$3500M dam compensation sought

Press, 24 August 1983, Page 6

$3500M dam compensation sought

NZPA Melbourne The Tasmanian Government is demanding sAust3.s billion from the Federal Government to compensate for the scrapping of the Franklin dam. The Tasmanian Premier, Mr Robin Gray, said on Monday that anything less, “would be short-changing the entire Tasmanian community.” Mr Gray has divided the compensation bill into four categories: 0 ?Aust3ooo million to cover the difference in generating electricity by thermal means instead of hydro power for the 60 year life of the cancelled project. 0 sAust3Bs million to provide an amount of generating capacity similar to the cancelled project. 0 ?Aust6o million for reimbursement of costs already incurred on the Gor-

don-below-Franklin scheme. © An unstated amount in compensation for the loss of the resource potential of the south-west area.

The Prime Minister, Mr Bob Hawke, has written to Mr Gray outlining offers of money for several projects as compensation for abandoning the dam scheme.

The Commonwealth has offered to give up to sAust2 million this financial year and sAust3 million next’ financial year for tourist facilities in south-west Tasmania, sAustl.7 million for a sewerage project in Queenstown, and sAust3 million for strengthening the runway at Hobart airport. The Commonwealth is also prepared to discuss with Tasmania a possible approach to providing a block funding that could be applied to projects of Tasmania’s choice.