Spirits and port works cost blowouts won’t be funded by taxpayers

July 1, 2024 10:29 am in by

A parliamentary inquiry into cost blowouts to the replacement Spirit of Tasmania ships and associated major port infrastructure work in Devonport, has been told the bill for any cost blowouts won’t be footed by the taxpayer.

TT-Line CEO Bernard Dwyer has told the inquiry the cost of the new ships and port upgrades is coming out of TT-Line’s budget and borrowing capacity.

Mr Dwyer says the state-owned company has built up a considerable cash surplus and has the capacity to borrow up to $900 million on top of that.

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He says the state-owned company will be responsible for debt incurred on money borrowed to fund the projects, which it will pay off in 15-20 years.

The inquiry, being chaired by Murchison Independent Ruth Forest, will resume on July 16th, when further evidence from TT-Line will be presented, as well as TasPorts and other entities.