Fears the Canberra chaos could hurt chances of City Deal

SOUTHERN Tasmanian political leaders worry the instability in the Federal Government could delay the finalisation of the Hobart City Deal.

Hobart Lord Mayor Ron Christie. Picture: LUKE BOWDEN

SOUTHERN Tasmanian political leaders worry the instability in the Federal Government could delay the finalisation of the Hobart City Deal.

Former prime minister Malcolm Turnbull was a big supporter of the City Deal, but after Mr Turnbull was dumped on Friday, Hobart Lord Mayor Ron Christie fears the project could be deferred as the Liberals look to heal their wounds.

But senior Tasmanian Liberal Senator Eric Abetz has assured Tasmanians the City Deal would remain on track.

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“The Prime Minister has made it clear that key programs commenced under the Federal Liberal Government will continue and I am confident that the Government will continue to work to implement the Hobart City Deal,” Senator Abetz said.

A multimillion-dollar Hobart City Deal — involving injections of cash through a partnership of federal, state and local government, plus private enterprise — could potentially include projects such as a $400 million STEM centre for UTAS, the $100 million Northern Suburbs light rail and a $40 million Antarctic Precinct at Macquarie Point.

An agreement was due to be finalised by the end of the year after the Federal Government signed a memorandum of understanding with Premier Will Hodgman in January.

But Ald Christie said Liberal infighting could threaten that timeline.

“All roads were leading to finalising the Hobart City Deal by December,” Ald Christie said. “We need the City Deal this year.”

Former prime minister Malcolm Turnbull and Premier Will Hodgman at the announcement of the Hobart City Deal. Picture: LUKE BOWDEN

Clarence Mayor Doug Chipman said he was hopeful the City Deal would go ahead and it would be a shame if, because of events in Canberra last week, the opportunity was lost.

Hobart alderman and mayoral candidate Bill Harvey said the City Deal was critical to solve Hobart’s problems around affordable housing and sustainable transport.

Independent federal MP for Denison Andrew Wilkie hoped his “good friendship” with new Treasurer Josh Frydenberg would help his push for more federal investment in Hobart, including the City Deal.

“I certainly don’t expect any current commitments like the new Bridgewater Bridge to be dishonoured, despite the destructive behaviour of most Tasmanian Liberal senators who backed Peter Dutton,” Mr Wilkie said.

Tasmanian Liberal senators Eric Abetz, Jonathon Duniam and David Bushby played key roles in the leadership crisis and backed Dutton, who went down 45-40 in the party room vote to new PM Scott Morrison.

Federal Labor MP for Franklin Julie Collins said the alignment of Tasmanian Liberal senators meant the state could lose under a Scott Morrison-led Government.

“To date, the much-talked about Hobart City Deal still had no funding committed,” she said “Sadly, the Liberals’ chaos and instability will not help progress the City Deal.”

Senator Duniam said of the City Deal: “I’ll be pushing for it to be signed ASAP.”

Tasmanian Premier Will Hodgman’s spokesman said: “The Tasmanian Government looks forward to working constructively with Prime Minister Scott Morrison to continue to deliver on projects and positive results for Tasmania.”