Australia’s last Liberal state government has slid into minority rule after two MPs quit amid concerns about the controversial plan for an AFL stadium in Hobart.

Bass MP Lara Alexander and Lyons MP John Tucker resigned from the Liberal Party to sit as independents on Friday.

Both have aired concerns about state debt and government transparency around the planned $715 million Macquarie Point Stadium.

Mr Tucker also has issues with the Bass Strait Marinus Link transmission project.

“I’ve always been brought up to be honest and if something isn’t right, stand up,” Mr Tucker said in Launceston on Friday.

Ms Alexander said she hoped constituents who had voted for her on a party basis would understand it was a difficult decision.

“I have to be truthful to what I believe in,” she said.

‘Obviously disappointed’

The resignations have up-ended the Tasmanian Liberals’ tight majority, leaving Premier Jeremy Rockliff to lead a government with 11 out of 25 seats in the House of Assembly. Mr Rockliff said his government would “get on with the job”, despite the upheaval.

“I am obviously disappointed, but this is their decision,” he said.

“We will continue getting on with the job of building a strong economy and a safe caring community.”

He said Friday was a “challenging day”, but ruled out any possibility of an early election.

Since Labor won the NSW election in March, Tasmania is home to the last Liberal government in Australia.

But the construction of a new stadium in Hobart – a condition of the AFL awarding Tasmania a team licence to join the league – has been a contentious issue as the state struggles with a housing crisis.

Prime Minister Anthony Albanese was heckled in Hobart a fortnight ago when he joined Mr Rockcliff to announce $240 million in funding for the stadium precinct.

Tasmania’s net debt, which has risen from $1.5 billion in 2021/22 to $3 billion in 2022/23, is expected to reach more than $5.2b in 2025/26.

On Friday, Mr Albanese defended stadium proposal. He said plans to upgrade the Macquarie Point site went back to at least 2012, when he was infrastructure minister under Julia Gillard.

“Our cities need to provide opportunity for economic activity as well as lifting up the quality of life,” Mr Albanese said in Sydney. “This site has been left derelict for too long.”

Future uncertain

Mr Tucker and Ms Alexander said they would not support a vote of no confidence in the government, but it remains a possibility.

“I don’t envisage that that will happen, that’s what we are thinking but who knows what the future will hold?” Mr Tucker said.

“We’re not planning on bringing the government down, if that’s what you’re asking us.”

Deputy Premier Michael Ferguson said the business of government would continue.

“Our absolute focus remains on getting things done and delivering the things Tasmanians care about,” he said.

In their statement, neither Mr Rockliff nor Mr Ferguson mentioned the stadium or alleged transparency issues at the heart of the split.

– with AAP