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Internal issues cause compensation bungle

A senate inquiry into a bungled $45 million forestry contractors exit program heard Forestry Tasmania had mistakenly backed some contractors’ eligibility for compensation. Source: The Mercury

Forestry Tasmania managing director Bob Gordon told the inquiry the letters that backed the contractors’ applications and eligibility were withdrawn and the Department of Agriculture, Fisheries and Forestry advised them immediately when the bungle was discovered.

Gordon said there was nothing untoward in the mistake.

“In my view we stuffed up internally with control mechanisms,” Gordon said.

He said the federal Forestry Department had ignored his warning that buying out too many contractors would hamper Forestry Tasmania’s ability to meet its legislative obligations.

The Senate inquiry also took evidence from the Australian National Audit Office, forestry contractors, the Australian Forest Contractors Association, the advisory panel for the Tasmanian Intergovernmental Agreement Contractors voluntary exit grants program, former Tasmanian FCA executive officer Ed Vincent and DAFF officers.

The Senate inquiry follows National Audit Office concerns that a number of contractors missed out on compensation.