A $12 million election promise for a new Launceston bus interchange has been returned to the state budget as a saving after the site it was tied to fell through.
The money was committed at the 2024 state election for a new interchange at the privately owned Paterson Street car park.
But that plan collapsed after a council study found the site unsafe for buses and pedestrians, while a nearby church, childcare business and state government office also opposed the move.
The council has since turned its attention back to St John Street, where the interchange has been located for years.
Councillors in May endorsed two options for the street after a rival Civic Square proposal was scrapped when Metro Tasmania and the Department of State Growth, now Building Tasmania, said they could not support it.
Infrastructure and Transport Minister Kerry Vincent told parliament this week the $12 million had only ever been intended for the Paterson Street project.
“This was a brand-new facility to take buses off the road in a key central point in the city,” he said.
Vincent said the council did not proceed with that project, so no funding was provided and the money was instead returned to the budget as a saving.
He said bus stop infrastructure was a council responsibility and the council could seek a state contribution once it finalised its new plans.
Independent Launceston MLC Rosemary Armitage had asked why the government withdrew its support and whether the money could instead be redirected to the St John Street stops.
Vincent said the council was welcome to make a funding request through the normal budget process once its plans were complete.
Council documents published this month show the interchange is still being progressed, with the project estimated to cost between $25 million and $30 million.
They also show the council is still hoping to secure the $12 million from the state.
Its risk assessment describes the funding as an election commitment made by the premier and says talks with his office “have been ongoing to update them on the project”.
The council expects to choose a preferred site in April 2027.
