Spirit of Tasmania ferry replacement plan questioned as fare cuts flagged

The Tasmanian Government has been questioned about how it will meet the cost of replacing the two Spirit of Tasmania ferries.

The Government has announced the TT-Line will spend tens of millions of dollars refurbishing the existing vessels and plans to reduce fares.

Fares on the state-owned ferries will be cut as part of an effort to grow the state's tourism industry.

On Monday, cabinet signed off on plans to reduce fares on the Bass Strait passenger ferries by almost 15 per cent over four years.

The Tasmanian Government hoped the plan would attract an extra 64,000 passengers and inject $220 million a year by 2023.

There will be 42 extra day sailings by 2018 and and the two ships on the run between Devonport and Melbourne will be refurbished by late next year.

The exact cost of the upgrade has not been revealed, but Infrastructure Minister Rene Hidding said in a statement it would be in the tens of millions of dollars.

It will include refurbishment of the dining and bar areas, new seating, upgrades in cabins and wi-fi and internet streaming access.

The Government still intends to meet a commitment by the previous government to replace the ships by 2023.

Greens MP Nick McKim has used a parliamentary hearing to question where the money will come from.

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Spirit of Tasmania ferry replacement plan questioned as fare cuts flagged