The Hodgman Liberal Government is rebuilding the forest industry and, after careful consideration, we have decided to invite formal Expressions of Interest from the private sector for an industry-led southern residues solution, rather than proceed with a publicly-funded option.
Following the Labor-Green shut down of the industry and the destruction of the Triabunna woodchip mill, southern markets were left with no option but to send their residues north.
The need for a southern residues solution is central to rebuilding the forest industry and a key priority for the Government and that’s why we commissioned Forestry Tasmania and TasPorts to conduct an investigation into potential export port options across the South.
While this work was progressing, there was significant interest from the private sector in pursuing its own solutions.
It is not in the interests of the industry or of the Tasmanian community for Government to compete with the private sector in areas where private enterprise, private capital and private expertise are well equipped to do the job.
The Government is confident that an industry-led solution will be in the best interests of the industry and of Tasmanian taxpayers.
Existing freight assistance for southern residues will be phased out as quickly as possible in conjunction with the development of the industry-led solution.
While the details are still to be finalised, any Expressions of Interest which are based on the use of Macquarie Wharf in Hobart will need to be presented on the basis that there will not be a woodchip pile on the wharf and that processing will need to occur offsite.
The Government will be looking for innovative proposals that minimise visual impact on the waterfront and minimise impact on traffic through the city.
Stakeholders – including the Macquarie Point Development Corporation and the tourism industry – will be consulted as part of the Government assessment of submissions.
It is important to note that the Government does not intend to restrict the Expression of Interest process to fibre exports. As we have said previously, wood fibre or any other unimproved exports is a second-best option to local processing, value-adding and local jobs.
The Ministerial Advisory Council is investigating residue solutions as it develops the growth plan for the industry. The purpose of that investigation is to identify potential options to add value to harvesting and processing residues from both native forests and plantations.
In the meantime, the Hodgman Liberal Government encourages any business with a viable plan for on-island processing of residues to put it forward through the EOI process for consideration.
The Hodgman Liberal Government has a Plan to rebuild the forest industry, drive economic growth and create jobs and under this Government, Tasmania is heading in the right direction.
Paul Harriss, Minister for Resources
