Tasmania dodged bullet in Spirit of Tasmania ferry deal renegotiation, Premier says

Premier Jeremy Rockliff has revealed the state dodged a bullet when TT-Line renegotiated the contract for the new Spirit of Tasmania ferries.

If the original fixed-price contract with shipbuilder RMC had fallen through, Tasmanian taxpayers could have been hit with a bill hundreds of millions of dollars higher.

The government admitted last week TT-line had forked out an extra $81 million to keep the project afloat and this week said a penalty clause for late delivery had been scrapped.

The Finnish government has also committed to match the amount to secure the future financial viability of RMC, who are battling through increasing material costs and labour challenges.

Rockliff said if the deal hadn’t been renegotiated, TT-Line would have had to start from scratch with a new shipbuilder, likely paying up to 30% more for the ferries.

“This would have been hundreds of millions of dollars extra to the Tasmanian taxpayers, an even longer delay in the delivery of new ferries, the loss of contracts already signed by RMC with Tasmanian suppliers and increased uncertainty for Tasmanian businesses banking on the greater capacity and opportunities brought about by the new ferries,” he said.

The ferries will be over 210-metres long, have space for up to 1,800 passengers and a total of 301 cabins.

The first ship, initially expected to arrive from European shipbuilder Rauma Marine Constructions in June, has been delayed until the third quarter of the year, while the second ship is expected in early 2025.