Premier Jeremy Rockliff confirmed on Sunday he would explore a merger between state-owned businesses TasPorts, TT-Line and TasRail as part of "much-needed" reform.
However, the need for a lengthy review of this option means any merger might not come to fruition until late next year.
We're going to look into merging TT-Line, TasPorts and TasRail into one.— Jeremy Rockliff (@jeremyrockliff) And we'll be changing the rules to make the leadership at all of our government businesses more accountable, pulling together as a true Team Tasmania.These will be the biggest reforms of our government…November 2, 2024
The proposal follows cost blowouts, finger-pointing and slow infrastructure builds which have plagued the delivery of two new Spirit of Tasmania ships.
Last month, the minority Liberal government announced a new terminal in Devonport - needed to berth the new vessels - wouldn't be ready until February 2027, more than two years behind schedule.
As a result, a number of TT-Line staff were either sacked or quit.
In October, MP Michael Ferguson stood aside as deputy premier and moved to the backbench following scrutiny of the project, and the subsequent conclusion that he might not survive a no-confidence vote in the state parliament.
On Sunday, Mr Rockliff described the merger proposal as a "landmark move", saying it could ensure more integrated, cost-effective, and responsive transport and logistics services.
Jeremy Rockliff says a merger could ensure a more integrated, cost-effective, and responsive system. (Rob Blakers/AAP PHOTOS)
The cost of the botched ferry project, which includes two new ferries and the berthing facility, has ballooned to around $1 billion.
The first ship is set to arrive in Tasmania from Finland in the coming weeks, but will likely be leased out until the new berth is ready.
In a best-case scenario, the berth could be ready by October 2026.
"I am angry about what happened to the Spirit of Tasmania and the berthing facility and Tasmanians are angry," Mr Rockliff told reporters.
"This is a huge stuff up... Tasmanians quite rightly demand reform and we're providing that reform today."
TT-line, trading as Spirit of Tasmania, is a government-owned business that has offered ferry services between the Apple Isle and the mainland since 1993.
TasPorts is a state-owned company responsible for 11 Tasmanian ports and the Devonport Airport.
The proposed merger will include TasPorts which runs 11 Tasmanian ports. (James Ross/AAP PHOTOS)
TasRail is a state-operated company that manages train lines and has operated freight-only services since 2009.
The Tasmanian government will undertake a detailed restructuring analysis to assess the proposal and ensure a smooth transition.
The analysis will also identify any potential regulatory, legal and competition issues.
The work could take as long as six months, according to Mr Rockliff, who said the government would ensure due diligence before moving forward.
If the analysis found the merger would be beneficial, the government would then move to introduce legislation in parliament.
Standing alongside Mr Rockliff, Tasmanian Chamber of Commerce board member Ian Jones welcomed the government's plan.
"We have been advocating for the last 12 months for review, so we look forward to being able to submit our input and we're hoping for a great outcome," he said.
Labor leader Dean Winter said the reforms announced by Mr Rockliff on Sunday mirrored those he proposed a month ago.
He called on the premier to commit to legislating the changes by the end of the year, while warning Labor would fight any plans to sell off government businesses.
Mr Rockliff said the government had no plans to privatise the proposed merged body or the state's hydro business.
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