Dedicated fund to help replace Spirit of Tasmania


The vessel replacement initiative receives initial cash injection of $40 million courtesy of TT-Line

Dedicated fund to help replace Spirit of Tasmania
The state government plans to replace the existing fleet in the early-to-mid 2020s

 

The Tasmanian government is planning an investment strategy for replacing TT-Line’s Spirit of Tasmania I and II ferries to help support the state’s tourism and freight needs.

The state’s dedicated Vessel Replacement Fund that will help bankroll the replacement of the existing ships has received an initial cash injection of $40 million from TT-Line operations, with a second $40 million dividend expected in 2017-18.

"Further contributions are expected to be made to the Fund in future years as the budget situation and TT-Line’s cash position allows, noting that even after the initial contribution of $80m to the Ship Replacement Fund, TT-Line will still have significant cash reserves," the government says.

"Another element of the government’s proactive strategy to replace the Spirits is cabinet’s special ship replacement sub-committee, chaired by the Minister for Infrastructure and comprising the premier and the treasurer.

"Given the role of these vessels for Tasmania, the government wants to have direct oversight and work with the TT-Line to ensure the next vessels are the right ones."

The "fully cash-backed" fund will be protected by special legislation to "prevent future governments from taking the money TT-Line has built up for vessel replacement, and instead using it for other purposes", the government says.

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