The Liberal Government will work with Forestry Tasmania to review the business and put it on a pathway to long-term sustainability.
“In stark contrast to the previous Labor-Green government, the Liberal Government is committed to growing our forest industries, not shut them down,” Resources Minister Paul Harriss said.
“So destructive were the policies of Labor and the Greens that they needed to prop up Forestry Tasmania with an operating subsidy paid by taxpayers – taking money from health, education and police.
“The Liberal Government has ended that subsidy, as we said we would, but we will not abandon Forestry Tasmania.
“We will now thoroughly review the business to find a clear path to a long-term, financially secure future for the management and commercial operation of Tasmania’s public production forests.
“Importantly, this review will include Forestry Tasmania, not exclude it; as Labor and the Greens did when they were in government.”
Treasurer Peter Gutwein said the Liberal Government has provided a letter of comfort to Forestry Tasmania in relation to its financial model while the review is underway.
“This review, which will be overseen by the Resources Minister and I, will report by the end of March next year,” Mr Gutwein said.
“The overall objective of the review is to determine the most appropriate means to deliver economically viable and sustainable forest management and wood production outcomes for the State.
“The review will consider the current Forestry Tasmania operating model, commercial arrangements and constraints and how these are impacting on its financial performance.
“It will also identify options for the short term and consider the current and future role of Government in the Tasmanian forest industry.
“A steering committee will include representatives from Treasury, Forestry Tasmania, and the Departments of State Growth and Premier and Cabinet.
“The Liberal Government recognises the importance of Forestry Tasmania to not only the industry but to the wider community, and that’s why we are acting to secure a sustainable future for this business.”
Paul Harriss, Minister for Resources Peter Gutwein, Treasurer
