Silt in the Tamar had reached critical levels, affecting tourism, business and recreation, it was revealed yesterday.
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Lady Stelfox skipper Geoff Hayes said that up to three trips a day had to be cancelled because of silt.
Southern Marine Shiplift's ship repair operations would be affected unless action was taken.
Rowers had to wait for the tide to come in to get out of their shells.
Sailors from the Tamar Yacht Club could sail only two hours either side of high tide.
Environment and Land Management Minister Peter Hodgman said the silt level was ''a very serious issue''.
''I believe there is a very sound argument that the build-up could cause devastation to Launceston, with rising waters going into the CBD and surrounding suburbs,'' Mr Hodgman said.
Opposition Leader Jim Bacon would address the problem in a policy to be released in the next three weeks, a spokesman said.
The recently formed Silt Action Group has called for Federal, State and local government to take the problem seriously.
It was revealed at an action group meeting last week that the owner of Kings Wharf, Southern Marine Shiplift, had been forced to knock back a contract involving a tug because of the silt problem near the Synchrolift.
Southern Marine Shiplift general manager Mark Stuart declined to comment yesterday.
Mr Hayes said the Lady Stelfox had to tour on the Gorge for 20 minutes instead of the traditional tour down Home Reach if low tide fell in the middle of the day.
''We also have to work around tides with the charter tours and the night cruises,'' he said.
The Penny Royal World had 60,000 to 80,000 tourists a year and most had tickets that included a cruise.
He said that many people were disappointed not to cruise on the Tamar.
''We often get a comment from them saying: 'What utter neglect and why doesn't someone do something about it'?''
Mr Hayes said the river basin had been dredged in the past year but silt had returned worse than ever.
Members of the Silt Action Group said the problem has worsened visibly in recent months.
At Stephensons Bend, near the Launceston Church Grammar School rowing sheds, the channel had narrowed by 50m.
''When the next one-in-20-year flood comes, the constricted flow of the river will mean a flood that floods the Northern Outlet and into Invermay,'' said committee member John O' May.
He said that rowers could not walk across the mud near the Tamar Rowing Club pontoon and could not get on to the river for almost two hours either side of low tide.
''(Soil expert) Dr Owen Ingles said that if a rower fell into the mud they would be lucky to keep their nose above the surface,'' he said.
Action group member Rod Oliver said a major study needed to be done.
He called on the Federal Government to re- allocate some of the funds from the National Heritage Trust's Rivercare Tasmania project.
''Rivercare Tasmania had $8.75 million spread across the Derwent, King and Tamar rivers and only $40,000 has been allocated to looking at silt,'' he said.
