David Llewellyn, Minister for Energy and Resources, today welcomed the completion of the New Forest Industry Plan and congratulated the forest industry on its vision and commitment to innovation.

“The Plan, which has been based on independent advice from URS Forestry, represents an exciting glimpse of what the forest and wood processing industries might look like in Tasmania in ten years’ time,” Mr Llewellyn said.

“If they’re commercially realised, the opportunities outlined in the plan can only mean positive outcomes for all Tasmanians.

“Already we’ve seen $2.4 billion dollars of forestry investment in Tasmania as a result of the certainty and stability provided by the Regional Forest Agreement.

“We now have the prospect of further opportunities with around $2.5 billion of capital investment identified – and the real possibility of 2,000 highly-skilled careers as a result.

“Conversely, without this Plan and with the present storm clouds of reduced woodchip markets, we would not have the certainty we need for the industry into the future.

“It is vital that new development, in particular the proposed $2.6 billion Gunns’ pulp mill, come to fruition to provide that certainty.

“Without a pulp mill the full potential of the forest industry would be difficult to realise.”

Mr Llewellyn said that the plan aimed to:

· expand existing pulp and paper production and restructure hardwood sawmilling capacity to include greater utilisation of plantation resources;

· establish engineered wood product facilities with an ongoing focus on high-value products for domestic and export markets and sustainable bio-energy production;

· increase supply chain efficiencies and increase the use of wood products;

· enhance forest management practices and reduce the threat of wildfire; and

· adapt to climate change and contribute to a reduction in Tasmania’s carbon footprint.

“These investments, plus the proposed Bell Bay pulp mill, will also provide secure opportunities for forest contractors,” Mr Llewellyn said.

“That security is needed in order to invest over $365 million in new harvesting and transport machinery.

“The Government will work in partnership with the forest industry to make these enormous potential benefits real.”

Mr Llewellyn said that the Plan looks towards a future which is increasingly focussed on native regrowth, plantation resources and a strong softwood sector.

“It also recognises the vital role the management of our managed native forests plays in providing access to world-renowned timbers for high-value products and world-class tourism infrastructure.

“It facilitates the maintenance of fire-fighting resources and provides fibre for papermaking.

“The State Labor Government is focussed on securing a sustainable future for the industry while delivering world-class environmental outcomes and real career paths into the future for Tasmanians.”

Mr Llewellyn said the Plan should give confidence to the Tasmanian community that the forest industry is moving forward with a sense of purpose, a clear plan for future sustainability and an unwavering commitment to world-class environmental outcomes.
David Llewellyn, MP Minister for Energy and Resources Tuesday, 2 February 2010