‘Untenable’: TT-Line chair Michael Grainger quits amid war of words with government over ferry berth delays

The chairman of government-owned ferry operator TT-Line has been forced to resign after an escalating war of words over delays to berth facilities for the new Bass Strait ferries. The details >>>

TT-Line chair Michael Grainger has been forced to quit.

The chairman of government-owned ferry operator TT-Line has been forced to resign after an escalating war of words over delays to the new Bass Strait ferries prompted a dramatic government intervention.

Just hours after Michael Grainger challenged evidence given to a parliamentary committee about delays to Devonport terminal infrastructure, the government announced his departure.

“The Tasmanian government has requested and accepted the resignation of the Chair of TT-Line, effective immediately,” Treasurer Michael Ferguson and Transport Minister Eric Abetz said in a joint statement.

“It has become clear the relationship between the government and the Chair has become untenable.

“The government is committed to delivering the new Spirits and the infrastructure to support their arrival.

“The Tasmanian government is confident that the project can now move forward – collaboratively and in partnership with TT-Line, TasPorts and the Department of State Growth – and we look forward to soon welcoming the new Spirits into the waters of the Mersey.”

Mr Grainger’s departure comes as TT-Line awaits the delivery of two new vessels as part of a billion-dollar plus upgrade to the Bass Strait sea link.

TT-Line and TasPorts have blamed each other for delays to upgrades at Devonport’s berth 3 amid budget and timeline blowouts.

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

The new ferries are expected to run at greatly reduced capacity out of berth 1 for at least their first year of operation because the new berth won’t be ready in time.

In a statement issued at 2pm on Wednesday. Mr Grainger said he looked forward to “setting the record straight” when he and members of the management team gave their version of events next month.

“Out of respect for the Public Accounts Committee process, while noting the significant community interest in the matter, we will be providing our factually correct evidence to the PAC first,” he said.

“At a high level, the Board, which met on Tuesday, stands by its recent decisions and the processes around those decisions, particularly related to paying additional funds to Finnish shipbuilder Rauma Marine Constructions to complete our two new Spirit of Tasmania ships.

“Further, we look forward to explaining in greater detail the context for the decisions the Board took in relation to the terminal development at berth 3 in Devonport.”

Labor described the statement as a direct accusation that Deputy Premier Michael Ferguson and TasPorts had misled a Parliamentary inquiry.

Just minutes earlier Premier Jeremy Rockliff announced the appointment of two infrastructure experts to try to sort out the “unacceptable” delays to berth upgrades needed to accommodate the new Bass Strait ferries in Devonport.

Premier Jeremy Rockliff announced on Wednesday that Ben Moloney has been appointed to collaborate with TT-Line and TasPorts, on top of his day job of overseeing the construction of the new $786m Bridgewater Bridge

Ben Moloney was RHH Redevelopment Project Director. Picture: Richard Jupe.

Mr Rockliff said infrastructure delivery expert Peter Gemell has also been appointed to oversee the project to ensure the berth is ready as soon as possible and also allows for increased capacity for passengers and vehicles.

Mr Rockliff said the government would issue further directions to both TT-Line and TasPorts to greater responsibility and access for the Department of State Growth.

Mr Rockliff said that the delivery of the new vessels is a massive and important project for the state.

“I have been clear of my disappointment in these delays, and it’s frankly not acceptable,” he said.

“We will pull out all stops to get this done as soon as possible.

“I’m not interested in excuses or the blame game. I want solutions and I want them now. That’s what Tasmanians deserve and expect.”