State and federal Liberal governments are joining forces to lead Tasmania out of the economic doldrums, Prime Minister Tony Abbott says.
At a farming property near Evandale in the state's north on Thursday Mr Abbott committed to a joint funding arrangement for an irrigation scheme designed to protect Tasmania's agricultural sector from drought.
Industries including viticulture, dairy, grazing, cropping, and walnuts are due to benefit from the scheme, which will also provide a secure supply of drinking water.
It is expected to deliver about an extra 40,000 megalitres of water to landholders and communities across Tasmania, creating 150 full-time jobs.
"I think we are on the cusp of an economic revival here in this state," Mr Abbott said.
"I've said for a long time now that Tasmania is a great place to visit, it is a great place to live, but we want it to be a great place to work as well."
Since the Liberal party came to power in March 2014 the government reports 7000 new jobs have been created across the state.
For several years Tasmania has claimed some of the country's worst unemployment statistics, particularly among young people.
However recent figures showed the state bucked an upward national trend.
"Measures that the coalition government in Canberra is putting in place, complementing the work of the Tasmanian Liberal government, are helping to bring about this economic revival," the prime minister said.
He credited the Korean free trade agreement for a surge in cherry exports and said across Asia Tasmanian seafood is much sought after.
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