Commonwealth funding for private business is rare but Tasmania is a special case, Prime Minister Tony Abbott says.
In Hobart on Friday morning Mr Abbott opened a Vodafone call centre, offering jobs to an extra 300 people, making the telco giant one of the largest private employers in the island state.
The former Labor government made a pledge of $4 million to the project, in conjunction with $12 million investment by Vodafone.
"I have to say that direct Commonwealth grants to business are rightly rare, but in this particular case the former government decided that the economic conditions of Tasmania did make this justified," Mr Abbott said at the opening.
"And I have got to say that because of the partnership investment by Vodafone, that very much seems to be the case."
In September 2013 Tasmania's jobless figure was the highest in the nation, at 8.5 per cent, and both Labor and the coalition made election commitments to improving the economy.
"The best thing governments can do is create the conditions for strong private sector business to get on with the job of doing what they do best," Mr Abbott said.
The prime minister will attend a meeting of the Tasmanian Economic Council before he travels to the north of the state where he will reportedly make a $200 million funding announcement to boost the Bass Strait freight subsidy.
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