-i) AUST A JLh
PRIME MINISTER
FOR MEDIA 29 July 1983
The Primc Minister, Mr. Hawke, confirmed today that the
Federal Government would be terminating financial assistance
to Tasmania for construction of the Crotty Road.
The Crotty Road, which leads off the Lyell Highway east of
Gormanston, had been intended as the principal access to the
Gordon-below-Franklin dam, and a significant part of the
workforce engaged on the dam project had been working on the
road at the time of the High Court's decision of July 1.
Mr. Hawke said: " In the letter I wrote to the Tasmanian
Premier, Mr. Gray, on the day the High Court's decision was
announced, I suggested that our two Governments allow work on
the Crotty Road to continue for the very immediate future, in
order to maintain the workforce and to keep options open for
further development if that were subsequently agreed.
" Since that time, Mr. Gray has informed me that his Government
would be opposed to the road being extended to Kelly Basin, on
Macquarie Harbour.
" Mr. Gray has also informed me that, consequent on the
Tasmanian Government's recently announced intention to proceed
with the King River hydro scheme, the road would in time be
partially flooded.
" In the light of that advice, the Commonwealth has had little
option but to end its assistance to the State for construction
of the road.
Mr. Hawke said the Government realised the decision would
cause some disruption and uncertainty for those who had been
working on the Crotty Road.
" I regret that very much, but the circumstances have made it
unavoidable. " I assure them Chat the Commonwealth is pressing ahead with
the preparation of co-operative arrangements with Tasmania
for alternative work opportunities for those formerly employed
on the Gordon-below-Franklin project, and I am sure that, with
goodwill on all sides, present problems will soon be overcome." / 2
2-
Mr. Hawke said in the meantime, the Federal Government had
agreed to extend for anQther month the arrangements for income
maintenance for HEC employees and for financial assistance for
contractors, including assistance for co1htractors' employees.
" There is therefore no need for concern on that account."
Mr. Hawke said that there would be need for appropriate
clearing-up activities on the Crotty Road project, and
officials of the two Governments would be conferring urgently
to determine what was to be done.
officials would also be examining, on a case-by-case basis, I
the situation of contractors affected by the termination of
work on the Gordon-below-Franklin project, including the
phasing out of work on the Crotty Road. fil
AM1
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