Labor is challenging the premier to rule out fare increases on the Spirit of Tasmania ferries as the operator faces mounting debt pressures.
New Labor leader Josh Willie raised concerns after the state government recently increased TT-Line’s borrowing limit from $990 million to $1.4 billion.
He linked the debt burden to delays and cost overruns in the ferry replacement project.
“We’ve seen an increase in the loan facility. Is it going to be Tasmanians and tourists coming to Tasmania paying for the cost blowouts through increased fares over the journey?” Willie said.
“I think that would be detrimental to our tourism industry, hospitality venues, and Tasmanians who use the Spirit service.”
Willie pointed to specific issues including Spirit IV sitting idle at Hobart’s wharf and the TT-Line chair reportedly suggesting a bailout might be necessary.
“My concern today is that because TT Line’s finances are in disarray, will it be Tasmanians and tourists coming to Tasmania that pay for the cost blowouts over the journey, which will dampen the effect on our tourism and hospitality sectors?” he asked.
The government has dismissed the concerns, with Minister Nick Duigan calling it “trademark negativity from the new Labor leader”.
“TT-Line has already answered that question and the answer is no,” Duigan said.
“It is a much more, as you would expect, nuanced environment than just that. But this is just more relentless negativity from Labor seeking to ride their favourite hobby horse.”
Duigan added that TT-Line would operate according to its own business decisions.
“TT Line is a business and it will go about conducting its business as it sees fit,” he said.
