The Hon Martin Ferguson MP, Minister for Tourism and Dick Adams, Member for Lyons have announced Budget funding of $50,000 to help boost domestic tourism in New Norfolk and outer Hobart.
Minister Ferguson said: "This funding will capitalise on the tourist rail potential of this region and is to be provided to the Derwent Valley Rail Preservation Association to undertake refurbishment works on a newly purchased H5 locomotive now at New Norfolk, in preparation for local tourist rail services.
"The relocation of the rail freight services to Brighton provides the opportunity to consider if and how the rail line south of Brighton to Hobart Port could be used for tourist rail activities.
"The refurbishment of the H5 locomotive will enhance the capacity of the region to realise the community's long-standing desire to see the line operate as a tourist facility."
Member for Lyons, Dick Adams, said: "The tourism potential of this project is large in having wide-reaching benefits to the towns adjoining the rail line and also in providing a value-add experience which will help increase tourist visits.
"In 2007, more than 801,000 day trips were taken in the Southern tourism region (which includes the Derwent Valley area outside Hobart) bringing an estimated $41 million to local economies in the region through day trip expenditure.
"This funding will also grow the niche tourism market of train enthusiasts and enable tourists and locals alike to experience Tasmania's beauty through the nostalgic perspective of train travel.
"This Government is passionate about enhancing the capacity of business diversity in the region," he said.