GREENS MOVE FOR INQUIRY INTO CONTRACTOR EXIT PAYMENTS

The Tasmanian Greens today moved to establish a Parliamentary Select Committee to investigate the administration of forest contractor exit payments under the terms of the Tasmanian Forests Intergovernmental Agreement.

Greens Forestry spokesperson Kim Booth MP said a state-based inquiry was needed, in addition to the Federal inquiry advocated by Australian Greens Leader Christine Milne, to shed light on allegations of maladministration in a recent damning report by the Australian National Audit Office.

“The Greens have long supported buy-out packages and not bailouts for contractors, and it is unacceptable that when they are finally provided by the Commonwealth, they are badly mismanaged and cause more problems for the industry and taxpayers,” Mr Booth said.

“There are a lot of unanswered questions around the administration of these grants, including claims that a significant number of contractors did not meet the eligibility criteria for exit payments.”

“There are potentially even more serious questions over Forestry Tasmania’s decision in January 2012 to send unauthorised letters of support for the applicants’ exit from the public native forestry industry.”

“Given that this points to a potential intention to defraud the public purse, we need decisive action to bring some transparency and restore public confidence in this process.”

“The Auditor’s report found that the exit payments program had not only failed to properly ensure the exit of contractors from the industry, but failed to significantly reduce the wood being harvested.”
“This inquiry will get to the bottom of whether some of this taxpayer money earmarked for restructuring the forest industry has been rorted and wasted.”

“We are talking about millions of dollars in public money set aside under the IGA to bring about a much needed transition in the forest industry,” Mr Booth said.

Motion tabled by Greens Forestry spokesperson Kim Booth MP today:

Mr Booth to move—That the House:—

(1) Recognises that the Greens are the only political party in Tasmania to have consistently advocated since 2008 that forestry contractors needed a fair exit package;

(2) Further recognizes with disappointment the unfortunate pattern that when such exit program have been established by the Commonwealth, the administration of such important programs has been incompetent to the extent that serious probity issues have arisen, which has impacted on many of those who have genuine claims for assistance;

(3) Notes the damning report by the Australian National Audit Office released last week that found the $45 million provided by the Federal Government under the terms of the Tasmanian Forests Intergovernmental Agreement for the exit of native forest contractors in harvest and haulage and has failed to meet key objectives which were, broadly, to:

a. ensure contractors could exit with dignity; and

b. significantly reduce the wood being harvested and hauled.

(4) Notes a total of 102 applications for grant funding were received, 61 applicants were found eligible and 58 applicants accepted the funding;

(5) As part of the application process, Forestry Tasmania, as a principal, was asked by contractors to provide a letter of support for the applicant’s exit from the public native forestry industry, as evidence of support from the principal contributed to the applicant’s merit score;

(6) The Auditor General report No.22 found that the letters of support provided to the contractors were not duly authorised by Forestry Tasmania and should be disregarded;

(7) The findings of the Auditor General confirm that the numerous concerns raised of potential fraud reported to my office, of which I informed both the Federal Minister and the Department of Agriculture, Forestry and Fisheries to no avail, warranted serious investigation; and further

(8) This House agrees that Select Committee be appointed, with power to send for persons and papers, with leave to sit during any adjournment of the House exceeding fourteen days, with leave to report from time to time and with leave to adjourn from place to place, to inquire into and report upon the process undertaken in the establishment and administration of, the $45 million provided by the Federal Government under the terms of the Tasmanian Forests Intergovernmental Agreement for the exit of native forest contractors in harvest and haulage including, but not limited to:-

a) the information provided to the relevant and involved Tasmanian departments, including Forestry Tasmania, for the design of the grants;

b) the failure to provide authorised and accurate correspondence, icnuding the Forestry Tasmania letters;

c) the details of any new or renewed contracts to contractors in native forest harvest and haulage subsequent to the payout of the grants money;

d) their failure to inform the Tasmanian and Federal governments of any potential cases of fraud or maladministration; and

e) any other matter incidental.

(9) The Committee shall consist of 5 Members, being: 2 Labor members nominated by the Leader of the House; 2 from the Opposition nominated by the Leader of Opposition Business in the House; and 1 from the Tasmanian Greens nominated by the Leader of the Greens;

(10) And the Committee is to report by 27 June 2013 next.
Kim Booth MP Greens Forestry Spokesperson Tuesday, 19 March 2013