THE TASMANIAN Government has approved an increase in the borrowing limit for TT-Line, which warned earlier this year it could run out of money by September this year.
Treasurer Guy Barnett said the move followed updated advice provided on 25 July, which indicated that TT-Line would require additional temporary borrowings to support its Vessel Replacement Program.
“Guaranteeing borrowing amounts of Government-owned businesses is a routine requirement as part of the ordinary course of business for entities that require borrowings from Tascorp and is a legislated requirement under the Tasmanian Public Finance Corporation Act 1985," Mr Barnett said.
“This temporary increase in TT-Line’s borrowing limit will provide the confidence the company needs to continue its planned operations.
“In accordance with Caretaker Conventions, the Government has consulted on the guarantee with the Opposition on this decision." (The Rockliff Liberal Government remains in caretaker mode as the 19 July election is yet to declared.)
TT Line was forced to contribute an additional Euro 50 million (AUD 81.6 million) matched by the Finnish Government to bail out the builder of new Bass Strait ro-paxes, Rauma Marine Constructions, and has seen the cost of the yet-to-be-completed East Devonport terminal blow out from $90 million to $493 million.
Tascorp chairman Tony Farrell advised that TT Line may require a full government bailout, city several factors dragging on its finances including the temporary lay-up of Spirit of Tasmania IV in Leith from late November 2024.
Meanwhile, on its journey from Scotland to Tasmania Spirit of Tasmania IV departed Cape Town at 2039 on Friday [25 July] after calling for bunkers and stores and is now on its way to Port Louis in Mauritius, where it’s due at 2200 on Thursday [31 July]. The ship has been averaging around 15 knots when at sea.