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Tas timber processing hub stalled by Government

Plans to establish an integrated timber processing hub near Scottsdale in Tasmania have stalled over a new government process. Source: ABC Rural

A federal funding promise of $2.3 million to Dorset Renewable Industries for a hub at Ling Siding is hanging on the project satisfying a new Coalitions ‘value for money’ test.

Dorset Renewable Industries says it has negotiated to buy industrial land at Ling Siding with the grant to co-locate existing and new wood processing businesses.

Chairman David Hamilton said the deal to purchase most of the industrial land at Ling Siding from RNG Property Developments needed to be completed by the middle of 2014.

Hamilton said that while the federal government has confirmed the grant is available it has been made conditional upon meeting the ‘value for money’ test.

“The incoming Federal Government have promised grant under the Tasmanian Jobs and Growth Plan,” he said.

“The guidelines for the value for money test are still being finalised.

“The paperwork we need to complete for that value for money test reads very much as if we are actually applying for the grant from scratch.

“Until we see the final test, we have no feel for how closely our plans match the kind of projects the new Government has in mind.”