Labor asks what will happen to $80M Spirit of Tasmania replacement fund

Tens of millions of dollars set aside for two replacement Spirit of Tasmania vessels could be used to refurbish the current ships says Labor, but the cash, which was earmarked to kickstart the building process, is “locked by legislation”. Latest >>

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LABOR wants to know what is going to happen to the $80 million set aside to help fund the Spirit of Tasmania replacement vessels now the project has gone back to the drawing board.

The Liberals took two $40 million special dividends from TT-Line in 2016/17 and 2018/19 to establish a specific fund to be “locked by legislation”.

Deputy Premier Jeremy Rockliff said on Wednesday the $850 million project was a huge opportunity for the local manufacturing industry.

Labor’s Treasury spokesman David O’Byrne said he hoped the Spirits would be up to the task until their replacements arrived — perhaps by 2028.

David O'Byrne. Picture: CHRIS KIDD

“The government originally said it would be transferring $80 million from TT-Line’s books to government books to set up a fund to build the new vessels,” he said.

“Now, with the replacement of the Spirits back to square one, Peter Gutwein must explain what will happen to the Ship Replacement Fund money, in addition to the money they have forecast to rip out of the TT-Line GBE’s in the state budget.

“Will the government have to transfer the funds back to TT-Line so they can refurbish the existing vessels and keep them fit for purpose until the new ones are built?”

Mr O’Byrne said the decision was TT-Line Board, is effectively a vote of no confidence in the TT-Line board and Infrastructure Minister Michael Ferguson.

Mr Rockliff said he wanted people to be positive about the local build.

“We have to think outside the square given the massive COVID-19 disruption, there are a lot of people right across this country rethinking ways of how we can locally manufacture products,” he said.

“That might be small products that we utilise in our daily lives, or a considerable investment of almost a billion dollars in terms of the new ferries.

“And, you know, I won’t listen to any negativity that people say well you know we don’t have the capability.

“We’ll set up a task force, of course, which has been announced yesterday, across federal and state government, TT Line and the industry expertise and we will work through this issue and we will deliver the ships and they will be locally, manufactured.

“Tasmania, Australia, we need to absolutely think outside the square in terms of how we can deliver such crucial infrastructure investment locally.”

The Spirit of Tasmania ferry. Picture: WILLIAM WEST/AFP

Tasmanian Minerals, Manufacturing and Energy Council congratulated the government for “being bold and turning the TT-Line vessel replacement program into a golden opportunity for Tasmanian and interstate manufacturers”.

South Australian Premier Steven Marshall said his state was keen to help out.

“We look forward to seeing a full proposal on the scope and scale of this project,” he said.

“We have the critical infrastructure here in South Australia to deliver major projects in this space. We’d be happy to sit down with the key parties to determine what role we could play.”

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