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Tasmania's relatively low population density and temperate, maritime climate mean that it is rich in unspoilt, ecologically valuable regions. Proposals for local economic development have therefore been faced with strong requirements for environmental sensitivity, or outright opposition. In particular, proposals for hydroelectric power generation proved controversial in the late 20th century. In the 1970s, opposition to the construction of the Lake Pedder Dam led to the formation of the world's first green party, the United Tasmania Group. In the 1980s the state was again plunged into often bitter debate over the proposed Franklin River Dam. The anti-dam sentiment was shared by many Australians outside Tasmania, and proved a factor in the election of the Hawke Labor government in 1983, which halted construction of the dam.
Nationally, Tasmania is well represented in the Australian Senate, where seats are not proportional to population. Since 1975, Tasmanian Independent senator Brian Harradine often held the balance of power. As a result he was able to hold the government of the day to pass legislation that, although often matches his conservative religious views, was also very financially rewarding for the state. Harradine successfully defended his seat in six consecutive senate elections and did not stand for re-election at the 2004 federal election, voluntarily retiring.
In state parliament, the Greens have held a growing number of seats since 1990. In the 2002 state election , the Greens won four of the 25 seats, the highest proportion of any Green party in any parliament in the world.
On 23 February 2004, the Premier Jim Bacon announced his retirement, due to being diagnosed with lung cancer. He passed away four months later.
Tasmania's erratic economy was first experienced by colonists in the early 1800s. The reasons have been many and varied over the years, and have often been attributed to: lack of federal infrastructure, lack of a gold rush, lack of open immigration initiatives, lack of population, decline in the wool and mineral economies, lack of early colonial initatives, or lack of foreign investment. Also of considerable note is the continuing exodus of youth to mainland Australia in order to seek employment opportunities.
Tasmania's main industries are: mining, including copper, zinc, tin, and iron; agriculture; forestry; and tourism. There has been a significant decline in manufacturing in recent years, leading to a substantial drain of the island's trained and experienced working population to mainland Australia, especially to major urban centres such as Melbourne and Sydney. Tasmania has the least revenue out of any state in Australia - its annual budget is similar to that of the city of Brisbane.
Tasmania's economic woes have caused many Tasmanians to view the world and their place in it quite differently from the rest of Australia. Consequently, Tasmania has a thriving, though under-resourced, arts community and environmental movement. However, this has turned out to be as much a divisive as an inclusive issue in respect of Tasmanian's sense of identity. The thrust of the environmental lobby has resulted in large areas of the state being conserved in national parks and other protected areas thus limiting economic development through means of industries such as forestry and mining.
Today, a significant amount of employed Tasmanians work for the government. Other major employers include the Federal Group , owner of Tasmania's two casinos, and Gunns Limited , the state's biggest forestry company. In the late 1990s, many national companies have based their call centres in the state.
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