Tasmania Nears Deal To Lease New Ferry For Ukrainian Refugees In Scotland

The Tasmanian government is in advanced negotiations to lease its newly built ferry, Spirit of Tasmania IV, to the Scottish government for housing Ukrainian refugees.

The vessel has been docked at the Port of Leith in Scotland since November 2024 due to delays in constructing a berth at its home port of Devonport.

Per reports, the discussions between the Tasmanian government, state-owned ferry operator TT-Line, and the Scottish government are nearing completion, with an official announcement expected soon.

However, Tasmanian Premier Jeremy Rockliff has refused to confirm the status of negotiations, stating that TT-Line is handling the discussions.

“There are a range of things that could have been on the table for discussion, and TT-Line is handling the discussions, and TT-Line is engaged in negotiations,” Rockliff said.

He added that negotiations could take time and that he would not comment further until an outcome was reached.

The possible lease has sparked controversy in Tasmania, with opposition leaders criticising the plan. Labour Leader Dean Winter has called it “farcical” and urged the government to bring the ferry back home.

“We’ve seen the premier bail out a Finnish shipbuilder with $80 million of Tasmanian taxpayer dollars, forget to build a berth, and now he wants to use our ship as a floating refugee camp. This is completely outrageous,” Winter said.

He argued that Spirit IV is a ferry, not a cruise liner, and is not designed for long-term living.

Andrew Jenner, a member of the Jacqui Lambie Network, also opposed, questioning why the government was prioritising leasing the vessel to Scotland instead of using it to address Tasmania’s housing crisis.

“There are more than 2,000 Tasmanians without a home. Spirit IV could house most of them. Why is that not the priority for the government?” Jenner asked.

Spirit of Tasmania IV was originally intended to transport passengers and freight across the Bass Strait by 2024.

However, due to delays in completing the required port infrastructure at Devonport, the ferry has remained idle, with its service now postponed until 2027. Meanwhile, Tasmania’s second new ferry, Spirit of Tasmania V, is still under construction in Finland.

The Scottish government has previously housed Ukrainian refugees on the MS Victoria, which accommodates 1,319 people over a year. That operation reportedly cost approximately $45.2 million (£22.5 million) per month.

While the cost of leasing Spirit IV has not been disclosed, it offers less capacity, with 301 cabins compared to the MS Victoria’s 739.

A spokesperson for the Tasmanian government said they are focused on securing a deal that benefits Tasmanian taxpayers. “If this does not evaluate, the ship will be relocated to Tasmania,” the spokesperson stated.

While negotiations continue, Premier Rockliff has declined to comment on whether a lease agreement is close to being finalised. “I’m not going to confirm or influence the negotiations,” he said.

References: Abc.net, pulsetasmania

Source: Maritime Shipping News