Treasurer backs railway and bike trail proposals for North-East rail corridor

THE bitter battle over a disused rail corridor in the state’s North-East has been settled by the State Government, but the ruling has been met with disappointment.

The Dorset Council has welcomed the government’s decision on the disused rail corridor from Coldwater Creek to Scottsdale but the Launceston and North East Railway expressed disappointment.

A BATTLE over a disused rail corridor in the North-East has been settled by the State Government, but the ruling has been met with disappointment.

Dorset Council has been seeking to build a trail to convey cyclists and walkers along a 64km disused railway corridor from Coldwater Creek to Scottsdale. The Launceston and North East Railway wants to run a tourism railway.

Treasurer Peter Gutwein on Thursday said that after a Treasury analysis, he had decided to divide the contested line. He gave 21.5km of the line between Coldwater Creek and Lilydale to the railway proponents and 42.5km between Scottsdale and Lilydale to the rail trail proposal. The tourism rail proposal would also have access to 52km of current TasRail operational line.

“Allowing both parties to develop their projects will both minimise the costs and risks involved to each party and maximise the chances of both projects becoming viable tourist attractions,” Mr Gutwein said.

Wendy McLennan, from the Launceston and North East Railway, said the decision was “disappointing” and “nonsensical”.

“The disappointment is that the legislation says if it’s viable to run a railway on a railway line, then it can’t be converted for another use,” she said.

“Before they can convert it to another use, it has to go to both houses of Parliament to get approval.”

She said the group would lobby the Legislative Council to block the plan.

Dorset Mayor Greg Howard welcomed the decision.

“I think it’s a sensible compromise, it allows both of the proposals to move forward,” he said.

He said the rail trail proposal had the potential to drive jobs growth in Scottsdale and could be rolled out quickly.

The government investigation noted that Dorset council had raised about $4.5 million towards extending the existing rail trail but the rail proponents had not prepared a business case, had done no market research to support its demand projections, had not declared its cash reserves and had made low estimates of costs and high estimates of patronage.

“There is a significant risk that L & NER will face a funding shortfall and may seek public funding,” the report said.