CRISIS talks between the State Government and the forestry industry will continue today as contractors fight to survive an unprecedented downturn.
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Tasmanian Forest Contractors Association executive officer Ed Vincent yesterday met Resources Minister Bryan Green to begin discussions but neither party would say what sort of package was needed.
Premier David Bartlett and Treasurer Michael Aird will join Mr Green and industry representatives at today's meeting, which aims to establish a short-term survival plan.
The state's 120 contracting companies have halved their workforce from a combined total of about 800 during the past year as the downturn hits.
Mr Vincent said he hoped money, additional to the $1.8 million already assisting those struggling with interest payments, would be forthcoming in next month's budget.
But, Mr Vincent said it was yet to be determined what sort of money was needed and how exit packages should be structured.
He also said it was not known how many contractors was a sustainable number.
Mr Green said a "well- thought-out plan" was being developed to assist in the next three to five months.
"We want to ensure that the industry is maintained so that when volumes pick up or when we establish where the industry is heading on into the future, we have an industry to pick up," Mr Green said.
"We don't want the industry to implode."
Mr Green and Mr Vincent said the Gunns $2.5 billion pulp mill was a logical step to assist but other areas being investigated to help boost activity in the sector included pellet fuel, bio-generation and engineered timber products.
But there is no one on the horizon with a cheque book poised to fund such initiatives.
Mr Bartlett said the industry was in crisis and change was urgently needed.
Opposition Leader Will Hodgman said the state and Federal governments needed to offer a bridging package for contractors, assist displaced workers to find work in Tasmania, extend the Regional Forest Agreement and initiate an independent structural review.
Greens leader Nick McKim said he believed the party's forest transition strategy "More Jobs, Less Logs" was a blueprint to protect high- conservation value forests, meet market expectations and create more jobs.