The Tasmanian Government has used a milestone in Hobart's $100 million Parliament Square redevelopment to promote the hundreds of jobs it will create during construction.

Work to demolish old buildings in the CBD has begun, four years after the project was first proposed.

The desperately-needed jobs boost comes after special legislation was fast-tracked through State Parliament last year, blocking appeals against the project.

The developer, Citta Property Group, says the project will include public open space, an amphitheatre, office building, the preservation of heritage buildings and shops and cafes.

The Premier, Lara Giddings, says the demolition work can begin, now that asbestos has been removed from the site.

But she says construction of new buildings will not start until next year.

"This is a really important piece of the puzzle of the waterfront area, where you will have a mix of uses, of office space," she said.

"But also entertainment space and, most importantly, open space for people to be able to use in the same way that you see Melbournians use Federation Square for instance."

Optimism not shared by the Opposition

The Opposition's spokesman, Peter Gutwein, took a swipe at the Premier for courting publicity as the demolition work began.

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