The Tasmanian Government was moving today to terminate Southern Shipping's Flinders Island service contract after the freight operator went into receivership. Tasmanian infrastructure minister Graeme Sturges said today that this would allow for a complete review of the freight services to the island.The move came as it emerged that PFK Chartered Accountants and Business Advisers would handle the receivership of the troubled private company, owned by Geoffrey Gabriel.

Mr Sturges said services would continue through Les Dick-owned LD Shipping, the fall-back option that he said last year would keep the Ferneaux group of islands supplied.The government would talk with PFK with a view to facilitating "a couple of special sailings" of Southern Shipping's Southern Condor to help with moving high-season livestock exports.

The Southern Condor would need repairs to allow Marine and Safety Tasmania to give it a survey certificate and the state government would help with that also, if the receivers were amenable to the plan.A spokesman for PKF said he could not comment on what Mr Sturges had said and would not say who the accountant was working for.Earlier, PKF had said that Altan Djenab and Dennis Turner had been appointed joint and several receivers and managers of Southern Shipping.

"The key objective of the receivers and managers' appointment is to implement an immediate national marketing campaign to sell the assets of the business in order to maximise asset realisations for the benefit of all creditors," it added. "It was the intention of the receivers and managers to work closely with the Tasmanian Government to assign the shipping contract to a suitable purchaser to ensure the continuity of the service post receivership.

"However, the government has advised of its intention to terminate the contract as it has arranged an alternate shipping company to service the route.