A $4.5 million package to create jobs at Scottsdale in Tasmania's north-east has disappointed the community, which is still reeling from the blow of timber company Gunns closing a sawmill, with the loss of more than 100 jobs.

Businesses can apply for grants from October to expand and employ more people, but it will be some months before they are expected to be offering work.

The Federal contribution is re-distributed money which was to go to Gunns and pay for the sealing of the Mussleroe Bay road.

The Federal Industries Minister, Kim Carr, is unapologetic.

Senator Carr told ABC Local Radio the money earmarked for Gunns would have ordinarily gone back into consolidated revenue.

"Also to ensure that money that had been sitting there for a road which was not being spent and was unlikely to be spent for in the immediate future was put to work now," he said.

"We've got a situation where people, workers in the community, have a need which needs to be responded to by their governments by their communities now.

"Senator Carr says the Government cannot just hand out money.

"We are not going to act precipitously or recklessly. This is public money," he said.

CFMEU State Secretary Scott McLean stated;

“There were a number of commitments given to the retrenched workers and the North East community.  We expect these commitments to be met.  The State and Federal Governments must commit to ensuring a secure future for the North East and the Union will continue to pursue this outcome.”