Infrastructure Minister has held talks with Font PR and Incat

Two Australian shipbuilders are courting Tasmania’s Infrastructure Minister, as the government waits on a task force to deliver a report on the feasibility of building two new Bass Strait ferries onshore. LATEST >>

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TASMANIA’S Infrastructure Minister has had talks with two Australian shipbuilders while a task force continues to work on a report which will provide costed options for two new Bass Strait ferries to the government.

Infrastructure Minister Michael Ferguson faced a barrage of questions in Budget Estimates on Tuesday about the decision to end a contract with a Finnish shipbuilder to build the two ships and establish a task force to explore local options.

That Finnish contract followed another failed deal with German shipbuilder.

Mr Ferguson said he had met with Font PR, which has Australian shipbuilder Austal as a client, and with Hobart business Incat as he waited for the report to be handed to the government in the New Year.

“I have actively encouraged companies to approach the task force,” he said.

The decision to scrap the second contract and pause the process for six months awaiting the task force report was this week slammed by respected economist Saul Eslake saying the delay could cost the government $350m a year.

Saul Eslake and Shane Broad discuss the Governments changes to TT-line replacement ships. Picture: RICHARD JUPE

Mr Ferguson said TT-Line’s new two ferries would still be delivered within eight years and Mr Eslake’s report was outdated and based on rumour and assumption.

Mr Ferguson acknowledged the two monohulls might still need to be built overseas.

“It is not out of the question it may be an overseas build but it could be an Australian build,” Mr Ferguson said.

“I will not rush into a contract. I am agnostic on this and will share as much advice as allowed to with the Tasmanian community.”

But he said some fit outs including the use of Tasmanian woods and mattresses would be done locally.

The taskforce’s report to the state government in the new year and it would list a range of costed options.

Michael Ferguson enters Parliament. Premier Peter Gutwein delivers the budge speech in Parliament. Picture: RICHARD JUPE

It would not be recommending what option the government take.

Mr Ferguson said he would then “share what the government could” with the Tasmanian people.

Labor’s Shane Broad said the $350m loss figure was based on tourism forecasts and the delay in locking in a contract would cost jobs in that sector.

“New ships sooner would generate a sense of excitement and uplift in passengers,” Mr Broad said.

Mr Ferguson said it appeared Mr Eslake have erroneously assumed the additional capacity will be filled immediately on beginning the service,” Mr Ferguson said.

“Why are you opposing a six month pause to see if the ferries can be built in Australia.”