NewsBite

Ferry to nowhere running up a $380k a month wages bill

The new Spirit of Tasmania ferry caught in limbo has a growing wage bill for six crew members to keep things ship shape while tied to a Scottish dock. Here’s why the govt isn’t concerned.

The newly built Spirit of Tasmania IV passenger ferry arrives at Port of Leith to be Mothballed for up to two years.
The newly built Spirit of Tasmania IV passenger ferry arrives at Port of Leith to be Mothballed for up to two years.

TT-Line is paying $380,000 a month to crew a ferry going nowhere.

Figures released by the government on Thursday reveal the mounting cost of delays in the state’s biggest-ever infrastructure fiasco.

If the Spirit of Tasmania IV sits in the Scottish Port of Leigh for two years as expected, the six crew on board could cost up to $9m — or an average of $1.5m each — without having put to sea. And a second ferry is on the way.

The cost is on top of $190,000 a month which is currently being paid in berthing costs.

Earlier this month Minister for Transport Eric Abetz said Labor was running a “fear campaign” by claiming the ships would cost $280,000 a month to berth in Scotland.

Minister Eric Abetz.
Minister Eric Abetz.

The actual figure for the first month — including wages — is upwards of $570,000.

The new Spirit ferry is sitting idle because of the failure to have berthing infrastructure at Devonport ready in time.

It will be joined by its sister ship Spirit of Tasmania V in the middle of next year.

The figures were revealed in a Regular Spirit Replacement Update released by the government on Thursday.

The update noted that the ferries would cost more if they were actually moving and taking passengers, vehicles and freight on board.

The crew are required to be aboard by international maritime regulations and to ensure the ship’s engines and other systems are maintained in working order.

“Crewing costs would be incurred regardless of where the vessel was located and are currently estimated at $380,000 per month,” the update noted.

The newly built Spirit of Tasmania IV passenger ferry arrives at Port of Leith to be. Mothballed for up to two years. Picture: Iain Masterton/Alamy Live News.
The newly built Spirit of Tasmania IV passenger ferry arrives at Port of Leith to be. Mothballed for up to two years. Picture: Iain Masterton/Alamy Live News.

“The Tasmanian Government’s priority is to seek the best possible financial return for Tasmanians and TT-Line has appointed a broker who specialises in leasing vessels.

“The vessel is temporarily berthed in Leith while this work proceeds, ensuring Tasmanian taxpayers do not foot the bill for an estimated $8 million round-trip from Scotland to Tasmania and back.”

The government noted that the costs would drop over time.

“Should the vessel remain in Leith beyond 30 days, the cost of berthing the vessel reduces significantly,” the update said.

The government has unveiled a $24m package to help offset the estimated $500m in additional revenue the tourism industry is missing each year the ferries are delayed.

The cost of the interest being paid on money borrowed to build the billion-dollar boats has not been separately accounted for.

Labor Leader Dean Winter.
Labor Leader Dean Winter.

Labor leader Dean Winter said the costs of the saga were quickly mounting and two ships would double the cost.

“When his own Government said it would cost $1.2 million per month to store the Spirits in Scotland, Jeremy Rockliff denied it,” he said.

‘The Premier has known this cost for a long time, and he’s tried to sneak it out late on one of the last working days of the year for many Tasmanians.

“After doing his best to deceive the public about how much keeping the Spirits in Scotland will cost, Jeremy Rockliff needs to tell the truth about how much Tasmanian taxpayers will be spending to cover up his massive stuff-up.

“Forgetting to build the berth was stupid, but the cover-up has been worse than the crime and this is why the business community can’t trust this government anymore.”

david.killick@news.com.au

Add your comment to this story

To join the conversation, please Don't have an account? Register

Join the conversation, you are commenting as Logout

Original URL: https://www.themercury.com.au/news/politics/ferry-to-nowhere-running-up-a-380k-a-month-wages-bill/news-story/7540fae1f244c5d156753f90f6f48864