Treasurer vote threat after scathing evidence

A former ferry company boss says he was forced out of his job for wanting to tell the truth about what some are calling the biggest infrastructure stuff-up in Tasmanian history.

Former TT-Line chair Mike Grainger at Parliament House in Hobart. Picture: Nikki Davis-Jones

You can now listen to The Australian's articles. Give us your feedback.

You can now listen to The Australian's articles.

Tasmania’s embattled Treasurer, Michael Ferguson, faces a potential no-confidence motion after scathing evidence from a dumped ferries boss over a bungled ferries project.

The Labor opposition on Tuesday flagged the move, which if backed by balance of power independents could see Mr Ferguson, who is also Deputy Premier, lose his key portfolio.

Mike Grainger, asked to resign as chairman of the state-owned TT-Line in August, on Tuesday told a parliamentary inquiry he was effectively forced out to stop him “telling the truth” and “embarrassing” the government.

His sudden departure followed a public blame game between TT-Line, which runs the Spirit of Tasmania ferries, state-owned TasPorts, and ministers over cost and time blowouts for the purchase of two new ferries, and the failure to provide them an adequate wharf.

Mr Grainger told state parliament’s public accounts committee he was given hours to resign or be sacked after issuing a press release promising to “set the record straight” to the PAC on criticisms of TT-Line.

“It seems bizarre to me that I was being blamed by the shareholder ministers for wanting to tell the truth,” Mr Grainger said in sworn evidence. “I was obviously being blamed for wishing to set the record straight at the risk of embarrassing the government.

“The reality is that as chairman of the board, I always kept our shareholder ministers informed of everything the board agreed or disagreed to, via regular, at least monthly, ministerial briefings.

“In my time as a director and chairman of the board, I worked with six premiers and 10 government ministers from both sides of parliament. I have never witnessed such an appalling lack of support from government as experienced over the previous 12 months.”

Mr Grainger gave evidence about Mr Ferguson’s knowledge of the timing around various problems and cost blowouts in the purchase of the two new Finnish-made ferries, and the bungled build of the new Devonport wharf.

When quizzed in parliament in May about when he first became aware Finnish shipbuilder RMC was in significant financial difficulties, Mr Ferguson initially suggested it was in February but later said it was in December 2023.

Mr Grainger – backed by later evidence from TT-Line chief executive Bernard Dwyer – told the PAC he had informed Mr Ferguson of RMC’s serious financial troubles in October 2023.

Labor Opposition Leader Dean Winter said this was just one instance of many where Mr Grainger’s testimony showed Mr Ferguson had misled parliament and mishandled the state’s biggest infrastructure project.

“The evidence … demonstrates that Mr Ferguson was fully aware of and responsible for the biggest infrastructure stuff-up in Tasmanian history, then he misled parliament about his knowledge and involvement in it,” Mr Winter said.

 “The Premier must act on minister Ferguson.

“If he doesn’t, the parliament will have a very big decision to make next week.”

A government spokesman said none of the evidence “refutes any previous comments made by government ministers”.

 “The government was not provided with formal advice or confirmation in relation to revised time­frames until after the caretaker period, during which time TT-Line rescinded its preferred (wharf) tenderer, without advising the government,” he said.

A no-confidence motion next week would swing on five independents, who have flagged they are keeping their options open.