A taxpayer funded grant to pay Laughs of Launnie comedy festival's debts has been finalised.
The inaugural event was given a $120,000 grant through the State Growth Department, but in May The Examiner revealed thousands of dollars were owed to a number of artists and festival contractors who hadn't been paid within contractual deadlines.
Festival directors Scott Plummer and Chris Franklin were contacted for comment.
Mounting pressure about the potentially negative impact the festival had on Tasmania's reputation in the national and international comedy scene led to Treasurer Peter Gutwein announcing the state government would pay the outstanding debts through a new deed.
That deed was for an additional $91,784, which brought the festival's total grant money to more than $211,000.
In total, the taxpayer money handed over to the festival will fall just shy of the original $215,000 requested by organisers.
Right to information documents released to The Examiner showed no evidence of the festival's budget being adjusted after the government agreed to a $120,000 grant instead of the amount requested.
A spokesperson for the Treasurer said the matter had recently concluded and creditors would be paid shortly.
The extra cash comes with a number of conditions, including that no directors, or anyone immediately related to them, would receive any of the additional funds to be provided, and if the event should happen again, or if the intellectual property for the event was used or sold, event organisers must begin discussions regarding options to repay the state.
Tasmanian Labor deputy leader Michelle O'Byrne said the Treasurer still needed to answer questions about what due diligence was undertaken before providing the initial grant to the festival.
In an email sent on April 23 titled "LOL Festival Overview", Mr Plummer references the shortfall and addressed the Treasurer by his first name.
"Peter that we needed the exact amount we originally budgeted was a huge concern for the directors and we appreciated the support we got, even though we knew we would lose money," he said.
"We went from four staff to 93 overnight and this was a shock that the operational costs were seriously bigger than anticipated or budgeted.
"Now that we have produced year one, the real amount is now able to be planned for in future years and dramatically reduced with greater focus on HR and ensuring sponsorship is sought to cover the amount."
The festival also received a $20,000 grant from the City of Launceston council and $10,000 from regional councils to put on shows at Deloraine, St Helens, George Town, Scottsdale, and Devonport.
Laughs of Launnie was held from March 18 to 24, with a total of 110 shows planned over the six days. But it is understood a number of the scheduled shows were cancelled due to poor ticket sales.