Premier unveils jobs plan

The Tasmanian Government is going a further $44 million into the red to stimulate the economy.

It is spending $25 million on business grants, increasing the first home builder grant, funding small infrastructure projects throughout state and introducing a payroll tax rebate for new jobs created.

It predicts the plan will create more than 3,000 jobs.

The Premier, Lara Giddings, says the time is right for the stimulus package.

"We've seen a pick up in GST which has helped," she said.

"We also had some drop in our state revenues and what we can do by stimulating jobs is actually help our state revenues as well." The Government has also announced a $36 million increase in spending on child protection services and $10 million for corrective services.

Ms Giddings says the unemployment rate of 6.8 per cent is too high.

She says it is a Government plan, not a Labor election platform.

"What the jobs package is today is a modest push in the right direction, it's not just an all-out free spend-for-all," she said.

The state will match the $7,000 federal grant with an $8,000 first home builders grant.

The housing industry welcomes the plan.

The Housing Industry Association's Stuart Clues says housing construction needs a boost, after falling by about 30 per cent so far this year.

"We were starting to get whispers late last week that the Government was going to make these moves," he said.

"I'm hoping this will all be activated by January 1, if not beforehand." Mr Clues is confident the grant will not lead to gouging by construction companies.

"Our industry is not in a position at the moment to be just jumping up prices." "They're all actively competing for work and this will simply be a welcome salvation.

"It won't be an opportunity to ratchet up prices.

You'll see people actively competing for every home that's being offered.

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