Rudd's Hobart announcement deflating

PRIME Minister Kevin Rudd's affection for Tasmania seems a lot stronger than Labor's spending commitment to the troubled island state.

There was great expectation ahead of the prime minister's visit on Saturday, following big spending coalition promises for the state amid rising unemployment and an ailing economy.

But in Hobart all that was on offer was a vague promise from a re-elected Labor government to spend $5 million on a showground redevelopment, leading to 140 jobs.

"We still have a big challenge here is Tasmania and jobs are number one and core here in the island state," Mr Rudd told reporters at Hobart Showground, in the seat of Denison.

To soften the blow, Mr Rudd championed his "love" for Tasmania and said Labor was committed to the state's future, citing the launch of the National Broadband Network as proof of its backing.

"When there's a jobs problem in Tasmania we are there to step in and help," Mr Rudd said.

Asked when the jobs would flow from the funding announcement, Mr Rudd said he didn't want to get into the "micro-planning" of the project.

The commitment follows a promise by Opposition Leader Tony Abbott in Tasmania earlier in the week to pay employers to they hire people who have been on the Newstart allowance for six months or more and continue to employ them full time for at least six months.

The pilot plan would cost $6.5 million over the forward estimates to create 2,000 jobs.

Denison is held by independent Andrew Wilkie who is expected to retain the seat at the September 7 poll.

Labor's candidate Jane Austin is contesting the seat.

"I have never been a critic of Mr Wilkie and I don't intend to be a critic now, but what I'm saying is that in an election everyone deserves to have a choice," Mr Rudd said, in a half-hearted endorsement for Ms Austin.

He also said a Labor government would pay $375,000 to help fund the $1.1 million redevelopment of Prospect Park in Launceston.

The prime minister used the opportunity to warn Tasmanians their state would get $600 million less from the GST under an Abbott government.

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