TT-Line compelled to explain $80m Spirit of Tasmania payment, set to front public inquiry

The government business in charge of operating the Spirit of Tasmania ferries will front a public inquiry into the replacement vessels being built in Finland.

New Spirit of Tasmania IV naming and launching ceremony in Finland. Picture: Janika Heikkonen

TT-Line has been accused of dodging questions about its controversial decision to pay an extra $80m to a Finnish shipbuilder to deliver the two new Spirit of Tasmania ferries.

In May, it was revealed in parliament that the state-owned company’s board signed off on the payment to Rauma Marine Constructions (RMC) on March 21, just two days before the state election was held. However, the Rockliff government was not notified of the decision until April 5.

Treasurer Michael Ferguson has said he was given an “indication” of “potential issues” with RMC in a conversation with TT-Line chairman Mike Grainger and CEO Bernard Dwyer on December 21 last year.

The additional $80m to bail out the company is on top of an already agreed upon $800m fixed price contract for the replacement ferries.

Spirit of Tasmania passes Point Lonsdale Pier. Shipping passing through Port Phillip Heads. Picture: Alan Barber

Now the parliament’s powerful Public Accounts Committee has called an inquiry into the delivery of the new ships and TT-Line’s decision to vary the terms of the contract.

Labor leader Dean Winter welcomed the move to establish an inquiry and said there were serious questions to be answered regarding whether or not TT-Line had violated caretaker conventions by rubberstamping the $80m payment during the election campaign without consulting either the incumbent government or the Opposition.

Labor leader Dean Winter speaking at the Spirit of Tasmania terminal in Devonport. Picture: Supplied.

“During caretaker mode, that should trigger both the involvement of the government and the opposition to ensure that Tasmanians’ best interests are being upheld. That didn’t occur and it’s clear that that’s a potential breach of caretaker conventions and it should be examined by a committee,” he said.

Mr Winter said it was “quite extraordinary” that TT-Line had not commented publicly on the matter since it came to light.

“It hasn’t fronted the cameras and it absolutely should. We need to make sure that every cent of Tasmanian taxpayer money is properly spent.”

A TT-Line spokesman said the payment had been scrutinised “in great detail” in parliament, with questions being answered by multiple ministers, including the Premier.

“The issue will be scrutinised further on Friday when the company appears before the Public Accounts Committee,” he said.

Government minister Nick Duigan said the new passenger ferries represented a “fantastic opportunity” for Tasmania.

Government minister Nick Duigan. Picture: Stephanie Dalton

He would not be drawn on claims TT-Line may have breached caretaker conventions.

“This is a complex project, no question about that, and it’s a big deal for this state. We’re happy to answer questions, we want Tasmanians to be interested and excited about the opportunity ahead,” he said.

The first of the new Spirits is expected to come under Tasmanian ownership in the third quarter of this year but arrival dates for the two ships are not yet finalised.

Premier Jeremy Rockliff told parliament last month that he wasn’t “going to be committed to a particular date for the ships to commence service”.