Work on 'shovel-ready project' in Burnie yet to begin three years after funding announcement

Prime Minister Scott Morrison in 2019 announced a $173 million package for Tasmanian infrastructure projects which included upgrades to the Bass and Midland highways and a new shiploader at Burnie port.

He said at the time that more than $95 million of this money would be spent over the following 18 months.

"We've identified projects that are shovel-ready and are getting them moving so Tasmanians can benefit from better infrastructure and the jobs and investment that come with it," Mr Morrison said.

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It was revealed at Senate estimates hearings on Monday that the shiploader project was not shovel-ready as has been proposed.

Labor senator Anne Urquhart said the Infrastructure Australia website in December stated the project was expected to commence construction in late 2021 and be completed by late 2022.

"But that website now says that the project is expected to commence construction in early 2022 to be completed by early 2024," she said.

Senator Urquhart questioned Infrastructure Department representatives on why the shiploader project was classified as shovel-ready when it was not.

Infrastructure Department first assistant secretary Philip Smith said the government had requested a list of shovel-ready projects from the states to formulate the stimilus package.

"They were provided and they would have had various commencement dates in there," he said.

"We would have taken that pretty much on face value because they were deemed to be shovel-ready by the states."

The Senate committee for rural and regional affairs heard the federal government was awaiting a business case for the Cradle Mountain cableway from the state government almost fours years since $30 million in funding was announced for the project.

Meghan Hibbert, from the Infrastructure Department, said the business case being prepared by the government would need to have necessary approvals and go through community consultation.

"What I can say is that we're unable to execute our agreement because we're waiting for information from the Tasmanian government," she said.

Ms Hibbert said all projects for the government's community development grants program needed to be completed and acquitted by the end of the 2026 financial year, but any government on the day had the choice to extend beyond that deadline.

Senate estimates hearings will resume on Tuesday.