The Tasmanian State Government has rejected calls for it to play a greater role in stimulating the struggling forestry industry, a position that has drawn strong criticism from the Opposition. Source: ABC News
Local forestry businesses say their trade is struggling and confidence has suffered since the Gunns Group collapse last year.
Gunns owes several South Coast timber and transport companies sizeable sums, with the largest amount more than $2 million.
Woodchip exports out of the Albany port have fallen 30% from export levels of a few years ago to an expected total of just 1.2 million tonnes this financial year.
Forestry minister Terry Redman said the global financial crisis is the main reason for the industry’s struggles and it will improve once the economy rebounds.
“We still have a strong woodchip sector,” he said. “We’re at one of the lowest points we’ve seen, of course that’s going to affect some of those export markets and the woodchip industry has certainly been impacted by that.”
Redman rejects the need for the Government to do more.
“I don’t think that Government needs to play a particular stimulus role in that,” he said.
“There’s enough incentive there, particularly when the economy starts to pick up, that we will see a lot more woodchip than is currently going out through our ports.
“What’s important to note is we still have a strong woodchip sector here and there’s still product going out through the Albany port.”
The Opposition’s Mick Murray has labelled that view simplistic. He says the industry will continue to suffer while the Government fails to show confidence in it and actively boost the plantation sector.
“This is the time when Government need to become involved, where they should be showing confidence in the industry and not withdrawing their funding and trying to sell their share in the woodchip industry as well,” he said.
“You’ve got to have leaders within the industry. We believe that we can get out there and play an active role and bring the confidence back to this industry.”
