Bartlett’s forest strategy is already on shaky ground

… and how they relate to another player Gunns see link to Gunns banking dilemma: HERE .

FEA is insolvent, its future under a cloud. It is yet to release its latest half yearly results. They were due on Friday 26th Feb. The new forest strategy initiated with Mr Bartlett’s $6.5 million announcement (see link to $6.5m announcement: HERE) seems to be on shaky ground already.

And here’s more confirmation of the David Bartlett Labor Government’s reliance on Cargo Cultism and failure of vision:

THE State Government’s announcement that it had reached an agreement to sell 800,000 tonnes of woodchips to Asia and save 150 jobs has proved premature.

Industry insiders yesterday said that Japan now knew how desperate the state was to sell woodchips to keep Gunns’ Bell Bay and Triabunna chip mills open and it was proving hard for the Government to settle the sale.

On February 12, Resources Minister David Llewellyn said the Government had reached a sale agreement with Asian markets following a “mercy dash” to Japan with Gunns chairman John Gay and Forestry Tasmania chief executive Bob Gordon last month to seek new contracts.

But yesterday it was confirmed that the mills remained closed because of a lack of export sales and there was no time-frame on a restart, angering out-of-work contractors.

Industry sources say that a conservative estimate of the loss to the Tasmanian economy from the shutdown of the woodchip mills would be about $6 million.

An insider said that the commercial dealings would now be more difficult for the Government.

…

After the trip Mr Llewellyn also said that a Japanese-based international conglomerate was interested in buying Tasmanian organic and frozen vegetables and fish but any confirmation of a deal is also yet to be released by the Government.

From the Examiner, HERE

Dave’s view: HERE