Work on the light rail business case continues to progress with the work undertaken to date to be subjected to peer review.

The Minister for Sustainable Transport, Nick McKim said that the review will cover the economic elements and the values adopted as well as the approach to assessing benefits and passenger demand forecasts used in the business case.

"Concerns have been raised regarding some of the decisions and assumptions made as part of the Light Rail Business Case," Mr McKim said.

"As I consider it important that stakeholders and the community have confidence in this submission, I have asked for these concerns to be tested by independent and specialist transport economists.

"A rigorous and transparent process will ensure that we can go forward with the strongest possible case to seek funding.

"Hobart Northern Suburbs Rail Action Group President, Ben Johnston has indicated his support for this process."

Mr McKim said that the study has identified the cost to establish light rail between Hobart and Claremont would be in the order of $80-$90 million. 

"Clearly, this is beyond the reach of the State Government in the present climate. 

"However, in order to make the case for funding support from the Australian Government, we must be prepared to engage in a highly competitive process and we must be certain that we are able to meet the strict criteria that Infrastructure Australia applies to any bid.

"We have already raised this project with Infrastructure Australia as an early stage proposal indicating that there was more work to be done and this is another step in that process."