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More information on peace deal funds

Tasmanian’s Economic Development Minister has given more detail about which projects will get a share of forest peace deal funding, amid claims the process is flawed. Sources: ABC News, The Examiner

Signatories to the peace deal met David O’Byrne to raise their concerns about the carve-up of $100 million tied to the deal.

The Minister has also been criticised by regional councils, the Liberals and the Australian Greens about the absence of any guidelines under the economic diversification scheme.

Twelve councils have submitted more than 30 projects for consideration. The first allocation of $10 million was for a project setting up a rural computer program providing farmers with data on climate and other conditions affecting crops.

Economist Bruce Felmingham joined those criticising the handling of the funding carve up.

“You need those criteria because we’re spending taxpayers funds,” he said. O’Byrne moved to silence his critics, releasing a set of general criteria.

He said priority would be given to what he calls “shovel-ready” projects which support or promote emerging sectors and contribute to economic and employment growth.

Where possible, money will also flow communities impacted by the forest industry restructure.

Regional mayors have taken aim at the forestry peace deal’s multimillion-dollar pot of gold, saying a rushed process will ruin community outcomes.

The state and federal governments have fast-tracked a plan to spend up to $90 million left in the forestry inter-governmental agreement’s economic diversification fund, calling on councils to submit key projects through a four-page application form within just 10 days.

Dorset Mayor Barry Jarvis said it’s a “sad state of affairs”, leaving mayors and industry confounded.

Cr Jarvis, speaking on behalf of 12 regional councils, said local government officers were invited to a meeting in Hobart two weeks ago and given a proforma application.

“My general manager went down on a couple of days’ notice and was told, `You’ve got a week, a week and a bit’,”Cr Jarvis said.

“We’ve asked questions but we still don’t know how much is being spent, what’s the process, what criteria are being used.

“We’ve resorted to lobbying politicians, and I presume others have too.”

Economic Development Minister David O’Byrne said Cr Jarvis had had “more than two years to put forward his community’s priorities” and to call it rushed was nonsensical.

However, The Examiner has seen a copy of the application form, dated June 18, 2013 – just before when Cr Jarvis said the meeting was called.

The form asks applicants to align with Tasmanian Economic Development Plan goals and identifies priority sectors – wine, agriculture, horticulture and food, aquaculture, dairy, tourism, mining, sport and creative industries, advanced manufacturing, education and skills, clean energy and forestry and forests products.

The 12 regional councils have made their projects public in an effort to win support, which Cr Jarvis has called “a real test of the government’s sincerity”.

Asked whether he was confident that regional projects would win funding, Cr Jarvis said: “On a scale of 1 to 10, maybe a 2.”

Huon Valley Mayor Robert Armstrong said the process was rushed, and fortunately a council meeting was scheduled within the 10-day window to ratify projects.

“We don’t want short-term projects to get up just for the benefit of an election,” Cr Armstrong said.

Circular Head Mayor Daryl Quilliam said he was concerned non-regional councils were eyeing off the pot, when it “needs to go to areas affected by forestry”.

Opposition Leader Will Hodgman said he did not support the fund as the Liberals “don’t support the agreement and don’t by extension support the programs that come out of it”, but plans needed to be transparent.

“If the government’s going to spend money, we want to see it being spent well,” he said.