This is an important speech to the Tasmanian Parliament, regarding the spirits debacle. Information below for those who want a deeper understanding of what we were told by TT-Line management and what extra steps we took on behalf of Tasmanians. I would welcome your feedback in the comments section below, Michael.
This speech was given on 5 March, 2025.
The Mercury Newspaper, 6 December 2024. TT-Line finally took responsibility for the situation after months blaming TasPorts and failing to inform its shareholder ministers of its decision to terminate its preferred contractor during the election caretaker period.
Setting the Record Straight on the TT-Line Devonport Berthing Infrastructure Project
Key points:
- TT-Line Company Pty Ltd chose to manage its own Devonport berthing infrastructure project, moving away from the initial plan to have TasPorts do so.
- As Minister for Transport prior the 2024 election, TT-Line repeatedly advised that the new ships and at-grade berthing infrastructure would be in place at Devonport by August 2024, and that TT-Line had engaged a preferred contractor under a letter of commitment. The company gave the same timeframe to a Parliamentary committee, under oath.
- State-owned Companies are established under the (Commonwealth) Corporations Act 2001. Like other companies (such as Qantas, BHP, Bank of Us), TT-Line is governed by a Board of Directors which is responsible for major decisions. Operational decisions are made at the executive level, with oversight by the Board.
- Companies are required to advise their shareholders (ministers) of major decisions in a timely manner.
- During the election caretaker period, TT-Line unexpectedly terminated its preferred contractor: Hazell Bros/Brady Marine Joint Venture. TT-Line failed in its duty to inform the Government (shareholders). Neither did it provide advice on the impact of this critical decision on the Devonport berth project.
- In December 2024, after months of blame game, the new replacement chair of the TT-Line company board Mr Damian Bugg KC made the frank admission that after his analysis, the company was at fault all and took responsibility.
Conclusion:
The challenges with the TT-Line berthing project are deeply regrettable and have been a major learning experience for all involved. Responsibility for the decisions made has been shared across various individuals and entities involved in the project. While mistakes were made, the Government took significant steps to address the issues and believed this would ensure the project’s success. The Government and I have apologised for the mishandling of this significant investment that became apparent – an investment which we still believe will ultimately be a very positive and exciting development for our state. By acknowledging these facts and reforming GBE governance, we aim to avoid similar challenges with future projects managed by GBEs and deliver better outcomes for all Tasmanians.
Further reading:
1. My evidence to the Public Accounts committee on 9 August 2024.
