FEDERAL Assistant Treasurer Nick Sherry spent yesterday in the Far North on a "listening tour" to hear the concerns of people about the region's economic woes.

He said he was concerned about the high 12.5 per cent unemployment rate and understood how the economy was suffering because of the tourism and construction downturn.

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Mr Sherry spent the day inspecting a $3.2 million expansion at Edge Hill State School, talking to a small business owner who had bought new vehicles with the Small Business Tax break incentive, looking at the Mossman Gorge gateway project and speaking to the Port Douglas Chamber of Commerce.

He acknowledged the multi-billion dollar Building the Education Revolution school infrastructure program was only short to medium term.

"I need to listen and understand how we can strengthen and diversify the regional economy of Far North Queensland," Mr Sherry said.

He said it was apparent Cairns needed to diversify from its tourism base into areas such as mining, education and other industries, and avoid the "boom and bust" cycle.

Mr Sherry said the Government’s stimulus package had been "cushioning" the region’s economy.

He said the stimulus strategy had injected $245 million into the region’s economy, including $150 million in schools, $7 million to six local projects under the first round of the Jobs Fund, $66 million in tax bonus payments to 75,375 taxpayers and $21.7 million to pensioners, seniors and carers.

Member for Leichhardt Jim Turnour said the unemployment rate, which was almost twice the national average, would be a lot worse without the Federal Government’s stimulus and other funding.

"The unemployment figures for Cairns and across North Queensland are concerning and the tourism and construction industries are under pressure," he said.

Mr Turnour said unemployment was his top priority and the Keep Australia Working forum at the Cairns Convention Centre on Friday would focus on employment.

He said the forum would bring key local business and community leaders together with senior Federal Government decision makers to develop an employment strategy for the region. Employment Participation Minister Mark Arbib, the Parliamentary Secretary for Employment Jason Clare and Senator Jan McLucas would be at the forum.

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