Last week Mr Hutchinson backed the Meander Valley Council's move to get thoroughbred investors to look at Northern Tasmania as an alternative location to traditional interstate stud farms threatened by mining operations.

He hopes others will follow his example to realise a wonderful opportunity for the state.

ABC Rural reported earlier this month that horse breeders and investors from overseas were turning their backs on the New South Wales Hunter Valley because they were worried about the expansion of coal mining.

It is understood that the racing manager for an Arab Sheik flew over the Hunter Valley in a helicopter and was astonished by the proximity of the coal mines to the horse studs and was now looking for another base for breeding operations in the Southern Hemisphere.

Meander Valley Mayor Craig Perkins said the regrettable situation that was occurring in the Hunter Valley provided a real opportunity for Tasmania to put its considerable case to become a leading thoroughbred breeding destination.

"But we need support from our political and industry leaders to share the vision of what this high-value industry could be in five to 10 years' time," Cr Perkins said.

Mr Hutchinson said Tasmania -in particular Northern Tasmania - had the ideal requirements to become a breeding destination.

"We have a history of breeding here, the right climate, plenty of water and we are closer to Melbourne and the main racing venues than other places interstate.

"I would hope that we can encourage investors to look closely at the advantages of establishing and investing in Tasmania for the long term."

Mr Hutchinson will write to political and industry leaders to call on them to get behind the move to encourage thoroughbred racing investors here.