Tasmanian ferry operator of the TT-line hits back at claims that company is insolvent

ABC NEWS (Australia)

The chair of spirit of Tasmania ferry operator TT-line has hit back at claims by the auditor-general that the company is insolvent. Ken Kanofski described the argument as "absurd" during a parliamentary hearing on Monday. But didn't rule out seeking further government bailouts in the future.

Transcript

00:00A bailout to a Finnish shipbuilder, new vessels without a berth, storage costs in Scotland

00:08and Geelong, and now an insolvency argument playing out publicly with Tasmania's Auditor-General.

00:15TT Line might have a new board, but it's not yet out of troubled waters.

00:19No one's pretending there's not challenges here.

00:23We're not pretending there's not challenges.

00:25The company's debt limit was increased to $1.4 billion in July, and the Tasmanian government

00:31gave it $75 million in the recent budget.

00:35Earlier this month, Auditor-General Martin Thompson released a report arguing that TT Line

00:40did not have the ability to pay its debts in the long term, and so was insolvent.

00:46Are you aware of anything occurring that will or has made them solvent again?

00:52The short answer is no.

00:53Today was TT Line's opportunity to respond, Chair Ken Konofsky arguing that it was unreasonable

00:59to base a company's solvency on its long-term debt repayments rather than shorter term.

01:05This would be thousands, maybe tens of thousands of companies every year.

01:08Clearly this would be an absurd interpretation of the law.

01:12And that, ultimately, Tasmania's Treasurer has discretion over how to deal with the state-owned

01:17company's debt, and the government wouldn't let it go under.

01:21It would lose control of the assets and the services it provides.

01:25It would be perverse.

01:25We will back TT Line as a state identity. Are you suggesting we walk away from TT Line?

01:31I'm not at all. I'm trying to get to the bottom of this mess.

01:33The dispute is far from over. In a letter sent via lawyers yesterday,

01:38TT Line told the Auditor-General that his comments are causing real harm to the company

01:43and its stakeholders.

01:45TT Line will provide the government with options for its long-term financial viability in January,

01:51and further taxpayer-funded bailouts have not been ruled out.

01:55All that was the use of fraud.

01:59You can put a lot of money out.

02:01You don't want to know about what you're saying.

02:03There were fraudulent bailouts.

02:05You didn't want to pay for the process of duty.

02:07You don't want to pay for interest.

02:09You don't want to pay for it because they're not going to pay for you.

02:11It's not going to pay for interest, but if you've got an taxation,

02:15you'd be an analyst.

02:17You don't want to pay for interest at the time.

02:18You don't want to pay for interest, and if you'd pay for interest.

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