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The ABC is closing its Hobart television production unit.

Up to 17 jobs will go and the programs Auction Room and Collectors will not be recommissioned.

ABC managing director Mark Scott made the announcement to staff in Hobart this afternoon.

Mr Scott says Tasmania does not have the scale and market needed to justify the costs of running an internal production unit

Communications Minister Stephen Conroy urged the ABC to reconsider.

"As the national broadcaster, it is concerning that the ABC continues to centralise its production processes in Sydney and Melbourne," he said.

"I call on the ABC Board to ensure that the broadcaster upholds its clear obligations in relation to cultural diversity and local programming."

The Tasmanian president of the Friends of the ABC Margaret Reynolds also wants the ABC to reconsider.

"Mark Scott wants to centralise everything," she said.

"The history of the ABC is that it's a national broadcaster, reflecting the people of this country.

"It's not about reflecting Sydney, or what is the latest BBC material to be bought by the ABC.

A Liberal Senator says the scrapping of the ABC's Hobart TV production unit means the broadcaster risks breaching the spirit of its charter.

Labor and the Greens say the ABC is failing to serve regional audiences and are setting up a Senate inquiry into ABC TV production in regional areas.

Federal Tasmanian Labor Senator Catryna Bilyk will move the motion tomorrow, with support from the Greens.

Federal Liberal Senator David Bushby, also from Tasmania, says he broadly shares their concerns.

A Senate committee will conduct an inquiry into the impact of centralising the ABC's TV production services.

The Federal Government supported The Greens motion to hold an inquiry.

The inquiry will consider the impact of centralising services on the ABC's ability to reflect national identity and diversity.

The Community and Public Sector Union (CPSU) welcomed the inquiry.

CPSU national lead organiser for the ABC Sinddy Ealy says it is time the public broadcaster was challenged on its commitment to nurturing regional voices.

"The ABC continues to tell us that it is committed to regional TV production, but the facts tell a different story," she said.

"The ABC has taken an ideological stand against internal production in favour of outsourcing programs to the private sector.

"It's been death by a thousand cuts and I think the public as well as our members have a right to know where it is all going to end."

The ABC's managing director, Mark Scott, has told a Senate inquiry the decision to close Hobart's TV production unit does not breach the national broadcaster's charter.

Mr Scott says the decision to abolish it will allow the ABC to produce TV programs more cost-effectively.

"If that's what we're asked to do - keep studios busy and filled - well, we're not funded for that, and that's never been in our charter, and that's never really been a part of our brief," he said.

"In fact our responsibility is not to keep local film production all around the country busy.

"Our charter says to reflect the country back to the nation."

On the first sitting day in Hobart it heard submissions from unions, Friends of the ABC and the Screen Producers Association of Australia.

Community and Public Sector Union spokesman Paul Blake says the cuts are part of a pattern of centralising TV production in Sydney.

He says the next round of ABC funding should be tied to producing more regional content.