The party in its Economic Directions Statement, released last May, stated the party would commit $40 million to fund the investigation, design and construction of a new correctional facility in Northern Tasmania.

At the time, Labor leader Rebecca White said the centre would be an “alternative” to Risdon Prison.

When criticised by the government that $40 million was not enough to fund a new prison, Labor’s finance spokesman Scott Bacon in June said the money would kick-start construction and the party would be able to draw on unallocated infrastructure money if needed.

But Ms White, on Monday, said the funding commitment was to replace the Launceston’s Reception Prison to provide a modern workplace for correctional officers and a more appropriate environment for prisoners.

"While Labor does not want to replicate Risdon in the North, the investigation is a chance to examine how an updated facility can take pressure off the broader corrections system,” she said.

"We would investigate how a new fit-for-purpose facility in the North could integrate with Risdon in a more effective way than the current reception prison does.” 

Ms White said $340 million committed by the Liberals to build a new Northern prison and remand centre in Hobart would be better spent on health and affordable housing.

Corrections Minister Elise said the party had walked away from its prison promise.

“In doing so, she has also walked away from over 3000 construction jobs in Northern Tasmania,” she said.

Ms White said the Liberals had so far failed to release modelling to support their jobs claim.

The government has committed to spending $270 million for a new Northern prison for 270 inmates and $70 million for a new standalone 70-bed remand centre at Risdon Prison.