Taxpayers fork out $75m for embattled Spirit ferries
Taxpayers will pay $75 million to help the troubled operator of two new Spirit of Tasmania ferries resolve ongoing financial problems.
It was also revealed that human error was to blame for the $9 million worth of upgrades required for the ships and their incomplete docking in Tasmania.
The two replacement ships are not expected to enter service until late 2026; this is years behind schedule, as a pier was not built at Devonport in time for the arrival of the ships.
The saga, which caused one of the new ships to be kept in Scotland for months, is remembered as one of the largest infrastructure fillings in Australian history.
The Tasmanian government announced on Monday it would give the ship’s state-owned operator TT-Line a $75 million injection in the November 2025/26 budget.
TT-Line president Ken Kanofski told reporters the funds would deal with “medium-term” financial issues.
“We said ‘we need a buffer,’ we don’t want to run too close to the wind,” he said, adding that the company had asked the government for $100 million.
“We now turn our attention to the long-term future of the business (and) operating in a financially sustainable way.”
TT-Line has been dealing with cost overruns, including a $493 million berth at Devonport that was originally priced at $90 million.
In July, it increased the borrowing limit from 1.035 billion dollars to 1.445 billion dollars.
Mr Kanofski said $9 million would need to be spent on strengthening the hulls of both ships and replacing the shock-absorbing pier fenders at Devonport docks.
It turned out that three of the fenders were built stronger than necessary because TT-Line had provided the wrong specifications.
“This was a mistake. What TT-Line made in 2023 was clearly a human error,” Mr. Kanofski said.
He said the $9 million would not impose any additional costs on the project and would come from the emergency buffer.
Labor opposition MP Dean Winter said Tasmanians were being forced to pay the price for their incompetence.
“The bill for the biggest infrastructure job in Tasmania’s history continues to grow,” he said.
The state government has not ruled out granting TT-Line the remaining $25 million of the company’s claim if necessary.
