PRIME MINISTER
FFROM TH'II ACTING YPPIME MINISTER, MR LIONEL BOWEN
WEDNESD) AY,_ 23RD NOVEMBER 1983 FOR MEDIA
The. Tasmanian Premier, Mr Gray -has created a false impression
ov ; er the fundincG of $ 5.3 millio.-n w,. orth of imrproVEments in the
South-West and West Coast of the Statc-.
Mr Gray, through the Tasmanian news media, has suggested that
thre State Government is irijec,-.. nJ theo fu:. 1. i into~ the , rea.
In fact, the $ 5.3 million allccatcd in the Federal Budqet
1! Ldn-r the interim financial cremtwihsar.
wrote to the Premi. er on Tueosday, ta: ~ k iv. i1-f inal
appuroval for the project-, suhL.ñ.: t mec for fundinrg undOer [. m1(
acrreemen t by the Tasm-ianiJan Government.
The $ 1.7 million for the Queens town sewutrage upgradinn3 ad
been approved in theo interim financial pack. q.. e but thec
Commonwealth had agreed to increa-. th-e ~ i~ nto 2 million
, A~ tr thec State had submittc-0 revi,-sed ost. ma, t .
The $ 3.2 million. for tourist facilities, as p-irt of S, 5 million
so approved under the interir . nni4ap. eft
The people of Tasmania should be aware that he $ 5.3 million is
not extra money, but funds already approved.
The only new development Is thaT_ specific projects for which
ii: would be used, have now been agreed upon.
1I: should be made clear tha'-the $ 5.3 million Commonwealth
iniLiated, and the projects Commonwealth fiinded.
The State Government is rcq' ir(; d oni. tr, sugcrest projcC S ' or
approval.
A copy of the letter which was srnt-to Mlr Gray' on~ Tues.-ay is
attached.
ACTING PRIME MINI õ TER.
TIhc flhn Rlin~
HOBiART TVAS 7000
Mdear Promier
I refer to your lettVers 1133 O-tober and 10 November inj
which you out fcor-wiird1, in rjoncto the Commonweal1th'is
I-feC f 2 il ion in 98 1anBI $ S3m million in 1984/ 85,
a number of propo ; als ior thc, i'eelopm,:' it of tourist
facik tries in the South We: Jt.
In considerinite., p: oposals he Commonwealth has taken
a broad vi -' tho developme. n t I. requirements of the
West Coast area agjains: t hu background of the expected
increase in tourist. interest following the accession of
a si~ gnificant area~ to Lhe. World Heritage List. On this
basis, and SUbje-c. Lo) t ti follouwing cxceptions and
observations, we have decided to agree to your proposals.
First, we note that two of the projects put forward in
your second letter lie within the World Heritage Area.
These are the Cynthia Bay CL.: ke St Clair) jetty and boat
ramp, and Lhe Cradle Mountain power scheme. In view of
the Commonwealth's rosoonsioililties relating to protection
of the Area it will be necessary, before considering these..,
projects further, to have more detailed informnation on them
in order that their impact on thio natural environment cdan
be assessed. I Suggest that to this end the Minister for
Home Affairs and Environment, the Hon. Barry Cohen, be.
in touch with his Tasmanian counterpart, the Hon. Geoff
Pra rsallI.
In relation to Strahan port development we take it t~
the assistance to bc provided will be additiirhal -4. o ths'
which your Government has alreadly put n train. I refer
iere to the 5 year developmental plan for tbe-State
fishing industry, announced in t~ e Siatn idudgett, whichl,
included $ 108,000 ; n 1983/ 84 for a port: plan,. new sltpW4l
: radle, and amnnitien '.-Aock at Strafian. On th~ e Strahg1o~
water supply csrewtr;-, ge proposal We. propose ' to'' opernte bt'
the baisis of the-. lo~ wer I igure of $-980, 000. / 2
I' I
I ' I
I If
I; I urn now to your letter of 22 September Poncer~~ g-
Queenstown sewerage, project in whicn you reg red tQo
increase in estimated costs from hqiS1 .7mmi If .4nof~
by the Commonwealth to some rrillion, an4 ' stges141
that 25 man years of employment . woi~ d be morq. appropk
t,'-an the 30 ' man years envisaged ir," thq Cornmoqy$ palthf.
proposal. While the comments I h4X4 made.. abpyQ , are J:
to hisproject also, we are preppr d to cptteXy.
in the light, of the particular circum~ st. ancog. of this-R.
and on the basiis that they aire,. to': b trcat. eid's f inal -r
entimates. ./ 3 t
I have noted your Comments abour the preliminary'. atVX,,,
of the proposals anti the difficulties of determifin. g. r* i'
amount of employment Lhit . il1 be created. WhilejiI)&,
understand this di f ficuity, I tl~ irk i t is irnportant*. t . iq
recognise that the Commonweail thIs principal objective, li
providing financial ' issistalc Lindel the Interimh Finaflc. al
Aqicement for tourism . rnd othtur nhort--. erm projects s
to alleviate employment disrupt.) on arising from termination
of the GordorI-helow-Frarkl in project. In this regard'
your Government has botn ofiored wide .1iscretion in the
selection of tourism projects to be funded under the
Agreement, subject only to satisfying the overall employment
target of 110 inan-yeair.
in accepting your initial toui-; t pro) j c t proposals, the
Commonwealth has boon motivated by a desire to get action
in hand to improve the tourist potential of the South West
as quickly as poss; ible. To this end we are thus agreeing
to certain pro. posals for example, the acquisition of the
Imperial Hlotel at Queonstown which in themselves will
have no or little dire-ct employment implications.
While. some degree of flex Ibility is appropriate in
_ valuating the employment-creating potential of individual
? rojects, I believe that, having regard to the Commonwealth
overall obje-ctives and resnonsibilitie;,' it would not be
appropriate to vary the employment target of 110 man ypa rs
which we envisaged in proposing this two-year program.-, To
,: he extent that some of the a* cvo projects may. fall short.
of constitut'ing jobs a-t the rroquired rate, other projec ts:
the $ 5 million prograro would have to make up the
bal ance.
might also remark that some o: the projects you r-i,-r; C
nominated would, under normal circumstances, be part'~
funded by way of user charge:-of somne form or' ar'othe4
This would be appropri_: ite whorctiieaib euesO~
most of theibenefit of the servi'ces or fclte~ r
These are essential ly management de~ cisions for. Your'~
Covernment ut it would seem to be. in your StateA
test interest to seek appropriate cost recovery if. f4%
4-o other reason than to extend more, widely the benef4ji
to be derivedc from the available f iinds;
The tourism pro) e,* cts and tie Queenstown sewerage project
wili be funded from the: Commonwealth appropriation
which providus for payments to Tasmania in 1983-84 in
relation to thu termination of the Gordon River Power
Development stage IT. Accordingly, it will be necessary
to authoris Lth( expenditure by adding further schedules
to the Interim [ inaricil Agreement and making appropriate
anmertdments to Clnusc 4 of the Agreement. Drafts of the
nec, ssary amendments will be forwarded in the near future.
I look forward to your acceptance of the proposals I have
put in this letter and to the early commencement of the
projects. I propose that officers of our respective Governments
discuss detailed arrangements and, where Ministerial
involvement is dc-sir: ble, that these be between Mr Cohen
and Mr Brown for ' he( Commonwealth and Mr Pearsall.
Yours sincerely
LIONEL 8OWEN
Lionel Bowen
' Ily.