*Pic: Matthew Newton’s ( http://matthewnewton.com.au/Commercial/People/1/ ) award-winning picture of a protest in FT’s HQ in Melville St, Hobart … (err …years ago)
The Honourable Peter Gutwein MP
Treasurer
Tasmanian House of Assembly
9th June 2015
Dear Minister,
After a delay of nearly one month, I am appalled at the inadequate response you have sent me. The failure even to attempt to answer the reasonable questions posed speaks volumes about the Government’s transparency, especially when related to forestry.
You state in your reply that your Government is committed to restoring confidence in forestry. Confidence would improve if you publicised any proposals you have for forestry’s future.
The only conclusion one can draw from your response is that your government has no plan for the bankrupt forestry industry, that it does not intend to admit to this failure, and that it does not intend to account for its actions to the Tasmanian people. What a sad and sorry state forestry has evolved into.
As a reminder I list again the questions posed:
1/ How and when was the sale of FT’s hardwood plantation decided, and by whom?
2/ How is the money from the sale of these plantations going to be apportioned? Please provide details.
3/ Why should FT upper management and board members be salaried at the expense of Tasmanian shareholders?
4/ Under the Forest Practices Act, a full response by Ministers to stakeholders’ concerns is required, as opposed to delegating responsibility to the FPA. Why has this not occurred?
5/ With the probable winding up of FT, how they can they justify applying for FSC accreditation?
6/ Given that FT has managed the land and trees, it is ultimately the Tasmanian people who own these assets. How can it be yet again justified that these assets are being sold for the benefit of FT?
Sincerely,
Mike Buky
EARLIER on Tasmanian Times, by Michael Buky …
• Beautiful Tasmania has suffered so long … for nothing …
• Forestry Tasmania – Increased Debt, No Plan to Pay it Back
Nick McKim MP | Greens Treasury spokesperson
Treasurer Peter Gutwein has today admitted that he has increased Forestry Tasmania’s debt capacity by $10 million to $41m, yet has repeatedly failed to explain how Forestry Tasmania can ever pay back the money it owes.
We know that Forestry Tasmania currently owes $27.8 million, yet the Treasurer has no idea whatsoever how and when FT can ever become financially viable.
The simple fact is that logging native forests is a loss-making enterprise, and there is no realistic prospect of that changing in the future.
The Treasurer has today set himself the timeline that Forestry Tasmania will become financially viable within two years, but has repeatedly failed to explain how he thinks this can happen.
He cannot even tell the Tasmanian people what the future operating model of Forestry Tasmania will be.
It’s now clear that Mr Gutwein has no plan for Forestry Tasmania except continuing to throw public funds at it and allowing it to rack up debts and sell assets.
• Peter Gutwein: Forestry Tasmania Forestry Tasmania flagged last year that it may require access to additional working capital of $10 million through Tascorp to account for timing of cash flows and as a result I increased the letter of comfort held by Tascorp earlier this year to $41 million. It should be noted that Forestry Tasmania’s current borrowings are $27.8 million.
• TV Resident, in Comments: I have been under the impression that FT were not going to be given any more public funding. This extension to their debt proves that it is just one more lie. When are the politicians going to tell us the truth?
• Stephan, in Comments: It’s really quite appalling how shabbily the people of Tasmania are being treated. The news on the ABC last night said it all. Tasmanians are “underwriting” the debt owed by FT. So the Taxpayers of Tasmania are guarantor for a debt that is ultimately the responsibility of the Tasmanian Taxpayer. All the responsibility with none of the privileges of knowing exactly “why” the State is bankrupting itself by creating something I can only think of as a “double” debt. It’s scary, it’s irresponsible and strangely Tasmanian.
• Estelle Ross, in Comments: 60% of graduate nurses cannot find jobs in Tasmania and those with jobs are sometimes forced to work double shifts and yet the Liberal Government is happy to provide Forestry Tasmania with $41 million to subsidise the company which has been woefully mismanaged and has never made a profit for years. What an absolute disgrace!
