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Tasmanian Industry already talking about life after Spirit III
Although no announcement has formally been made, it appears that the Tourism Council of Tasmania is bracing for the worst and the Maritime Union of Australia fighting to keep the Spirit of Tasmania III afloat, all the indications are that the ferry’s days are numbered, with an industry leader already saying that the money from ferry sale should go back into State tourism.
In February last year, Treasury gave the Tassie Premier Lennon a confidential report. “Put simply, from a financial perspective the Sydney service is unviable,” and TT-Line chief Denis Rogers admitted last week that Spirit III “just kept on losing money”.
The Tourism Council has braced itself for the worst, saying it would be “burying its head in the sand to presume the ship will be retained” but has put contingency plans in place.
Therefore Spirit III appears sunk, with bids for the vessel already apparently coming in from Europe and questions being asked where the money previously allocated to continue supporting Spirit III now flow?
The Government is believed to still have about $A50 million from the $A117 million rescue package pledged to the ship last year and on Friday, Mr Rogers said there had been interest from Europe in buying Spirit III, which would improve company finances by another $8-$10 million.
Mr Lennon told a North West mayors in a meeting on May 28 that extra tourism funding would be provided if the Government did scrap the ferry service however; the Government may now look to channel some of the money towards health.
Tourism Council chief Daniel Leesong said after exit costs he expected around $35 million to still be available and insisted the money must go where it was originally promised, to the tourism industry and that $600 million worth of tourism developments under way around the State would be jeopardised if the ship was sold and money channelled elsewhere. He suggested the funds should be spent on advertising to develop new markets in NSW and Queensland.
“The money was already committed to that and it would be walking away if the money went elsewhere. There must be adequate money spent because these markets are large and expensive to advertise in,” Mr Leesong said.
Report by The Mole
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