Under the Hodgman Liberal Government, Tasmania’s forest industry is growing in confidence, with many positive signs and new jobs being created.
Today, I am pleased to advise we have achieved a solution to one of the great challenges left to us by the Labor-Green government: what to do with Southern native forest residues.
This problem was a result of the disastrous Labor-Green forest deal, which aided and abetted in the sale and destruction of the Triabunna woodchip mill.
Forestry Tasmania has now finalised contracts for Southern residue solutions identified through the Liberal Government’s Expression of Interest process.
Majestic Timbers Australia will take up to 180,000 tonnes annually for export in containers from Hobart’s Macquarie Wharf to markets in South-East Asia.
Up to another 150,000 tonnes a year will go to Les Walkden Enterprises, which will transport the residues to Bell Bay, for processing and export for paper production.
Importantly, no public funds have been or will be provided for either of these successful proposals.
Both companies have entered into commercial arrangements that will result in a positive return to Forestry Tasmania, improving its bottom-line.
This means that for the wood taken up by these contracts there will no longer be a need for any form of subsidy to transport these residues to the State’s North.
The Liberal Government is working with a resurgent forest industry to create new opportunities and new jobs – our number one priority.
We have seen new figures from TasPorts recently showing that the export of wood products has more than doubled and passed three million tonnes for the first time in five years.
We have also great interest in the Government’s $1.25 million Wood and Fibre Processing Innovation Program from companies confident and keen to invest, with 41 projects proposed with a total value of $56 million.
Last week I was pleased the visit the State’s largest native forest sawmiller, Neville Smith Forest Products, which, in yet another sign of confidence returning to the industry, is creating new jobs at Mowbray and in the Huon.
As we said we would, the Liberal Government is helping to rebuild Tasmania’s forest industry and while there remains much to do, the positive signs are there.