The Federal Government’s carbon tax could force up fares on the TT-Line’s Bass Strait ferries.
The company is looking at a fuel surcharge but it can not yet reveal the extent of the tax’s impact.
CEO Charles Griplas told a government business hearing its fuel supplier, Shell, is yet to determine new prices under the tax.
Fuel makes up a quarter of TT-Line’s costs.
Mr Griplas says the company is investigating several strategies to minimise the impact on fares.
“We certainly, internally, have been looking at a fuel surcharge.”
“Our vessels go into dry dock and we’ve got the super polymer paints so you get a better glide on the vessels, which will reduce emissions. Propellers are super polished.
“We’ve also been in discussion with our fuel supplier in terms of lowering the siphon content of the fuel that we receive.”
Infrastructure Minister David O’Byrne says while TT-Line is working to minimise impact on fares, there may be some impost.
“We’re not going to guarantee that we’re not going to pass on some or all of those costs.”
TT-Line says it is continuing negotiations with Shell and hopes to have a clear impact statement by February.
