Gov warns over fed watchdog

"If the Australian Government want to take a capital city mainland attitude to the Tasmanian economy, which will hurt our job prospects in our state, that's why we'll be watching them like a hawk," Mr Ferguson said.

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Federal Minister for Environment and Water, Tanya Plibersek, announced plans for the new environmental watchdog this week.

While Mr Ferguson said he had "no problem" with the federal government setting up its own EPA, he was concerned that the new body might especially get in the way of the state's resource industries.

"I mean harvesting timber, I mean a very sustainable mining industry, I mean our salmon industry ... Tasmania has got it right so I'll be concerned about anything the Australian Government does to make it more difficult to get things done," he said.

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His comments came as new figures from the Australian Bureau of Statistics showed the state's economy expanded by 1.6 per cent in the three months to the end of September, second only to the Northern Territory's 2.7 per cent growth.

Mr Ferguson said the "strong" result came on the back of the state's 3.5 per cent growth in the year to June, and despite the "significant headwinds" of soaring inflation and the war in Ukraine, which pushed up petrol, food and fertilizer prices throughout the world.

"Despite those cost of living increases, despite the [Reserve Bank of Australia's decision to] increase interest rates, we're continuing to see that economic output occurring, we're continuing to see really strong jobs figures for Tasmania," he said.

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According to the ABS, higher consumer spending, bigger investment in machinery and equipment, as well as a modest rebound in housing construction contributed to the growth spurt.

It was offset by stamp duty revenues that were 7.7 per cent lower, reflecting less activity in the housing market, and a 4.1 per cent decrease in non-housing construction.

Mr Ferguson said the government had been expecting the fall in state revenue from stamp duty, but suggested the moderation might be offset by "swings and roundabouts" from the state's growing population and its receipts of GST.

He also said the government has "no current plans" to introduce a broad-based land tax, but it was open to reforms.

"If they were in the state interest and they can show that we'd be better off in net terms in an overall sense, we're prepared to explore or consider those, but at the moment though there are no such plans."

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