The West Australian Government admits its refusal to bail out the timber industry may lead to job losses and business closures.
The timber industry had asked the government for funds so it could pay off old debts.
It also wanted the government, which supplies logs to the industry, to reduce the prices it charges for timber.
The Forestry Minister Terry Redman says his decision not to use tax payer funds to boost the industry could have further ramifications.
“I am fully supportive of the native timber industry and indeed we will act to cushion any community impact of any closures if and when they occur,” he said.
“I’m not, haven’t got a crystal ball so I’m not able to decide what decisions these bigger mills will make but there could well be an impact for some of those communities.”
The forest industry says it’s shocked and disappointed that the Government has refused to reduce the price of timber sourced from crown reserves.
Bob Pearce from the Forest Industries Federation says the government’s decision will cost jobs.
“Well I was a little bit surprised to be quite honest that Mr Redman would was so calm about the fact that mills are closing, people are losing their jobs , there’s a lot of uncertainty in the communities which he is the direct representative of.” Source: ABC News
