Future Commonwealth support for a cycle trail to Scottsdale is under a cloud, with the government and opposition pledging to keep options open.
The decision to deflect the project came after two conflicting reports about the viability of a heritage rail service operating on the disused railway.
Almost $1.5 million has been awarded to the Dorset Council through the federal government’s Stronger Regions fund for the construction of a cycle path along the rail corridor.
With project milestones tied with the grant, its future is unclear.
Fiona Nash, the Minister responsible for the Stronger Regions fund, was on Friday found to be a British citizen, and ineligible to be elected.
Launceston Liberal Senator David Bushby was unsure whether the delay in the project would affect the Stronger Regions grant to the Dorset Council.
“This fund is a merit-based fund and by consequence, a competitive selection process was followed,” he said.
"Dorset Council was successful in their application as their proposal was sound and strongly argued as well as within the guidelines for funding.
"I look forward to continuing to work with Dorset Council as well as the State Government on this matter to deliver the best possible outcome for residents of the north east."
Prior to last year’s federal election Labor promised $1.7 million to complete a four-kilometre “missing link” for a cycle trail between Scottsdale and Launceston.
But with the state government’s deferral keeping the push for a heritage rail service alive, Labor Senator Helen Polley said the party would reassess its commitment to a cycle path.
“Because it was the last election, everything that we committed then is under review,” she said.
“Definitely, we’d look favourably at this from the last election.”
Senator Polley was supportive of the state government taking time to assess the potential benefits of heritage rail.
”You’ve got to do the proper costings and there’s got to be a proper funding model,” she said.
She acknowledged the community’s views “change from time to time”, and said Labor would consider the best use for the corridor.
“We will certainly be keeping our options open because our decisions are driven by what the community sees as the best investment for them,” she said.
Senator Polley said her and colleague, Bass MHR, Ross Hart, would speak to residents about their views.