Letter to the Editor on … Forestry Fiasco …

Letter to the Editor

Now that Forestry Tasmania has been renamed as Sustainable Timber Tasmania, it would be reasonable to assume that there would be no more losses, a workable business model and the bottom line back in the black?

The commercial reality is quite different however, with the latest financial report revealing yet another big loss for Tasmania, this time a substantial $27 million! ( John Lawrence: Forestry Tasmania’s demise in detail: Billion Dollar Loss ).

Back in 2014 the Government promised that there would be “no more subsidies to FT”, yet the Budget estimates this year revealed that Tas Networks, the Government owned power company, was required to inject $30 million of their funds to prop up the Forestry bottom line.

Then FT sold the plantations for $60 million, a price described in the media as “a fire sale”, considering that they cost more than $100 million to establish, and were supplying the only Tasmanian timber that major retailers like Bunnings would agree to carry in stock.

The Tahune AirWalk cost over $4 million to build, but was also sold for the bargain price of only $1 million.

So after three resources Ministers in three years, selling most of the assets, chopping staff numbers and ripping funds out of our electricity company, they are still losing money, with no real turnaround in sight !

Does that sound in any way “sustainable” to you ?
Les Crawford, Cygnet. 7109