A MAJORITY LIBERAL GOVERNMENT WILL:
- Secure 500 local jobs at Incat by providing $100 million in finance, on an interest-free basis, for three years to construct a 120 metre high-speed vesselCreate an additional 120-150 direct jobs over the next 12-18 months, including 60 more apprenticeships
- Secure around 250 indirect jobs in local supply chains for small and medium-sized business in Tasmania
The Tasmanian Liberals support Tasmanian business and industry to create the jobs Tasmanians need.
Incat has operated in Tasmania for almost 50 years and has led the global market in innovative design and construction of world-class, light-weight, high-speed aluminium vessels.
They are a significant Tasmanian employer, with over 500 people working on the design, manufacture, sale and charter of their vessels.
For each vessel constructed at Incat in Tasmania, around 65% of the total sales price is spent and retained in Tasmania, circulating throughout our economy.
This equates to some $95 million being retained in Tasmania when a vessel of this size is constructed.
The COVID-19 global border closures over the past year have impacted Incat’s traditional customers in the international ferry market.
Moving to support the underwriting of the new Incat vessel will secure both a significant local workforce and local supply chains.
If the vessel is not sold or chartered after three years, including the construction period, the loan will revert to commercial interest rates payable by Incat.Incat is confident of future sale and/or charter demand in the global ferry market moving forward.
Currently, Incat is concluding two large vessels for existing customers, with deliveries due in July 2021 and March 2022.
They also hold deposit funds for two new overseas customers, but these orders have been placed on hold due to the uncertainty resulting from the COVID-19 pandemic.
The Tasmanian Liberals understand the need to retain Incat’s highly-skilled workforce and to avoid redundancies post-completion of the vessels currently under construction.
Under the loan arrangements, the government’s funds will be provided to a Special Purpose Vehicle.Security will be granted over the contract with Incat and all work in progress generated pursuant to that contract.
During the period of vessel construction, Incat will work to source either a forward sale of the vessel from the Special Purpose Vehicle to a third party buyer, or alternatively will seek to negotiate a medium to long term charter of the vessel to an experienced and financially acceptable operator.
Incat’s preference and focus will be an outright sale at delivery wherein any funding provided to construct the vessel will be repaid in full.
Current work underway right now:
- $400,000 in the 2020-21 Budget to implement the Tasmanian Advanced Manufacturing Action Plan and guide our State’s manufacturing future, including joining the Industry Capability Network to support businesses to identify and individually or collectively tender for opportunities across Australia and New Zealand
Our record in Government:
- Released Tasmania’s first Tasmanian Advanced Manufacturing Action Plan in 2016, and the second in 2020. These Action Plans have resulted in –
- $51 million in increased sales
- $36.7 million in private investment
- 435 jobs for Tasmanians and forecast of a further 490 jobs by 2022
- The opening of a Tasmanian Advanced Manufacturing Centre of Excellence
- 139 Tasmanian manufacturers registered on new web portal to showcase Tasmanian capabilities
- Launched the Tasmanian Defence Industry Directory in 2020.
- Launceston Tasmania’s first Defence Strategy in 2016, updated in 2018.
- Launched the Tasmanian Maritime Campaign in 2020.
- Took Tasmania’s largest ever defence services and manufacturing contingent to the Pacific 2019 International Maritime Exposition in Sydney – resulting in the awarding of over 23 defence and national security supply contracts ($32 million total value).
- Launched the Advanced Manufacturing Market Expansion Program and the Innovation and Growth Voucher system in 2016.
Under the last Labor-Green Government between 2010 and 2014:
- The unemployment rate reached 8.6%
- 10,400 jobs were lost between February 2011 and October 2013
- Youth unemployment reached a high of 20.6% in December 2013
$100 million in finance, secured against the new ship, to be provided with interest costs of $6m in total over a three-year period