<p>The $1.8m in Tasmanian Government loans to the Abt Railway will be repaid next month under a proposed Federal Hotels Group buy-out.</p> <p>Premier Jim Bacon said the sale, which can not be officially approved until after the state election, is the best outcome for the railway.</p> <p>Federal Group concluded negotiations to purchase the lease from the present operator last week.</p> <p>"The deal secures the long-term future of the wilderness railway," Mr Bacon said.</p> <p>"Federal Hotels has the experience, the capital and the enthusiasm to make the railway a tourism icon for Tasmania."</p> <p>Track and associated infrastructure will remain in government ownership.</p> <p>Federal transport minister John Anderson has bought into the state election and condemned the Tasmanian management of the railway.</p> <p>The Labor government presided over secret loan deals, could not account for its spending and allowed the project to run into an endless series of financial and operational debacles, he said last week.</p> <p>Mr Anderson has stepped up the pressure and this week publicly accused the Tasmanian Government of misleading the Commonwealth over $1.8m in loans to the Abt Railway.</p> <p>Progress reports the Tasmanian Government submitted did not disclose the loans, he said.</p> <p>The Federal Government contributed more than $20m to the project and under the terms of the funding deal was supposed to be kept up-to-date.</p> <p>Mr Anderson said the final Commonwealth payment could now be suspended until all details of the loans are disclosed.</p> <br />
