Liberal Party claims that the State Government is responsible for the forest industry downturn were blown away at today's Budget Estimates hearings.

The Deputy Premier Bryan Green challenged the Liberals to finally acknowledge changing markets and Australia's high exchange rate were the major factors in the restructuring of the forest sector.

 
"This has nothing to do with Government policy as the Liberals are trying to get people to believe," Mr Green said.

 
"As a Government we are managing our way through the change that is occurring in the forest industry.

 
"The Liberal Party has made no constructive contribution to help provide a lasting solution that will put our forest industry on a sustainable footing.

 
"The Liberals are effectively saying there is no problem and want to tear up the Intergovernmental Agreement which was called for by industry, unions and environmental groups.

 
"The IGA has not cost one single job in the forest sector but has provided around $100 million to help assist businesses and workers through the transition that is occurring.

 
"On one hand the Liberals say they support financial assistance for forest contractors and workers but oppose the only means of delivering it through the TFA.

 
"It is time the Liberals stopped playing politics with peoples' lives and faced up to the issues confronting the forest industry in Tasmania," Mr Green said.