from the infrastructure portfolio, apologising for the Spirit of Tasmania “disappointment” but blaming TT-Line for the hold-up.

Spirit of Tasmania CEO Bernard Dwyer has announced his resignation. Picture: Supplied/TT-Line

In a statement issued on Monday morning, Mr Bugg said Mr Dwyer would remain CEO and managing director until the end of his term.

“His positive approach, energy and will to achieve the best for Tasmania will be sorely missed,” he said.

Premier Jeremy Rockliff said Mr Dwyer had stepped down “for his own reasons”.

“I want to thank Mr Dwyer for his significant contribution to TT-Line over a long period of time and I wish him well,” he said.

The Premier acknowledged that the project to replace the Spirits had been “challenging” and not “good enough”.

“We’ve had to, if you like, wrest control of the project to get it back on track,” he said.

The government recently appointed Ben Moloney, the project director overseeing construction of the new Bridgewater Bridge, to work with TT-Line and TasPorts to ensure the replacement ferries and associated berthing infrastructure could be delivered.

The new Spirits have room for 1800 passengers and 4098-lane metres capacity for vehicles but will operate at the 1400 passenger and 1675-lane metre capacity of the old vessels until the delayed berth 3 upgrades at Devonport are complete, which won’t be until January 2026.

TT-Line made a payment of $13m to the Finnish shipbuilder tasked with delivering the new ships, Rauma Marine Constructions (RMC), in April 2022, which was additional to an existing fixed-price contract.

Deputy Labor Leader Anita Dow accused Mr Ferguson of misleading parliament because he appeared to tell a government business enterprise (GBE) hearing eight months later that the price of the new ships hadn’t changed.

Acting Chairperson of TT-Line Dr Damian Bugg speaks at the Parliamentary Inquiry into the TT-Line Spirits project in Hobart on Monday 9th September 2024. Picture: Linda Higginson

“The price of the contract had changed, the minister had been made aware of that fact in writing, yet he told the parliamentary committee it had not,” she said.

A government spokesman, however, rejected the Opposition’s assertion, saying “variations commonly occur to fixed-price contracts in accordance with the terms of that contract”.

“When speaking at GBE scrutiny on 1 December, 2022, [Mr Ferguson] was repeating the evidence provided earlier in the hearing by the TT-Line CEO,” he said.

TT-Line was embroiled in controversy this year when it was revealed the company had walked away from its preferred tenderer for the port upgrades in Devonport, appointing a new tenderer in August. Mr Ferguson has said he wasn’t informed of this decision.

Originally published as TT-Line CEO Bernard Dwyer announces resignation just weeks after chairman’s exit