Infrastructure Minister Michael Ferguson says he was ‘kept in the dark’ over ferries berth delays

The state government says it was kept in the dark by ferry operator TT-Line about delays to Devonport berth upgrades needed to accommodate the new Bass Strait ferries.

The state government was kept in the dark by ferry operator TT-Line about delays to berth upgrades needed to accommodate the new Bass Strait ferries, a parliamentary committee has heard.

Treasurer and Minister for Infrastructure Michael Ferguson has told the Public Accounts Committee inquiry into the TT-Line Spirits Project that he was “surprised” and “very let down” to learn after the March state election that TT-Line had cancelled and retendered for works on Devonport’s berth three.

Mr Ferguson said he was not told until after the state election TT-Line had cancelled the critical berth upgrade contract — despite previous assurances from the company all was well.

The committee heard the minister had organised for the two government business enterprises to meet and discuss any issues as long ago as November 2023 — and had arranged further assistance from his department.

“I think that points to why I was so surprised at the end of the caretaker period to find that there was no longer an active preferred contract or preferred tender in place for the delivery of the of the birth,” he said.

Spirit of Tasmania V, has been officially named and launched at a traditional ceremony at shipbuilder Rauma Marine Constructions (RMC) yards in Finland. Governor of Tasmania, Her Excellency the Honourable Barbara Baker AC. Picture: Supplied/TT-Line

“There’s been a failure that has led the government to be very disappointed, and I think that that’s been very clearly on the public record.

“We are profoundly disappointed with, in particular, the rescinding of the preferred contractor in March during the caretaker period and the commencement of an entirely new procurement.”

The committee also heard a report that might have alerted government of issues with the project was given to the Department of State Growth on February 12, but a junior public servant decided not to pass it on during the caretaker period in the lead up to the state election, the Committee heard.

The election was called on February 14. The report did not reach the Secretary of the Department of State Growth until April 17.

TT-Line also decided to make a $80m additional payment to shipbuilders RMC during the

caretaker period after they ran into financial problems.

Spirit of Tasmanian IV first sea trial. As the build of Spirit of Tasmania IV nears completion, the ship took to the open seas for the first time on a five-day trial run from Rauma Marine Constructions in Finland. Picture: Spirit of Tasmania

TasPorts are carrying out $240m of port upgrades in Devonport, where berth 1 is too shallow for the new ferries to operate when fully loaded.

TT-Line is spending an estimated $365m on upgrades to Berth 3.

They are not due to be finished until at least January 2026 – about a year after the first of the new ferries is expected to arrive.

Until the work is complete, the new ferries will need to operate at reduced capacity.

TasPorts chairman Stephen Bradford said the company had become concerned about the TT-Line’s progress on the Berth 3 upgrades in early 2023 and had raised issues with the minister “frequently”.

“We for quite a period advised the minister,” he said.

“From his point of view, his answer was ‘I’ve got a problem, because … I’m getting the exact opposite answer from the other party’,” he said

But Mr Bradford said he had nothing in writing to document having raised concerns.

“No, I don’t do meeting minutes. I never have,” he said.

Mr Bradford agreed the works at berth 1 were “unplanned, unfunded, unbudgeted, urgent and difficult”.

He said TasPorts didn’t have the money to do the work.