A senate inquiry into the $45 million forest contractors’ exit grants scheme showed that the program failed to meet its stated outcome of reducing forest hauls. Source: The Examiner
In a submission to the inquiry, Forestry Tasmania reported that 1.3 million tonnes of contractor capacity and haulage capacity was removed as a result of the contractors’ exit grant scheme, but that more than 200,000 tonnes were later added in order to meet contractual obligations.
The Senate inquiry, championed by Greens leader Christine Milne, examined how the program failed to meet this key objective, as well as how decisions were reached on providing grants to contractors.
Senator Milne said Forestry Tasmania may have withdrawn its letters of support half way through the assessment process to reassess its wood supply.
“There seems to have been a whole lot of wink-wink, nudge-nudge going on,” Senator Milne said.
According to inquiry the Australian National Audit Office, which conducted a damning review of the exit grants scheme and the federal Forestry Department, administered the overall program along with Forestry Tasmania managing director Bob Gordon and advisory members to the scheme.
The audit office report found $3.59 million was offered to 10 applicants, despite them failing to demonstrate full eligibility.
The program’s eligibility requirements are at the heart of the dispute, which Senator Milne believes allowed some contractors to receive exit grants but stay in the industry without breaking the exit grant guidelines.
