''The state government is focused on growing jobs in the private sector rather than shuffling public servants around the state, which would not provide any net benefit to the economy,'' Ms Giddings said yesterday. 

Ms Giddings was responding to a plea from the Launceston Chamber of Commerce to relocate government departments or government business enterprises to help arrest a dramatic wages decline in the region. 

The Liberal Party says it is actively considering the idea, but refused to elaborate on its plans yesterday. 

The MAIB, TasRail and Tasmanian Irrigation already operate out of Launceston.

Nearly 6700 public servants are employed in Northern Tasmania. The figure includes thousands of teachers, nurses and doctors and employees at regional branches of government departments. 

Ms Giddings said all state government departments across the country are based in capital cities. 

''Relocation of entire departments is not practical given the location of Parliament and the need to liaise closely with other arms of government,'' Ms Giddings said. 

She said the cost of relocating an entire department would be ''significant''. 

''That is not to mention the disruption to service delivery and dislocation of existing staff,'' she said. 

She highlighted the $24.5 million jobs package, which included an expansion of George Town Seafoods, a lighting upgrade at Aurora Stadium, the extension of the Seaport boardwalk and construction of the Hollybank mountain bike park. 

The Greens did not respond.