A federal department has confirmed allegations of rorting by Tasmanian forestry contractors who were paid to leave the industry. Source: ABC News
The Agriculture Department has revealed it has found one case of fraud and two instances of non-compliance in the $44 million Tasmanian Forestry Exit Grants program.
The investigation centres on contractors who claimed exit grants in 2011 and 2012, but continued to work in the industry.
The department released its findings on Monday, but Greens Senator Peter Whish-Wilson said there is not enough detail about who committed offences.
He said the department needed to identify perpetrators, so others in the industry are absolved.
“These bailout packages were designed to provide an exit with dignity for forestry contractors in what has been a declining sector,” he said.
“There’s no dignity for any of these contractors now, while there’s an investigation going on around serious fraud.
“There are honest forestry workers, and hard-working forestry workers, that are going to be tarred with this brush, and it’s actually the Government’s fault.
“We don’t know any of the details around the fraud investigation or what appears to be systemic non-compliance with the bailout packages.”
The department issued a statement saying it was “unable to comment on the specific details of current or ongoing investigations”.
It said the program is continuously monitored and the department “investigates allegations of fraud and noncompliance that it is made aware of”.
After the demise of timber giant Gunns, the grants program was seen as a way for battling businesses to exit the industry.
Contractors were eligible for up to $3 million in return for leaving the forest industry for 10 years.
Four years ago, 58 grants were provided to eligible Tasmanian harvest, haulage and silvicultural contractors to adjust to a downturn in the forestry industry.
In 2013, the ABC’s 7.30 program aired allegations from contractors that others in the industry claimed grants but continued to work in the sector.
No charges have been laid in regard to the three cases identified by the department, which said it is likely that more cases of non-compliance will be found before the investigation finishes in July.
