The quid pro quo in 2003 for the extension of Federal Hotel’s exclusive poker machine license allowing an expansion into pubs and clubs was it would assist in underwriting the company’s significant tourism investment strategy, increase employment from the existing level of 2,000 and benefit all Tasmanian’s with the flow on effects.
The mandatory development at Coles Bay which promised 180 jobs was delivered five years late and has been the only significant investment in new assets. Others assets added have all been existing operations, with more outlaid on bottle shops and gaming venues, not usually considered tourist drawcards, than on accommodation venues.
But the most striking and regular outlay showing no sign of diminution has been dividends to shareholders.
Borrowing limits are no longer a matter of distant concern. Cash flow pressures are mounting with less being spent on capital improvements.
Something had to give…..
Read the rest on John Lawrence’s website, Tasfintalk, here
• Yesterday on TT: Abt Railway closure plan a setback for the West Coast
• Tim Morris: Immediate action needed on Abt Rail taskforce
• Facebook: SAVE The West Coast Wilderness Railway Tasmania
• Abt plan urgently needed to prevent skills exodus
• Tim Morris: Green support Queenstown’s railway working group motion
