Legislative Council, Monday 21 October 2024

Mr President, I wish to raise an issue on adjournment regarding TasPorts – I was considering including this in my noting of the GAA Report, however it is a little unclear as to when I will be able to deliver that.

Due to this uncertainty and after listening to the TasPorts CEO on ABC radio I found his comments not reflective of the experience of many TasPorts key stakeholders and customers in my electorate – many of which I will speak about when I note the Report hopefully in coming weeks – and on this occasion I am not speaking about King Island.

Mr President, I wish to raise an issue on behalf of the West Coast community about TasPorts actions in another of my small LGAs.

Mr President, by way of background, I am aware that in June 2015 West Coast Council, Tasmanian Ports Corporation (TasPorts) and the Department of State Growth released the Strahan Waterfront Precinct Plan.

The Plan represented a consolidated vision by all land managers and users for the renewal of the Strahan waterfront precinct, providing a focus for regional tourism activities based on an authentic working port experience as well as the continuing growth of fishing and marine activities on Tasmania’s West Coast.

In 2021 West Coast Council received a total of $3.375 million from State and Federal Governments to deliver the final stage of the Precinct Plan - an upgrade of the Strahan Waterfront, including the slipway.

Following extensive negotiations TasPorts advised that they viewed the Strahan waterfront as a stranded community asset and indicated that the project could not proceed within the required timeframes if the asset remained under their ownership. Mr President, this is an infrastructure company responsible for building and maintaining port assets.

In January 2023 TasPorts suggested that the Strahan waterfront precinct be transferred to West Coast Council to allow the upgrades to proceed in line with the Precinct Plan that they had jointly developed.

Mr President, I know that West Coast Council were put in a position where it had no choice other than to accept the transfer of the Wharf, to ensure delivery of the Strahan Waterfront Re-Development Project and avoid forfeiting the $3.375 million already secured for the project.

The transfer occurred in October 2023 and included the passenger terminal, the wharf deck, marina berths, finger pier, little dock, fisherman’s wharf, the slip yard and associated fixtures, plant and equipment. It also included the adjoining seabed but excluded navigational aids, including Entrance Island Lighthouse, Bonnet Island Lighthouse, Regatta Point and channel navigational aids and lead lights throughout Macquarie Harbour and the Gordon River.

At the time TasPorts said to the West Coast Council:

• “The Strahan Wharf is a regionally remote and isolated asset that predominantly services the local tourism industry and fishing fleet while TasPorts is a commercial entity set up to facilitate freight and logistics solutions to benefit the community and create value for customers.”

• “The assets are not essential to TasPorts functions, but they are of considerable value to the community and it’s therefore great to be able to gift them to the Council for the future use of the West Coast community.” (Strahan wharf assets in safe community hands (tasports.com.au)

Mr President, it is important to note that in making this decision, TasPorts did not provide a condition assessment or other detailed information necessary to understand the asset value to the West Coast Council.

Without this the West Coast Council didn’t, and still doesn’t have a true understanding of the financial implications of the transfer and cannot know when major renewal works will be required or their likely cost.

In addition, no funds were transferred from TasPorts to support future renewal of the facility.

Tasmanian Government’s Government Business Governance Framework expects Government Businesses to be ethical in their operations and dealings and act with the highest standards of probity.

Mr President, the approach taken with the Strahan Waterfront falls well below that standard.

• Refusing to progress the Strahan Waterfront Upgrade (developed as part of a joint precinct plan with TasPorts) putting at risk $3.75m in funding from State and Federal Government.

• Leaving West Coast Council with no option other than to accept the transfer of the Strahan Wharf.

• Failing to provide a condition assessment or asset valuation to enable a true understanding of the financial implications of the transfer or future renewal work that might be required.

Mr President, the conduct is particularly unconscionable noting that West Coast Council is a small remote council where both the population and rates base are in significant long-term decline, severely restricting WCC’s ability to generate revenue and sustain an asset such as the Strahan Wharf.

Mr President, I will be engaging with the new Minister for Infrastructure after Wednesday when he is sworn in about this and other key issues associated with TasPorts poor customer and stakeholder relations hoping we can find a way to completely alter the manner in which TasPorts respond to the requirements of being a State Owned Company.

Mr President, TasPorts need to operate in the corporate world yes, but they also need to remember they are owned by the people of Tasmania and should be working, that is truly and actually working, effectively, rather than telling the media that is what they do, to ensure their employees and the interests of the people of Tasmania are at the centre of their focus.