Tasmanian Government Announces $506m Bailout for Spirit of Tasmania Operator

The Tasmanian government has announced a $506 million equity injection into TT-Line, the state-owned operator of the Spirit of Tasmania ferries, to address significant financial difficulties stemming from a troubled vessel rollout. Infrastructure Minister Kerry Vincent and Treasurer Eric Abetz revealed the bailout ahead of the upcoming state budget, emphasizing that the funds will cover past capital cost overruns rather than new expenditures. The decision follows a parliamentary inquiry which highlighted that the ferry replacement program exceeded original forecasts by at least $717 million, including a massive overrun on the new Devonport terminal. TT-Line currently faces substantial debt and high interest repayments. The government aims to reduce the company's debt burden and ensure the continuity of this vital tourism and freight link. The two new ferries, Spirit of Tasmania IV and V, are currently stationed in Victoria’s Port Phillip Bay and are scheduled to begin operations in late October. This bailout adds to a previous $75 million equity injection provided in last year’s budget, reflecting the ongoing financial strain on the critical infrastructure project.