Release Date: 20/05/2014
The Government’s new direction for TT-Line to concentrate on passengers and not freight is supported by the State’s peak industry body, the Tasmanian Chamber of Commerce and Industry.
TCCI CEO Michael Bailey applauded the State government’s decision to scrap a proposal for TT Line to run two freight only ships across Bass Strait. Instead, the government asked TT-Line to prepare a business case for the refurbishment of the two existing ferries.
“This is a return to the foundation philosophy of the introduction of the Bass Strait ferries which is to provide tourists with options of an economy priced shipping service to bring their cars and caravans and spend time in our State.
“The statistics show the financial advantage to the State if tourists bring their cars, stay longer and share their spending around the State.
“But we can’t underestimate the government’s cultural change in directing the TT-Line, a Government Business Enterprise, to concentrate on passengers and not freight. As well, the TT-Line has been told to reduce costs by up to 20 per cent to become more affordable and competitive.
“This is in contrast to two years ago when TT-Line was applauded for a $20 plus million profit for the year, yet passenger numbers had dropped by a massive 20,000”
Mr Bailey said that if TT-Line had been given the heads up to run the two dedicated freight ships then on principle, it would have no choice but to privatise TT-Line.
“Also, I believe most of the refurbishing work will be done in Tasmania, if possible, which will sustain and create jobs in this sector.”
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Contact: TCCI Chief Executive, Michael Bailey, mobile 0437 322 338