Premier Lara Giddings has conceded Labor has lost power in Tasmania following the state election.

Tasmanian Premier Lara Giddings has conceded Labor has lost government to the Will Hodgman-led Liberal party.

“We do have to accept that after 16 years Tasmanians today have voted for a change,” she told the tally room.

Ms Giddings said she had spoken to Mr Hodgman and congratulated him on his victory.

“I’m only sorry for you that your father Michael and mother Marion cannot be here to see you become the 45th premier of Tasmania,” she said.

“It is a great honour and a great privilege lead this beautiful and great state of ours.”

She said the Labor opposition would hold the Liberal government to account.

Ms Giddings paid tribute to the Labor candidates and volunteers and to her Labor predecessors, the late Jim Bacon, Paul Lennon and David Bartlett.

“Most of all I am proud of our 16 years in government in Tasmania,” she said.

“The transformation of our state began with the election of Jim Bacon in 1998. He turned this place around.”

She said he cleared the state’s debts, and returned confidence to the state.

Ms Giddings outlined the legacy of Labor, saying her immediate predecessor Mr Bartlett had led reform.

“We have not let that legacy of reform end… in fact his period of government is something we can stand high and proud about.”

She urged Mr Hodgman not to tear up the forestry agreement.

She ended her lengthy speech by declaring “we will be back.”

Labor has so far won only six seats in the 25-seat parliament. The Liberals have a comfortable majority with 14.