Government confirms finance for Royal Hobart Hospital revamp under review

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The Tasmanian Treasurer has confirmed the financing of the Royal Hobart Hospital redevelopment is under review.

Healthcare workers and builders are worried the Government could ultimately scale down the $580 million state and federally-funded redevelopment.

Last week, the Government called an urgent halt to work on the project, citing major cost blowouts under Labor.

It is refusing to set a new start date, and will not say whether the full project will proceed.

The Government has received $290 million from the Commonwealth for the project, but is yet to sign a key building contract.

Treasuer Peter Gutwein says project’s finance being reviewed.

Mr Gutwein would not say whether that federal money would need to be handed back if the project was scaled down.

“In regards to the financing of that project and, again depending on where you want to go with this particular question, we are having a look at this project at the moment,” he said.

“When the advice is available to cabinet, cabinet will then consider the issues around this project and then the Government will provide a position.”

Source: ABC