Economy
Forest contractors to claim for losses
The Federal and State Liberal Oppositions will work with forest contractors to lodge claims against the Commonwealth for losses caused by the administration of the Gillard Government’s forest contractors exit package.
The claims will be made under the Scheme for Compensation for Detriment caused by Defective Administration (CDDA scheme).
“There are a number of forest contractors who do not want to leave their industry and who have not applied for exit packages, yet they have found their businesses stranded because of flow-on effects of the Federal Government’s Forest Contractors Exit Assistance program,” Senator Colbeck said.
“We heard last week that haulage trucks were sitting idle because harvest contractors had left the sector.
“The Federal Government was warned this could happen but ignored the advice and this blunder has created the very circumstance that industry feared.
“I have spoken to contractors who have lost 20 per cent, 50 per cent and even 70 per cent of their businesses.
“One contractor has advised me of losses of $100,000 just for January.
“These are companies which made a conscious decision not to apply for an exit package.
“They are long term participants in the industry and want to stay.
“They have had their business devalued and diminished by a government that appears to be incapable of managing anything properly.
“These contractors are understandably very distressed at their current circumstances.”
“This is the latest example of failed management from the Gillard Government, just like the pink batts debacle, the green loans balls-up, and the school hall rorts before it,’’ Senator Colbeck said.
The CDDA scheme is available to members of the public who have suffered loss or damage because of a government agency’s mistake or poor administrative practice.
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