Tasmania’s troubled ferry operator could soon receive hundreds of millions of dollars in additional taxpayer funding, according to two political commentators.
The claim adds to the $75 million bailout TT-Line received in November’s interim budget, as well as a $400 million increase to its borrowing limit approved during last year’s election campaign.
“We are talking, I understand, hundreds of millions of dollars more to bail out the TT-Line and to keep it afloat,” Brad Stansfield said on the Poll Position podcast released today.
Stansfield, a former Liberal staffer, said the funding would likely be announced before or during the next state budget, scheduled for Thursday, May 21.
His co-host Alex Johnston, who has worked for Labor and independent politicians, agreed the financial situation was dire.
“It’s too big and too important to let fail,” Johnston said.
The pair said the Spirit of Tasmania replacement project has blown out by roughly $500 million.
That figure includes the berth cost ballooning from $90 million to $493 million, an $81 million secret payment to the Finnish shipbuilder, $9 million for hull modifications and tens of millions more in ship storage costs.
Auditor-General Martin Thompson declared TT-Line insolvent in August, finding the company had taken on debt it could not repay.
The TT-Line board disputes that finding, pointing to $400 million in undrawn government-guaranteed borrowings and a recent equity injection.
Stansfield said he had heard positive feedback about new TT-Line chair Ken Kanofski and chief executive Chris Carbone, but questioned whether the company’s financial bleeding had actually stopped.
“From what I can see, the ship is still sinking,” he said.
A state government spokesperson told Pulse work was being undertaken behind the scenes.
“The board and management of TT-Line, with the assistance from specialist advisers, continue to work on developing a range of options to ensure the long-term financial sustainability of the business,” the spokesperson said.
“Once finalised, options will be presented to shareholder ministers for consideration by government.”
The new Spirit vessels are due to begin Bass Strait services in October this year.
The Poll Position podcast is hosted by Brad Stansfield and Alex Johnston.
