Peter Gutwein reveals next stage of Spirit of Tasmania ferry replacement

Peter Gutwein has spent much of question time this morning defending his handling of the replacement Spirit of Tasmania ferries, who says their “sensible pause” meant better outcomes for the local economy. LATEST >>

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UPDATE, 11.30AM TUESDAY:

PREMIER Peter Gutwein has spent much of question time this morning defending the state government’s handling of the replacement Spirit of Tasmania ferries.

As revealed on Monday, the state government has scrapped a bid to build two new TT-Line ferries in Australia, reverting to the initial plan to buy two steel monohull vessels from Finnish shipbuilders RMC.

In state parliament this morning Opposition leader Rebecca White said the state government had turned the TT Line ship replacement into “an absolute farce”.

“After a delay of almost a year we have gone right back to square one,” Ms White said.

“This ridiculous episode has seriously called into question your judgment and your government’s ability to deliver major infrastructure projects.”

Labor leader Rebecca White during question time in state parliament. Picture: Zak Simmonds

Mr Gutwein said resetting the project would create more Tasmanian jobs.

“As a result of the pause, a sensible pause, we are now in a position where we can achieve between $50m to $100m in local content,” he said.

Labor was attacked by the government and heckled by ex-member Madeleine Ogilvie for hypocrisy over the TT Line project.

Since the ships’ process was paused Labor has railed at the government’s push to build the ships in Australia.

A report by respected economist Saul Eslake, commissioned by Labor, concluded any move to build the ships locally would be an immense economic blunder to cost the state dearly in lost freight and tourism capacity.

Shadow infrastructure Minister Shane Broad said the government’s indecision over the TT Line project was a blow to Tasmanian producers and tourism operators due to ongoing capacity constraints on the current ships.

Mr Gutwein said Labor had done nothing but complain about the government’s decision to halt the Finland ships build.

“It feels like up and down and black is white in this chamber. It’s quite extraordinary, for over six months Mr Broad has been demanding that we take the ferries to Finland,” he said.

“I thought he would at least be happy that now there is at least an opportunity for an additional 50 to 100m local content in Tasmania.”

MARCH 15, 3.15PM:

Premier Peter Gutwein has revealed his plan to replace the Spirit of Tasmania ferries, going against a Taskforce’s recommendation that would have delayed the process by at least nine months.

The Taskforce had recommended the government begin a ‘Request for Proposal’ process for the replacement of the ferries,

A six to nine month period was recommended for proponents to prepare detailed proposals, allowing the government to make a more informed decision.

Premier Peter Gutwein. Picture: Zak Simmonds

But in an update this afternoon, Mr Gutwein said his government would not proceed with the recommendation, saying two monohull steel vessels was their preferred option.

Mr Gutwein also announced TT Line would work with Finnish shipbuilding company RMC over the next 30 days to finalise a construction contract.

TT Line will target a date for new vessels to be delivered in 2023 and 2024.

However, if a contract cannot be reached in the next 30 days, the government will move forward with the recommendations in the report.

MARCH 14:

REPLACING the Spirit of Tasmania ferries with anything other than monohull vessels would be “disastrous”, a long-serving former TT-Line board member believes.

But Tasmania’s only independent member of the state’s House of Assembly says a catamaran should be delivered as part of the strategy while a longer-term solution is pursued.

The calls come as Cabinet prepares to consider on Monday a recently delivered taskforce report into how to replace the ferries, with Premier Peter Gutwein expected to deliver his state of the state address in parliament this week.

State Cabinet is set to consider a report on the possible replacement ships for the Spirits of Tasmania. Picture: Alan Barber

Tourism operator Simon Currant, who was on TT-Line’s board for 16 years, including when the current Spirit of Tasmania vessels were decided on, said there was only one viable option.

“The conditions on Bass Strait are such that there is no catamaran made or operated anywhere in the world (that can cope) with the sea conditions that exist on Bass Strait,” he said.

“TT-Line have spent millions of dollars investigating what the best option is, and does anyone seriously believe that if a cat was the best option, TT-Line would not be calling for that?

“When the existing two red ships were considered, TT-Line spent two years doing virtually the same thing again, looking at what the best option was for Bass Strait.

“So there isn’t any doubt in my mind — it can’t be anything except monohulls. It would be disastrous if (government) approved anything other than replacing them with monohulls.”

Tasmanian tourism identity and long-time TT-Line board member Simon Currant has warned against choosing anything other than a monohull ship to replace the Spirit of Tasmania ferries. Picture: LUKE BOWDEN

But Clark MP Madeleine Ogilvie said she was hoping for an Incat catamaran to be included in the conversation.

“I know that the Premier will be wanting to announce something that captures Tasmanians’ imaginations in the state of the state in parliament this week. A Tasmanian-made ship on Bass Strait would do that,’’ she said.

“I think there is a real shot of this happening … I back in our workforce on the issue of building world-class boats. Incat itself exports boats all over the world and many Tasmanians have travelled on them overseas, why not here?

“We need to have more of a can-do attitude and if a cat is a supplementary boat to TT-Line’s ships, that would be a great result.”

Independent MP Madeleine Ogilvie says a Tasmanian-made catamaran plying Bass Strait would “capture Tasmanians’ imaginations”. Picture: Zak Simmonds

The state government announced in July last year it was going back to the drawing board on Tasmania’s largest-ever infrastructure project, expected to cost more than $850 million.

Announced in 2018, the two new ferries were supposed to be in service by this March, but instead the government went against the advice of the TT-Line board in trying to find a local builder for some or all of the project.

A recent survey of 1229 Tasmanians commissioned by the Tourism Industry Council Tasmania found overwhelming support for replacing the existing ferries with purpose-built vessels up to 40 per cent larger, with significantly lower backing for a catamaran option.

Labor infrastructure spokesman Shane Broad said critical industries were sweating on the replacement vessels.

“It’s been more than six months of uncertainty for the Tasmanian tourism and freight sectors due to the shock decision to ignore the TT-Line board’s business case for two new Spirits,” Dr Broad said.

“The delay has already cost the state hundreds of millions and the uncertainty needs to end with a decision that is not a political fix but rather in the best interests of the state.”

A state government spokeswoman on Saturday said the government was “committed to maximising Tasmanian jobs and making decisions in the best interests of Tasmania”.

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