Michael Ferguson surrenders infrastructure as Liberals try to avoid no-confidence motion

Facing the potential ignominy of being sacked by parliament, Tasmania’s Treasurer has apologised for bungled ferry wharf upgrades and relinquished responsibility for infrastructure.

Michael Ferguson has handed in his infrastructure hard-hat, relinquishing the job over the bungling of ferry and wharf contracts. Picture: Stephanie Dalton

Tasmanian Treasurer Michael Ferguson has relinquished his infrastructure portfolio, as the state’s minority Liberal government attempts to head-off a no-confidence motion over bungled ferry and wharf projects.

Under threat of effectively being sacked by a hostile Assembly, Mr Ferguson on Monday handballed his Infrastructure Ministry to Premier Jeremy Rockliff, but will remain Deputy Premier and Treasurer.

The move forced a minor reshuffle and has added to perceptions of instability, coming as the Liberals attempt to shore-up vital confidence and supply deals with two former Lambie MPs.

It appears the resignation is an attempt to prevent a worse outcome for the government: parliament voting no-confidence in Mr Ferguson after sittings resume on September 10, two days before a difficult state budget.

The manoeuvre also appears designed to draw a line under criticism over the government’s extraordinary failure to provide adequate birthing facilities for two new Bass Strait ferries, despite years of notice of their arrival.

“I now believe this is the only way to end the blame game once and for all, and allow the right people to focus on the solution in a stable parliament,” Mr Ferguson said.

Mr Rockliff accepted the resignation, announcing he would take on personal responsibility for infrastructure, including the troubled ferry replacements and Devonport wharf upgrades.

Deputy Premier Michael Ferguson. Picture: Stephanie Dalton

“I understand and sincerely appreciate his (Mr Ferguson’s) desire to end the distraction associated with the current challenges involving portside infrastructure for the arrival of the new Spirits (ferries),” the Premier said.

A minor reshuffle will see Mr Ferguson gain a portfolio – Small Business and Consumer Affairs - replacing the one lost.

Existing minister Madeleine Ogilvie – once a Labor MP who turned independent and then Liberal – continues her assimilation by taking on the additional ministry of Science and Technology.

Mr Ferguson apologised “to all Tasmanians” for the delay in building an adequate new wharf for the two new Finnish-built ferries in time for their arrival, a blunder that means they will have to initially operate at well below capacity, amid plans to spend tens of millions on a temporary wharf fix.

Senator Jacqui Lambie, a fierce critic of Mr Ferguson whose demand for his resignation precipitated the demise of her state party, questioned why he remained Treasurer.

“Mr Ferguson’s rank incompetence surely suggests that he should also resign as Treasurer and move to the backbench, so that the Premier can put someone in the job who can hopefully do the job,” Senator Lambie said.

Labor leader Dean Winter said Mr Ferguson’s loss of the portfolio over the “biggest infrastructure stuff-up in Tasmania’s history” was “a stunning admission of failure”.

“But as Treasurer, Michael Ferguson remains as one of the shareholder ministers overseeing (ferry company) TT-Line and TasPorts,” Mr Winter said. “His resignation as Infrastructure Minister has done nothing to get this critical economic project back on track.

“And it begs the question - if his Spirits (ferries) stuff up is justification for losing his infrastructure portfolio, shouldn’t the budget disaster he’s created see him held accountable in his Treasury portfolio too?”

State Treasury this month advised Tasmania’s budget is on track to report a $1.5 billion deficit for 2023-24, up from $285m in 2022-23, while net debt had almost doubled from $1.8bn in 2022-23 to $3.5bn.