Chris Griffin, Tourism Northern Tasmania’s chief executive, said the proposed rail trail had been in the works for 10 years. 

“From TNT’s perspective, we have always supported the rail trail all the way from the first study done in 2013 right through to securing the federal funding,” he said. 

“I guess the limitations we’ve had in reviewing the train idea is that there hasn’t been a business case.”

It was revealed on Friday that the two reports the government had received about the rail line’s best use were contradictory and a third report would be needed.  

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Dorset mayor Greg Howard said the council would have to apply for another extension to the federal funding it had been promised because of the latest delay.

“We had to have substantial commencement by January of next year and obviously that cant happen,” Cr Howard said. 

“We’ve already had two or three extensions to the grant before, so we’ll just have to apply for another one. I can’t see why they wouldn’t give it to us especially seeing as none of the hold ups are our fault.”

Chairman of the North East Residents and Farmers incorporation, who are proposing the heritage rail, Stuart Bryce said he was surprised it had come to this. 

“I suspect that the government has realised that the original report regarding the cycle trail by Northern Tasmanian Development dated February 2014 was never subject to any scrutiny and we asked for that scrutiny be included in the $50,000 viability study commissioned in July this year.”

Mr Bryce said the government “prolonging” the debate showed lack of commitment.