With all eyes on the state's budget on Thursday, Mr Bailey's announcement on Sunday relayed some of the concerns businesses had raised as the state recovers from COVID-19.

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He said the government had done a great job in providing opportunities for businesses, but it must continue through development.

"It's not good enough just to wait and hope that we work our way out of this situation. We need some really clever policy," he said.

"What we need to see are a few things, firstly we need to see additional construction, we need to see more infrastructure spend. We have had lots of promises, we need the money to be actually put out the door.

"We need a full court press with local government too, to make sure that any money from developers is really worked through the system. It's not good enough to have councillors that are knocking back developments even though their officers are approving it."

Mr Bailey said a clear timeline needed to be laid out for major developments for at least the next 12 months to stop peaks and troughs.

When asked how it related to the budget, with most major projects already allocated funding, Mr Bailey said a clear strategy should be part of the budget commitments to deliver them.

"In Tasmania across many years we've got very good at saying no, we now need to learn how to say yes to projects," he said.

"That's what we are hearing from our businesses, we are hearing the concern about the end of these major projects and again how they need to have some confidence going forward."

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