Woes facing builder of new Spirit of Tasmania ferries no hit to state’s finances, says Treasurer

The financial difficulties facing the German builder of the replacement Spirit of Tasmania vessels pose no risks to TT-Line’s finances, the Treasurer says.

A concept design for the replacement Spirit of Tasmania vessels.

THERE are no risks to state-owned ferry operator TT-Line from financial troubles at the German shipbuilder constructing two new Bass Strait ferries because no money has yet changed hands, Treasurer Peter Gutwein says.

Mr Gutwein said contracts were in place for the $700 million project but no deposit had been paid yet.

He said senior TT-Line staff would meet with officials from Flensburger Schiffbau-Gesellschaft this week.

The company is supposed to deliver two 212-metre roll-on roll-off ferries for the Bass Strait route in 2021.

GERMAN SHIPBUILDER FACING FINANCIAL WOES

$700 MILLION DEAL FOR TWO NEW BASS STRAIT FERRIES

Labor says the sudden departure of the head of TT-Line’s strategic projects division Massimo Soprano, plus financial problems at the shipyard, could push the ships’ delivery date past the deadline.

An artist’s impression of the new Spirit of Tasmania ferries.

However, Mr Gutwein said the risks were all being managed appropriately.

“They [TT-Line] are meeting with FSG this week,” he said. “It’s quite obvious that there have been some challenges that FSG have faced, but we are working through that process with them.

“In terms of the current circumstance we have not paid a deposit, nor will we pay a deposit, until there is a guarantee in place in terms of delivery, we’ve made that perfectly clear,” Mr Gutwein said.

“TT-Line will be meeting with FSG this week and I am hopeful that we can move on with this with the contract in place.”

Opposition infrastructure spokesman David O’Byrne said the State Government needed to assure the public such a major investment was proceeding with due regard for the risk to the taxpayer.

“Every time we raise issues around the delivery of the TT-Line vessels and the build, the Government accuse us of scaremongering,” he said.

“But the evidence that comes out shows that there are genuine concerns with the ability of Tasmania to have those vessels delivered on time.

“There is no explanation as to the resignation of the head of the team.

“There is no explanation from the State Government around the issues in the shipyard in Europe.”