The program is part of a $100 million Northern Economic Stimulus Package which Premier Will Hodgman will detail at a Tasmanian Chamber of Commerce and Industry function in Launceston on Tuesday.

The package is expected to bring forward a number of job-creating public infrastructure projects and lift the Northern economy which is struggling compared to statewide activity and booming capital city works.

The North’s unemployment rate in August was 7.7 per cent – 1.1 per cent above the state’s average.

Treasurer Peter Gutwein said the government would trial the $60 million interest-free loans program, giving Northern and North-West council cash up front for infrastructure projects.

He said the government would consider spreading the loans program statewide if it proved successful.

“The Tasmanian Government is committed to investing in infrastructure because it creates jobs during the construction phase and provides long-lasting benefits to the community,” Mr Gutwein said.

“While local councils are committed to investing in infrastructure, they sometimes find it difficult to invest as much as they would like due to financial constraints.

“This will allow councils to accelerate their existing five-year infrastructure plans, which will help spread investment right across the region from Marrawah to Musselroe Bay.”

Mr Gutwein said the loans scheme was expected to support over 700 jobs if the full $60 million was taken up by councils.

Northern Economic Stimulus Package will include government support for tourism, industry, schools and affordable housing projects.

Opposition Leader Bryan Green said Labor looked forward to seeing a list of all-new projects when stimulus package details were released today.

He said it was disappointing that funding for water and sewerage infrastructure had already been ruled out.