The new Tasmanian premier, David Bartlett, today said the future of the state's key project, the pulp mill, was in the hands of its proponents and their financiers.
His predecessor, Paul Lennon, tied his political fortunes closely to the mill, which appears to have failed to gain the backing of the ANZ bank.
"I haven't seen a proposal for public infrastructure," Mr Bartlett said.
"Cabinet will consider it on its merits. But largely, or in fact totally, this project will stand and fall on whether or not the company is able to get finances for this project."
Mr Bartlett, 40, was elected unopposed by the Tasmanian Labor caucus today after his predecessor, Paul Lennon, stepped aside.
Mr Lennon, who said it was time for generational change in the Government, revealed himself to have been an unwilling holder of the premiership.
In his resignation press conference this morning, he said he would have preferred to remain deputy.
The premiership came to him four years ago when he was deputy to Jim Bacon, who died suddenly of lung cancer.
But Mr Lennon lost community support over scandals that forced the resignations of two deputies, as well as his backing for the mill.
Last week, it was reported ANZ, the long-time banker for timber giant Gunns, had withdrawn funding for the controversial $2 billion pulp mill in the Tamar Valley.
Mr Bartlett was sworn in as Tasmania's new premier at a brief ceremony at Government House in Hobart.
Lara Giddings, the Health and Human Services Minister, has been sworn in as his deputy, replacing Mr Bartlett in that role.