The Liberal Government will not reveal how much Forestry Tasmania is being forced to borrow to remain solvent.
“Forestry Tasmania is effectively living on borrowed money to pay wages and keep the business afloat,” Labor Leader Bryan Green said.
“The Government admitted today there is no quick fix to the profitability of Forestry Tasmania and refused to answer how much the business will have to borrow to keep afloat.
“The Treasurer Peter Gutwein has provided a letter of comfort to the banks to allow Forestry Tasmania to borrow what is likely to run into tens of millions of dollars.
“The Liberals have cut Government support to Forestry Tasmania and hung the businesses out to dry for no other reason than to pay for their extravagant election promises.
“Tasmanians have been misled by the Liberals who said before the election their approach to forestry would allow Forestry Tasmania to trade its way out of financial problems.
“The fact is there has been no increase in timber harvested from Tasmanian forests in the six months since the Liberals came to office. Their promise to ‘open up the forests’ was a complete furphy.
“Despite all the Government’s talk nothing has changed; there is no more timber available and forestry Tasmania is in a much worse position.”
Bryan Green MP Labor Leader
