Tasmania’s Upper House has backed away from a Liberal motion, calling on members to a boycott legislation relating to the forestry peace deal.
Instead it has agreed to a private briefing on the legal advice surrounding a government payment to Gunns, before deciding its next move.
Liberal MLC Vanessa Goodwin called on Legislative Councillors to ignore bills on the intergovernmental forest agreement, until the State Government tabled the legal advice about a $23 million payment to Gunns for its native timber contracts.
But the Independent Member for Murchison Ruth Forrest told Parliament the Upper House has a responsibility to scrutinise all legislation.
“Any legislation that comes before this House should be considered on its merits.”
The Elwick Independent Adriana Taylor agreed.
“I believe we’d be abrogating at that responsibility by refusing to consider any bill that comes before us.”
The House instead agreed to a private briefing with the Solicitor-General on the condition they could see his full advice in writing.
Debate on the motion was suspended, pending the outcome.
• MORE DEBT FOR FORESTRY TAS? SERIOUSLY?
Premier Must Justify Move to Up FT’s Credit Limit
Kim Booth MP
Greens Forestry Spokesperson
The Tasmanian Greens called on the Treasurer Lara Giddings to clarify shocking revelations that Forestry Tasmania has received yet another letter of comfort from guaranteeing a staggering debt limit increase of more than 50% to $65 million.
Greens Forestry spokesperson Kim Booth MP said that Forestry, a mendicant and loss-making publicly owned corporation, cannot be allowed to continue to burn up public money.
“Given that this letter of comfort was granted in June, how can the Premier justify keeping secret a decision that puts at risk another $25 million in public money?” Mr Booth said.
“Forestry Tasmania has an appalling record of racking up debt without ever delivering a profit to taxpayers, and there is absolutely nothing to indicate that Forestry has the capacity back its debts.”
“If the Premier has any advice or due diligence to justify her decision to issue this letter of comfort, then she should make it public immediately.”
“By extending the GBE’s credit limit, the Premier is exposing taxpayers to more risk from an entity that has proven it cannot even make a profit from selling a timber resource that it gets for free.”
“It’s imperative that the current Strategic Review being undertaken into Forestry Tasmania examines these developments, as clearly this is yet another example of a failed business model.”
• ABC Online: Govt vouches again for Forestry Tasmania
The State Government has again been forced to vouch for the solvency of Forestry Tasmania.
Greens MP Kim Booth this morning continued scrutinising the Government’s dealings with Forestry Tasmania, asking whether the Treasurer had extended a “letter of comfort” to the state-owned lender Tascorp.
“That effectively guarantees that the public purse will cover Forestry’s losses as well as a staggering increase in debt of over 50 per cent to whopping $65 million,” he said.
The Premier, Lara Giddings, confirmed a letter of comfort was sent in June.
She told Parliament the industry was in transition and Forestry Tasmania needed support, like any other business.
“I have no problem providing letters of comfort on the advice of Treasury.”
The Government is currently undertaking a strategic review of Forestry Tasmania.
