17 February 2012
DAFF12/284LS

Joint Media Release

Senator the Hon. Joe Ludwig, Minister for Agriculture, Fisheries and Forestry

The Hon. Sid Sidebottom, Parliamentary Secretary for Agriculture, Fisheries and Forestry, Member for Braddon

The Gillard Government will commence the delivery of exit grants under the $45 million Tasmanian Forest Contractors Exit Grants, part of the Tasmanian Forests Inter-Governmental Agreement (IGA).

“There is no doubt this is a difficult time for many in forestry,” Minister Ludwig said.

“Monday’s announcement, that Ta Ann is reducing its workforce is one in a series of announcements over several years that reflects changing circumstances in Tasmania.

“In 2010, Gunns Limited signalled its intention to withdraw from native forest logging and has significantly reduced its holdings in Tasmania, including the sale of its export woodchip facility, which remains unopened.

“There have been mill closures over the years that have affected several communities and the recent suspension of operations of the Artec facility in Northern-Tasmania means there is now no operational export facility for Tasmanian woodchips.

“That’s why organisations like the Forest Industry Association of Tasmania and the Tasmanian Forest Contractors Association recommended exit assistance be made available to forest contractors in the Statement of Principles Process.

“The Gillard Government subsequently agreed to make the assistance available in the $276 million Tasmanian Forests Intergovernmental Agreement.

“We are delivering on our promise to provide exit assistance to Tasmanian native forest harvest, haulage and silvicultural contractors under the IGA. I call on all Statement of Principles signatories to maintain their commitment to the process they have been involved with since it commenced.”

In addition to the contractors exit assistance, the IGA provides assistance to workers and a guarantee of wood supply to remaining forest product processors.

“The Liberal/Nationals recognised the need for a ‘major restructure’ in forestry in their 2010 election policy,” said Parliamentary Secretary for Agriculture, Fisheries and Forestry, Sid Sidebottom.

“Instead of criticising the IGA they should support the need for a long term plan.”

The Department of Agriculture, Fisheries and Forestry will start making offers today. Before payments are made, applicants will need to provide an exit strategy and enter into a funding deed before receiving payment. Details of offers made will be published on the department’s website once all applicants are notified of the outcome of their application.