The Tasmanian Government has signalled it has not given up on its controversial changes to the state's gun laws, announcing it will establish up a new parliamentary inquiry into firearms law reform.

The State Government's proposed changes to gun laws were revealed by the media on the eve of the March state election and sparked condemnation from those who survived the 1996 Port Arthur Massacre.

After months of defending the policy, on Friday Premier Will Hodgman and Police Minister Michael Ferguson announced the Government was dropping the policy.

"We will not pursue the policy proposals that we have previously put forward," Mr Hodgman said.

In response to the announcement, the Legislative Council inquiry set up to investigate into firearms law reform, which had received 121 submissions, was cancelled.

But on Wednesday afternoon Police Minister Michael Ferguson announced the inquiry would instead be moved to the House of Assembly.

"As we said last week, we will not be progressing the previously announced firearms law proposals until consideration of any recommendations from a parliamentary inquiry," he said.

Mr Hodgman's decision was welcomed by the Tasmanian Farmers and Grazers Association (TFGA), who were surprised by the policy backdown.

"The TFGA looks forward to participating in this forum and ensuring that the views of Tasmanian farmers are heard," TFGA CEO Peter Skillern said.

Opposition parties were not impressed by the news of a fresh inquiry, however.

Greens spokeswoman Rosalie Woodruff said the decision proved the Liberals' controversial changes to gun laws were not off the table.

"The Premier … needs to completely scrap the secret policy," she said.

Labor leader Rebecca White said her party would participate in the inquiry.

"But I am surprised that the Government haven't used their own initiative by doing policy development rather than starting at nothing, which is where we are currently," she said.

Gun Control Australia vice-president Roland Browne described the establishment of a new inquiry as "mystifying and bewildering".

"I would anticipate the Government's being pressured by the shooting lobby again," he said.

"They're very weak when it comes to pressure from the shooting lobby and I expect they're trying to appease them."

It is unclear when the House of Assembly inquiry will commence.

"The Government's overriding principle in relation to any proposed changes continues to be that we will not do anything to undermine the National Firearms Agreement," Mr Ferguson said.