Turmoil, resignation as Spirit of Tasmania ferries replacement project hits stormy seas
Tasmania’s biggest infrastructure project in recent history – two new Bass Strait passenger ferries – is in turmoil, along with its minority government, with a ferry boss resigning and agencies warring with ministers and each other.
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Tasmania’s biggest infrastructure project in recent history – two new Bass Strait passenger ferries – is in turmoil, along with its minority government, with a ferry boss sacked and agencies warring with ministers and each other.
Chairman of the state-owned TT-Line ferry company, Michael Grainger, was forced by the government to quit overnight, hours after promising to “set the record straight” on blame for alleged project bungling.
The dramatic departure follows a series of backwards steps, cost-blowouts, controversial payments and delays to the $1 billion-plus ferry project and associated Devonport wharf infrastructure.
TasPorts, the state-owned port authority, and Treasurer Michael Ferguson, had blamed TT-Line for the failure to provide adequate new port facilities for the two new $900m-plus vessels, despite having years to prepare for their arrival.
Mr Grainger on Wednesday night said TT-Line board “stood by” its decisions and would provide “factually correct evidence” before a parliamentary inquiry. Within hours, he was no longer chairman.
“Effectively the government just sacked their own chair for threatening to tell the truth,” said Labor Leader Dean Winter, who has labelled the fiasco “the biggest infrastructure stuff up in Tasmania’s history”.
Mr Ferguson and Transport Minister Eric Abetz said they sought and accepted Mr Grainger’s resignation after it “became clear” the relationship between the government and chair had become “untenable”.
It appears the government lost patience with TT-Line after blowouts, cancelled contracts and an $80m-plus Tasmanian taxpayer-funded bailout of the Finnish ferry builder.
The government also appears to have sided with TasPorts over blame for the failure to deliver the new wharf, which means the new ferries will have to operate below capacity for at least the first 12 months.
Mr Ferguson on Thursday said the government was “very dissatisfied with those failures”, particularly TT-Line’s decision to cancel the wharf contract in March while the government was in caretaker mode, without telling it.
“I was blindsided and completely unaware during the caretaker period … that TT-Line had rescinded or cancelled its preferred tenderer … to build the portside infrastructure,” he told ABC’s Leon Compton program. “We didn’t know. We weren’t told. And that’s unacceptable.”
Mr Abetz suggested the last straw was Mr Grainger’s public vow to “set the record straight” just hours after Mr Rockliff had demanded all involved stop “excuses” and “the blame game” and work together.
“Unfortunately, about three hours later, a statement was put out (by Mr Grainger) re-engaging in the blame game,” Mr Abetz said.
Labor and the Greens, however, said ministers must take responsibility for the chaos. “Michael Ferguson kept information about both the cost overruns for the new Spirits and the delays to the wharf upgrades secret from the public for months, and seemingly had no plans to come clean,” said Greens infrastructure spokeswoman Helen Burnett.
“That behaviour doesn’t meet the standard Tasmanians expect from a minister.”
The government has appointed two external infrastructure experts to bring the wharf upgrades back on track, and issued ministerial directives to both TT-Line and TasPorts to ensure a greater role for the Department of State Growth.
Those actions appear to suggest the government lacks confidence in the ability of the two government business enterprises to carry out major projects.
Mr Rockliff said the situation was “frankly not acceptable”. “I want solutions and I want them now,” he said.
However, the government, ultimately responsible for the enterprises, has had since 2017 to ensure adequate wharf upgrades were put in place.
The first of the new Spirit of Tasmanian ferries is due to be in service by 2025, but the new, deeper wharf will not be ready until 2026, forcing them to initially operate with lighter loads from an upgraded existing wharf.
Labor says the ferries are five years late, $500m over budget and unable to operate at full capacity for an unknown period.
Mr Grainger has so far not responded to requests for comment.
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