The Hodgman Liberal Government is committed to growing the forestry industry and putting it on a sustainable path.
One of the major challenges to deal with has been residues in the south of the State following the closure of the Triabunna mill and export facility.
The Government initiated an EOI process to seek industry-led solutions to this challenge.
Earlier this year, I announced that four proponents would enter the final stage of the Southern Residue EOI process.
Forestry Tasmania has now agreed to terms with two of the proponents. A contract with one of the proponents has already been signed and another is expected to be signed shortly.
Negotiations with a third proponent are ongoing and the fourth proponent has decided to exit the process.
This is a great outcome for the industry, for Forestry Tasmania and for the State and shows that there is a bright future for forestry in Tasmania.
While the proposals are commercial-in-confidence, when all negotiations are finalised we will make available what further details we can. The options involve exports from Macquarie Wharf and exports from the North respectively. Again, I want to reiterate that there will be no woodchip pile on Macquarie Wharf.
The EOI process has delivered outcomes for southern residues over the short to medium term, and importantly, it has also brought forward a range of longer term proposals including biomass and port options.
The Government will now facilitate a process to develop longer term outcomes being further progressed by the private sector.
This is an important step in our plan to rebuild the forest industry, along with the transition of Forestry Tasmania onto a commercially sustainable footing and the related sales process for the States hardwood plantation assets.
The details of Forestry Tasmania’s revised operating model are being finalised between the Government and the Board of Forestry Tasmania under the leadership of new Chair Robert de Fégely and will be announced later this year as will the Industry Growth plan that is being developed by the Ministerial Advisory Council. Together, these will provide a clear path for growing Tasmania’s forestry industry, in both the public and private sectors.
In respect of the State’s hardwood plantation assets, the due diligence is almost complete and while no final decision has been made on the scope of the plantations sale that will be progressed, we very clearly understand the industry’s view that it is important to ensure that the capacity of Forestry Tasmania to maintain its legislative and supply obligations are fully maintained.
Peter Gutwein, Minister for Forestry
