Labor proposes TT Line, TasPorts shake-up

THE TASMANIAN Labor Opposition is touting a major overhaul of government business enterprises after highlighting what it claims is wastage of more than $3 billion since the Liberal Government came to office in 2014.

In delivering the Budget in Reply speech in Parliament last week Opposition leader Josh Willie singled out TT Line.

“Look at the Spirits alone,” Mr Willie said. “Four hundred and three million dollars on the berth. Eighty million dollars to bail out a Finnish shipbuilder. Another secret $13 million bailout. A $75 million bailout for TT-Line last year. Another $506 million last week. Nine million dollars for hull upgrades because the Liberals got the fendering wrong. And even while TT-Line was being driven into the ground, they still found half a million dollars for executive bonuses.

“The Spirits are just one example.”

Mr Willie said a key part of Labor’s economic vision was a structural reform “to clean up the Spirits mess, to end the TT-Line bailout cycle, and to fight for fair funding for Tasmania’s critical economic infrastructure.

“The Liberals bought two ships and forgot to build a berth to receive them. They sent TT-Line, which was a profitable business, broke. Tasmanians have been forced to spend more than half a billion dollars on bailouts just to keep TT-Line afloat. It’s not sustainable”.

Mr Willie said while the Commonwealth provided worthwhile operating support through passenger and freight equalisation schemes, they do not fund the infrastructure that keeps Tasmania connected to the national economy.

“That is why today I announce a Labor Government will pursue a structural reset of Tasmania’s Bass Strait gateway.

“TasPorts will cease to exist as a Government Business Enterprise. Labor will reclassify TasPorts from a Government Business to a dedicated transport infrastructure entity within the State Government and change its name.

“We will transfer TT-Line’s vessels, associated assets, and debt to the new entity so that TT-Line can focus on what it does best: running a reliable Bass Strait service, ferrying passengers, vehicles and freight, supporting tourism and producers.

“TT-Line will emerge debt-free, and become a lean operating company capable of returning dividends to the State Budget.

“The new transport entity will focus on maintaining major maritime infrastructure. Performance will be measured on asset condition, network reliability, and capacity utilisation, instead of operating without adequate oversight and plundering for profit.

“Debt will be treated as transport infrastructure investment, consistent with how roads and rail infrastructure are treated.”

Mr Willie said the reform would retain full Tasmanian Government ownership and operational control of TT-Line and the new transport infrastructure entity, fixing the structure, and reducing risk.

Labor would also fight for a long-term Commonwealth Sea Highway Funding Agreement, which would recognise Bass Strait as part of the National Land Transport Network.

“If the mainland benefits from Tasmania’s produce, freight, visitors and economic contribution, Tasmania should not be left to shoulder the infrastructure burden alone,” he said.

“This is ambitious There is no doubt about that. It’s time Bass Strait was recognised as what it really is: Tasmania’s highway. Our connection to the national economy. Critical economic infrastructure that benefits the whole country.”