THE TASMANIAN Parliament’s Public Accounts Committee has slammed just about everyone involved in the Spirit of Tasmania ships and berth replacement projects in an interim report released yesterday.
The committee’s report, which covers events only until the end of last year — up to two further reports are envisaged — details “a project characterised by multiple design, management and supplier changes and associated cost increases, governance failures, and inadequate oversight”.
Chaired by independent Legislative Council member Ruth Forrest and with equal numbers of members drawn from the Upper and Lower Houses, the standing committee began its inquiry in June 2024 after receiving a referral from the House of Assembly.
The targeted review focused on the additional funds provided to Finnish shipbuilder Rauma Marine Constructions and matters related to the failure of TT-Line to construct a suitable Berth in Devonport for the new vessels prior to the vessels being ready for service, but catalogues a long list of problems with the replacement project, described as “one of Tasmania's most significant infrastructure delivery and governance failures”.
“Vessels originally promised for 2021 will not be operational until at least late 2026, a delay of more than five years,” the report says. “The cost to Tasmanian taxpayers includes not only the direct financial burden of vessel cost increases and infrastructure expenditure, but the substantial ongoing opportunity costs to Tasmania's tourism industry and broader economy.
“The Committee made an overarching finding that the failure to deliver suitable berthing infrastructure for the new Spirit of Tasmania vessels represents a fundamental breakdown of governance in, and collaboration between, two government-owned entities TT-Line and TasPorts.”
The Committee found systemic failures with respect to:
The Committee made 69 more focussed findings across vessel replacement and infrastructure delivery, highlighting failures in:
Five recommendations were made that focus on project governance, reporting, particularly during caretaker periods, and further investigations by Government required to ensure lessons are learnt.
The PAC notes the interim report deals only with evidence received up until its terms of reference were revised in late 2024; developments and evidence received since then will be reported in a future report.
“The Committee is continuing oversight and scrutiny of the delivery of Berth 3 and related infrastructure in Devonport … ongoing scrutiny will continue at least until the new Spirit of Tasmania vessels are in full service and beyond if deemed necessary,” the PAC said.
The full 84-page report can be downloaded here.