The Hodgman Liberal Government is rebuilding the forestry industry to drive economic growth and create jobs.

There are a number of positive signs which show our Plan is working, with wood and woodchip exports up, sawmilling jobs secured, the ARBRE training hub launched in Launceston, the opening of the Ta Ann mill at Smithon and reopening of the Forico mill at Hampshire.

A key part of our Plan is finding a solution to the southern residues problem resulting from the Labor-Green shutdown of Triabunna.

Following significant private sector interest, we called for an EOI to identify an industry-led solution for southern residues with a total of 19 proposals received. As we’ve made clear, these proposals needed to demonstrate financial viability without Government funding.

As we considered these submissions, there has been strong commercial interest in a separate plantation based log export operation to feed a silicon smelter in Saudi Arabia, providing a potential market of around 500,000 tonnes a year from private plantations. This is a clear demonstration of the revived confidence we’re seeing in the sector under a pro-forestry Government.

The commercial proposal for the whole log export operation will be vigorously pursued and encouraged. Given the limitations this will place on available space on Macquarie Wharf, the Government will not proceed further with proposals involving bulk woodchip stored and exported from Hobart. We will also not proceed with proposals requiring Government investment or proposals which have been assessed as unlikely to contribute to a viable residues solution.

A total of 14 proposals will now proceed to stage two of the EOI process. The Government will now seek more detailed business cases on these proposals, which include short-term solutions such as alternatives to bulk exports through the port of Hobart as well as longer-term solutions such as wood products processing, biomass and biochar.

Until a residues solution is in place, the Government will continue to assist the industry to access export markets by subsidising the transport of southern residues to the North. This investment will allow industry to continue exporting native forest residues while we implement a long term solution to deliver a sustainable forest industry that all Tasmanians can be proud of.
Paul Harriss, Minister for Resources