A Launceston sawmiller will receive $1 million to stay in the timber sector rather than leave, in a record agreement struck under the Tasmanian Government’s rejigged Regional Sawmiller Structural Adjustment Grants Program.
Barbers Sawmill on Dowling Street was to pocket $2,032,875 under the exit scheme set up by the previous federal Labor government.
The State Government has since restructured the program with the Commonwealth’s consent.
Sawmillers now have the option of keeping half their exit payout while remaining in operation.
Barbers Sawmill managing director Graham Barber told reporters on Tuesday he would use the $1 million to upgrade equipment and had secured a contract to receive sawlogs from Forestry Tasmania.
“That’ll involve upgrading our equipment, buildings, vehicles and allow us to buy equipment to sawmill smaller logs,” he said.
Resources Minister Paul Harriss hoped up to eight other sawmillers would follow Mr Barber’s lead by opting to stay in operation.
• Paul Harriss: Government keeps regional sawmillers in state
• jack lumber, in Comments: Seriously … no increase in available volumes and they will spend money to cut smaller logs … the ones that are currently going to Ta Ann . Oh that’s right they will be cutting all the plantation logs … the same ones FIAT said were unsuitable and why continued access to natural forest is needed. You know when it comes to sawmillers, it is a circular argument, all on the bandwagon with no residual benefit. PS: giving back half of something you should not have received is a great act.
