Doubts over Cradle Mountain cableway future after funding deadline missed

The cableway was part of the 2016 Cradle Mountain master plan. (Supplied: Cradle Coast Authority)

• In short: The Tasmanian government has missed a deadline to provide information to the Commonwealth about the proposed cableway for Cradle Mountain and funding has been withdrawn
• What's next? State Development Minister Guy Barnett says a business case has now been provided and he has requested the funding be restored

The Commonwealth has withdrawn a $30 million grant from the Cradle Mountain Cableway after the Tasmanian government failed to meet the April deadline for providing required information.

Former prime minister Malcolm Turnbull announced the funding ahead of the Braddon by-election in 2018, with the money coming from the Community Development Grants Programme.

But last October, the federal Labor government announced that uncontracted funding under this grant scheme would need to be contracted by April, and completed by June 2026.

The grant scheme would then end.

In February, the Commonwealth confirmed it had not received a business case.

The viewing platform which is part of the master plan opened in January. (ABC News: Erin Cooper-Douglas)

Tasmanian Greens senator Nick McKim requested an update, and was told by the Commonwealth that the $30 million had been withdrawn.

The Commonwealth's response read:

"Since the department did not receive the required information from the Tasmanian Government by the 28 April 2023, it was unable to complete an assessment, and the funding commitment was withdrawn from the Cradle Mountain Cableway project."

The cableway was part of the 2016 Cradle Mountain master plan, but federal Labor questioned the progress on the project in 2022.

It was intended to connect the Cradle Mountain visitor centre to Dove Lake for all-weather access.

Mr McKim said the project should now be cancelled.

"The project never stacked up, and never had a social licence," he said.

"It was simply a pipe-dream of the develop-at-all-costs brigade, and a lazy attempt at pork barrelling."

"Tasmania's wilderness is far too precious to be despoiled for profit."

Minster requests reinstatement

The new viewing shelter was designed to blend into the landscape. (ABC News: Erin Cooper-Douglas)

The Tasmanian government has not ruled out attempting to proceed with the cableway.

It matched the $30 million grant, and its own funding remained on the table.

State Development Minister Guy Barnett said he had written to the Commonwealth requesting that the $30 million be reinstated, with a business case provided. 

"The Tasmanian government has completed the business case, which includes a comprehensive analysis of potential cable way routes, to determine what is technically feasible and compatible with the World Heritage status of this iconic area," he said in a statement.

The business case now estimates the project would cost $190 million, based on "materials and other construction costs" in a remote location.

State Labor slammed the government for not providing a business case for five years.

Braddon MP Anita Dow said the government had been too preoccupied with the Macquarie Point stadium and AFL discussions.

"If [Premier] Jeremy Rockliff wasn't so obsessed with building a stadium in Hobart, maybe funding for a project in his own electorate of Braddon wouldn't have been withdrawn," she said.