The Tasmanian Association of Tourist Railways is to be supported by the state government via contributions to the cost of insurance.

In the first year, the Government will pay 90% of the premium cost to the Association. This will reduce to 10% over a seven year period.

The total is expected to amount to around $600,000.

“Insurance premium levels for heritage rail operators are significant and can be an inhibitor to commencing or expanding operations,” Premier and Minister for Tourism Peter Gutwein said.

“As we continue along the road to recovery from COVID-19, the Tasmanian Government will do everything we can to explore ways to support our Tasmanian tourism industry.”