Labor has moved a motion of no confidence in new energy minister Nick Duigan, claiming the decision to phase back construction of a power transmission project would hit industry in the state.
State power grid company TasNetworks confirmed earlier this month that its North West Transmission Developments project (NWTD) would now be built in two stages, rather than one.
Under the new timetable, construction of a key link between Burnie and Staverton that passes by a proposed e-fuels plant is now in limbo, pending a decision about the second leg of the Marinus Link interconnector.
Opposition leader Rebecca White on Tuesday questioned whether the move to postpone construction of the one inland leg was the result of financial mismanagement of TasNetworks.
"Can you confirm that the key reason for the winding back of the North West Transmission Developments is that TasCorp has concerns about the borrowings that would be required by TasNetworks," she asked during Question Time.
Energy Minister Nick Duigan failed to answer the question, but said the priorities of the NWTD project changed following the decision to build one cable for the Marinus Link interconnector.
Ms White later moved a no-confidence motion against Mr Duigan, saying the decision to delay NWTD would disadvantage industries such as HIH Global, the company proposing to build the e-fuels plant in Hampshire in the path of the now-delayed Burnie and Staverton link.
"We have grave concerns about the ability of this minister to undertake his duties ... when we are in energy deficit and we have got serious proponents with projects ready to invest and proceed in the state, all now put at risk," she said.
"There is no certainty for them, all of that $10 billion is at risk."
It was Mr Duigan's first bruising test in the chamber following his ascension to cabinet last month after the resignation of former Attorney-General Elise Archer.
In the ensuing debate over the no-confidence motion, Deputy Premier Michael Ferguson said Mr Duigan had adjusted well to the new role, engaging with stakeholders over the NWTD decision.
He said the reason that energy in the state was finely balanced was due to the economic growth seen under the Liberal government over the past decade.
The vote seeking leave to debate the motion later failed after Labor failed to secure the two-thirds majority of the chamber needed.