Mr Green and Mr White have appeared in Hobart Magistrates Court, each charged with conspiracy and interfering with an executive officer.
Also appearing was ministerial adviser Guy Nicholson, who is charged with one count of conspiracy.
The charges relate to an illegal deal between the state government and the privately-owned building accreditation company, the Tasmanian Compliance Corporation (TCC).
The three were charged following a three month Tasmania Police investigation into the deal between Mr Green and TCC co-owner Mr White, which was signed in February, just days before the March state election was called.
The deal guaranteed the TCC an exclusive three-year monopoly contract with the Tasmanian government. It meant all builders, architects, surveyors, draftsmen and engineers working in the Tasmanian building industry had to be accredited by the TCC.
Solicitor-General Bill Bale later found the deal to be illegal and it was annulled by Premier Paul Lennon.
Mr White, a Labor member of the Tasmanian parliament from 1986 to 1999, pleaded not guilty to both charges.
Neither Mr Green nor Mr Nicholson entered pleas.
All three were ordered to reappear in court on January 10, 2007.
Government having a ‘bad day’
"Obviously it's not a good day for the government," Mr Lennon admitted, as he defended accusations of poor leadership and a cover-up.
"We are at this point today because I referred these matters to the Director of Public Prosecutions, because it was the right thing to do."
Mr Green, from Burnie, was forced to step down as deputy premier and a minister in July pending an inquiry into the TCC scandal.
He was told his positions would be held vacant until investigations were concluded.
But since he has now been charged, all of his positions would be filled on Friday after an emergency Labor caucus meeting, Mr Lennon said.
Mr Green will remain an MP on Labor's backbench while his conspiracy charges are heard.