Tasmanian Treasurer Michael Ferguson quits cabinet ahead of no-confidence motion

Tasmanian deputy premier Michael Ferguson faced criticism of his handling of a bungled Devonport wharf project and delayed, over-budget acquisition of new Spirit of Tasmania ferries.

Michael Ferguson has quit as Tasmania’s Treasurer. Picture: Nikki Davis-Jones

Tasmanian deputy premier and Treasurer, Michael Ferguson, has resigned to head-off a no-confidence motion.

Mr Ferguson on Monday said he “could count” and the numbers were against him in the House of Assembly.

He said he was resigning to sit on the backbench to save the parliament time and to ensure the budget he handed down just weeks ago, was not delayed in its passage.

Premier Jeremy Rockliff earlier on Monday effectively cut Mr Ferguson loose, indicating he would resign if, as was expected, MPs voted no confidence in him on Tuesday.

Mr Rockliff defended his Treasurer as “diligent”.

The vote was in response to Mr Ferguson’s handling of a bungled Devonport wharf project and delayed, over-budget acquisition of new Spirit of Tasmania ferries.

Premier Jeremy Rockliff, with his likely soon-to-be-former treasurer, Michael Ferguson, behind him, in happier times. Picture: Nikki Davis-Jones

The stance was a contrast to the approach advocated by senior minister Eric Abetz, who on Sunday urged Mr Ferguson to refuse to resign in the face of a successful no confidence motion.

“Even if a motion of no-confidence were to be passed in him … there will be no need for Mr Ferguson to resign and I would encourage him not to resign,” Mr Abetz said.

Labor appeared to have the required 18 votes for a majority of MPs to express no confidence in Mr Ferguson, 50, ending his decade in senior frontbench roles and plunging the Liberal minority government into turmoil.

Opposition leader Dean Winter said Mr Rockliff’s refusal to sack Mr Ferguson was “a failure of leadership” and Labor would “do his job for him” by moving no confidence on Tuesday.

 “Minister Ferguson is responsible for the biggest infrastructure stuff up in Tasmanian history,” Mr Winter said. “The new Spirits project is five years delayed, $500 million over budget – and when the ships eventually arrive, they will have nowhere to berth.”

Mr Ferguson, who declined to comment, has taken some responsibility for the ferries fiasco but has also blamed state-owned businesses, particularly ferry operator TT-Line.

It is unclear if Mr Ferguson, an MP since 2010 and deputy premier since 2022, will quit parliament if dumped to the backbench as expected.

The Premier defended his Treasurer, who delivered his third budget on September 12 but appears certain to watch its passage from the backbench or further afield.

Mr Rockliff said he had “full confidence” in Mr Ferguson and that he had already paid a price for the ferries “situation” by recently resigning as Infrastructure Minister.

He had not asked Mr Ferguson – who The Australian revealed on Friday was a former bankrupt – to resign as Treasurer.

However, he had checked his wellbeing and believed he was the victim of a “consistent smear campaign”.

“Minister Ferguson is only human – as people we feel the effects of being attacked,” Mr Rockliff said. “I feel for Minister Ferguson’s wellbeing.”

Mr Rockliff’s decision to accept the no confidence motion if passed may further alienate him from some Liberal conservatives, who include Mr Ferguson and Mr Abetz.

The Premier, a party moderate, may decide to take responsibility for Treasury himself in any reshuffle or to elevate an existing minister.

Promoting a conservative, such as Mr Abetz, a former senator and Howard era federal minister, or a younger conservative, such as Felix Ellis, could aid party unity. However, Mr Abetz and Mr Rockliff have clashed on several occasions.

Mr Winter said he had received “clear advice” the no confidence motion – so far publicly supported by Labor, the Greens and crossbenchers Kristie Johnston and David O’Byrne – would not impact passage of the budget.

Labor leader Dean Winter says his MPs and the crossbench will “do the Premier’s job for him” in sacking the state’s Treasurer. Picture: Stephanie Dalton

Mr Rockliff also reassured Tasmanians of passage of the budget, which controversially increases state debt – non-existent for much of the 2010s – from $3.5bn in 2023-24 to $8.59bn in 2027-28.

A poll released on Monday shows public concern about the debt – labelled by some economists as worse than Victoria’s on key measures – has further eroded support for the minority Liberal government.

The EMRS poll found 62 per cent dissatisfaction with the burgeoning debt, while “debt” was the word most commonly nominated when respondents were asked to describe the budget.

Support for the Liberals has slumped since the 36 per cent recorded at the March 23 state election. EMRS has that support at just 28 per cent, to Labor’s 26, Greens 17, independents 15 and the Jacqui Lambie Network 5.