The Hodgman Government came to office with a commitment to turn around those state owned companies that were under-performing, and the 2015-16 Annual Reports tabled today for TT-Line and TasPorts confirm we are delivering on that commitment.
The TT-Line 2015-16 Annual Report confirms an extraordinary turnaround in passenger numbers since we came to office, with 418,831 passengers making the journey across Bass Strait in the reporting period.
This is an amazing 27 per cent increase over the last three years, and comes after passenger numbers declined to just 330,000 in the final year of the Labor-Green government.
It’s a clear endorsement of the Government’s strategy to reinvigorate the Spirits through the complete refurbishment of both vessels, the doubling of day sailings over the three-year period and the 13 per cent reduction in average fare prices.
It shows what can be achieved when a majority Liberal Government has a positive plan for Tasmania’s future, and stands in stark contrast to Bryan Green who has opposed our plans from the start.
The increased numbers are resulting in greater cash flow, and TT-Line’s after-tax profit for the year was $18.8 million- the second highest profit after-tax result achieved by the company.
Cash and cash equivalents at the end of the financial year stood at more than $110 million, an increase of more than $20 million over the year, which means TT-Line is able to pay a special dividend of $40 million to be locked away towards the replacement of the Spirits that is required in 2022-23.
The turnaround in fortunes is mirrored at TasPorts, and I am delighted that their 2015-16 Annual Report confirms a return to profit of $1.5 million and a shareholder dividend of $1.3 million- the first time TasPorts has achieved a profit since 2010.
Pleasingly, revenue has increased to 9.4 per cent to $95 million, with the profit being built on increase in freight volumes through Tasmanian ports of 7.7 per cent, largely driven by forestry exports, which increased by 24 per cent.
Underpinning that growth was the Burnie Woodchip Export terminal, which was acquired in 2014 and is being used by TasPorts as a multi-user facility.
Profitable, dividend-paying state owned companies are an unqualified benefit to Tasmania and its people, and I congratulate the Boards, management and employees of both TT-Line and TasPorts for their strong results in 2015-16