Forestry Tasmania appears to be failing in its corporate objectives. Tom Ellison reports.
When Forestry Tasmania was corporatised in 1995, the intention was to place the organisation on a more commercial footing, with a view to driving better returns from the State’s 1.5 million hectares of publicly owned forests. With a mandate to manage the forest estate for optimum community benefit, Forestry Tasmania also has a stated aim of improving profit performance and returns to its shareholders, the Tasmanian public. But if the fine print in last week’s State Budget is an indication, Forestry Tasmania is failing in its own corporate objectives. According to the Budget papers, Forestry Tasmania will return just $1 million in dividends to the State Government in 2006-07 — a massive fall from the $7.8 million expected to be paid in the current year.