Hobart’s status as the gateway to Antarctica is under threat due to the “exorbitant cost” of the redevelopment of Macquarie Wharf 6, the federal environment minister has warned.
In a letter to Premier Jeremy Rockliff, Environment Minister Tanya Plibersek said the redevelopment of Macquarie Wharf 6 was a “fundamental requirement” if Hobart was to remain the home of the research ship the RSV Nuyina.
However, she said TasPorts’ estimated cost of more than $515 million over 30 years did not offer value for money.
“This is … 14 times more than the Commonwealth currently pays and there have been no costings provided to back up this request,” Ms Plibersek wrote.
“The Australian government cannot accept that these are reasonable commercial terms.”
Ms Plibersek said the government required a “revised pathway to maintain the Port of Hobart as the home port for the Australian Antarctic Program” and asked the premier to intervene.
“As an agreement with TasPorts is not currently possible, I seek your intervention and ongoing support to ensure that we can finalise negotiations on long-term arrangements for RSV Nuyina and the Australian Antarctic Program so they continue to be based in Hobart,” Ms Plibersek wrote.
“I remain committed to Hobart remaining the gateway to the Antarctic, but it appears that the Tasmanian government agencies are determined to stand in the way of securing this development.”
Ms Plibersek said the “stalled negotiation” came on top of TasPorts’ decision to prevent the ship travelling under the Tasman Bridge, meaning it had to travel to Burnie to refuel at a cost of about $900,000 a year to taxpayers.
Signing off on her letter, Ms Plibersek said she looked forward to reaching a solution that would deliver “certainty for Hobart as Australia’s home port for RSV Nuyina, with an appropriate refuelling option”, throwing in that this would allow the Tasmanian government to access the $240 million in federal funding for the Macquarie Precinct redevelopment, including the proposed stadium.
We’ll work through this ‘like adults’, premier says
In question time on Thursday, Tasmanian Labor leader Dean Winter accused the state government of putting more than 1,000 jobs at risk.
“TasPorts has not only failed to progress the upgrades at Macquarie Wharf, that are needed to berth the new icebreaker, but it’s also attempting to increase charges by the Antarctic Division to more than 14 times what is currently paid,” Mr Winter said.
“The conduct of TasPorts has been so unreasonable the Commonwealth believes a new agreement to secure a new Antarctic base is, and I quote, ‘not currently possible’.”
Mr Winter has questioned the government’s ability to deliver the ports project.
“Why have you allowed TasPorts to put 1,000 jobs at risk and [an] entire Antarctic industry or have you lost control of yet another government business and another major economic project?” he said.
Mr Rockliff said his government was on the “side of team Tasmania” and would stand up to Canberra.
“We will always be standing up for Tasmania against those in Canberra that want to dud us time and time again,” he said.
“We are working through these matters. Clearly, the commitment that was made to the minister yesterday is to Hobart being the Antarctic base and we will work through these matters like adults.
“We will work through with TasPorts, the state government, state growth and indeed Canberra as well. We recognise the value of Antarctica and the precinct opportunity, but also berth 6, Wharf 6 as well.”
Mr Rockliff said TasPorts had made “every opportunity to ensure Tasmania gets a good deal”.
Liberal senator for Tasmania Jonno Duniam also weighed in, arguing Ms Plibersek “has been exposed as not being genuine in her claims that she wants to keep Tasmania as the gateway to Antarctica”.
“So ‘genuine’ are her claims that it now turns out that the minister released her letter to one media outlet nearly half an hour before the Tasmanian government even had the letter,” he said.
“If Ms Plibersek is so committed to resolving this issue, why is she intent on conducting negotiations through the media?
“It’s clear that either Ms Plibersek is interested in ripping away our Antarctic gateway status or is, at best, just playing politics.”
In a statement, TasPorts said it was committed to Hobart being a gateway to Antarctica and the Southern Ocean and was ready to continue negotiations.
Chief executive officer Anthony Donald said the leak of the letter was an example of the federal government avoiding commercial negotiations.
“The costs are reflective of the detailed design works, which are specific and a bespoke request by the AAD. The level of investment is reflective of the infrastructure requirements,” he said.
“We are not simply talking about reparation of the wharf structure but a bespoke design that is very specific to their needs.
“The real question given AAD’s understanding of the costs of their bespoke design requirements is what has been included in the federal budget. This clarity will enable a negotiation to be had in earnest.”
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