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Ferry service costs taxpayers millions
The Tasmanian government’s TT-Line Company Sydney to Devonport ferry service has revealed a net loss of $43.62 million in its 2004 / 05 annual report yesterday.
This is despite the government’s $115 million three-year rescue package, announced in March, under which the service , launched in 2003, has already received $65 million , and has been promised a further $25 million in both the 2006-07 and 2007-08 state budgets.
Tasmanian Premier Paul Lennon announced the rescue package for Spirit III earlier this year, despite advice from the Department of Treasury and Finance which recommended the vessel should be sold.
Increases in fuel costs, cheap airfares on budget airlines, and greater security demands had all affected the vessels’ annual profits, TT-Line said. After an aggressive marketing campaign in Sydney, the one piece of good news was that passenger numbers were up 45% on the corresponding period last year to almost 60,000.
TT-Line’s Melbourne-to-Devonport vessels, Spirit of Tasmania I and II, posted a combined net loss of $35.54 million.
However, despite these figures, those passengers from Sydney spent an average of $2,700, while passengers from Melbourne spent $2,100.
This represented an annual injection of $348 million to Tasmania’s economy, the company said.
This issue has been running for a number of weeks now in Tasmania with conflicting reports on exactly how many jobs in the tourism industry would be lost if the services were cut. Anger has been rising between the Premiers Department and the local newspaper over leaked Treasury reports with the Premier saying The Mercury was spearheading a campaign ” to scuttle the ship”.
“The tourism industry has every right to question the motives of The Mercury,” Mr Lennon said, adding that he found the paper’s attitude disappointing.
” I do not support their view. I support the Tasmanian tourism industry and the role that it plays in providing employment for many thousands of Tasmanians.”
Could be an interesting day in the Apple Isle today.
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