The federal government announced a $28.6million assistance package to compensate Ta Ann for the loss of 540,000 cubic metres of peeler billets over five years. Source: The Examiner
The company had a contact for 265,000 cubic metres of peeler billets a year until 2028.
The reduction will mean the company’s Smithton and Huon veneer mills will operate below capacity.
The package is to help Ta Ann adjust to a 108,000 cubic metre a year reduction in peeler billets and diversify its product base.
Peeler billets are smaller, thinner logs that can be shaped into high-grade veneer.
Ta Ann welcomed the announcement and the security it would give its workers. But the company remained tight-lipped on whether it would resume plans to build a $10 million plywood mill in Northern Tasmania.
In December Ta Ann put pressure on Members of the Legislative Council over the Tasmanian Forestry Agreement, promising to build a mill that would employ 25 people if the legislation passed.
The idea was put on hold, due to uncertainty over the ensuing Legislative Council inquiry.
Ta Ann operates two rotary peel veneer mills in Tasmania. The mills’ operations will be supported by an average of 157,000 cubic metres of native forest veneer peeler billets a year from Forestry Tasmania.
Braddon Labor MHR Sid Sidebottom said the buyback was good for economic growth and jobs in several regions of Tasmania.
“The continuation of Ta Ann’s operation at Circular Head is vital for the North-West,” Sidebottom said.
“The retirement of contracts will ensure operations and local jobs can continue with certainty.”
The Liberal Party has accused the government of using taxpayer dollars to buy out jobs with the announcement of the $28million subsidy.
Opposition forestry spokesman Peter Gutwein said the subsidy would not have been necessary if the Tasmanian Forests Agreement had left Forestry Tasmania with enough wood supply to fulfill its contract.
Ta Ann Tasmania executive director Evan Rolley said the compensation, along with the market stability provided by the vocal support of key environmental groups under the Tasmanian Forests Agreement Act, secured its future in the state.
“Ta Ann Tasmania is pleased that our more than 90 direct employees, their families and our contractors now have certainty after years of constant turmoil in the forest industry,” Rolley said.
The company has committed to remain in Tasmania for at least five years as part of the deal.
Gutwein said the government could have stopped damaging market attacks against the company without reducing the wood supply by taking a stronger line against environmental activists.
“What we should be doing is supporting our forestry industry, not shutting it down and using taxpayer dollars to buy out Tasmanian jobs,” he said.
The Huon Valley Environment Centre also criticised the government for funding the Malaysian-owned timber company.
Premier Lara Giddings said the announcement showed the forestry deal was preserving jobs.
“We knew if we didn’t change, companies like Ta Ann would have to leave the state,” Ms Giddings said.
