Tasmanian Opposition Leader Bryan Green has used Question Time to ask the Premier to confirm whether a controversial federal grant to Cadbury would be paid.

The grant of $16 million was promised by the Federal Government to the Hobart-based chocolate maker during the 2013 election campaign to help the company upgrade its Claremont factory and restart tours.

But Mr Green pressed Premier Will Hodgman to lobby the Federal Government to hand the State Government the money to instead help create jobs on Tasmania's struggling west coast.

"Can you confirm that the $16 million that was committed to the tourism development at Cadbury's has been withdrawn, and if so will you finally stand up for Tasmania and demand the money is invested on the state's struggling west coast?" he asked during Question Time.

Mr Hodgman did not deny Mr Green's claim about the $16 million grant, saying he understood Cadbury would make an announcement today.

"That is a matter between Cadbury and the Federal Government, and I am not going to pre-empt any announcement they may make," Mr Hodgman told Parliament.

In mid-Feburary, Hobart-based independent MP Andrew Wilkie raised the controversial grant in federal Parliament.

Prime Minister Tony Abbott defended a delay in handing over the money and indicated it would only be handed over if the business case stacks up.

At the time, Mr Abbott said: "We've only had the business case for a matter of weeks, we are carefully studying the business case, if the case stacks up the project will go ahead".