An agreement to transfer $150 million for the relocation of the University of Tasmania campus to Inveresk has slowed, with the federal government waiting since September 2016, for a business case.
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The Examiner can reveal $150 million from the federal government remains unallocated, with the University of Tasmania not yet providing a business case for the transfer.
In September last year, the Department of Education and Training asked university representatives to provide a business case to Infrastructure Australia to allow the transfer of taxpayer funding.
The university aimed to have the business case completed by March of this year, but it has yet to be provided to the federal government.
Minister for Education and Training Simon Birmingham said the government grant was “ready to go” as soon as the university finalised its business case.
"The promised funding is ready to roll and all UTAS needs to do is dot the i's and cross the t's to ensure that $150 million of taxpayer funding will be used as effectively as possible,” he said.
“Australians rightly expect governments to have business cases to justify the use of the taxpayer money they provide to different projects.”
Senator Birmingham said the government’s commitment to the Burnie and Launceston projects would help drive education and employment outcomes.
“I hope UTAS submits the business case as soon as possible so that work can get underway,” he said.
The University of Tasmania has defended the time taken to sign a deed of agreement with the federal government for its $260 million project, citing the complex nature of the agreement as a reason for the delay.
University of Tasmania executive director for transformation, Craig Barling, said the federal funding was committed at the last election.
“Since that time, the university has been working closely with our partners to move quickly yet deliberately to take this project from a once-in-a-generation proposal to a transformative reality,” he said.
“A project of this size and scale has many benefits and also many technical complexities.”
Mr Barling said the university had completed its strategic business case.
“We are continuing to work closely with the Prime Minister’s Department to finalise the detail of the agreement, including the submission of the strategic business case,” he said.
City of Launceston mayor, Albert van Zetten, said there was “no concerns” with the timing of the project.
“The process of drafting and finalising deed agreements is routine and often goes on in the background of major projects as other elements of those projects are progressed,” he said.
“We are very happy with the proactive and productive way in which the university is working with the council, and we're confident in the various processes that are being undertaken to realise this intergenerational opportunity in our city.”
In June the state government transferred $10 million for the university to assist with preliminary design, engineering and planning work.
Treasurer Peter Gutwein said a deed between the state government and the university had been signed, facilitating the transfer.
“We are finalising the deed for Burnie as we speak and the Launceston deed is currently being developed,” he said.
“As with any project of this size, it’s important to get the details right.
“The project is on track and we have absolutely no doubt that the necessary paperwork will be finalised shortly.”
Launceston Chamber of Commerce chief executive Neil Grose acknowledged the importance of due diligence but called for the speed of the process to increase.
“We would urge both parties to get together, get the details sorted and get the project underway,” he said.