A GOVERNMENT rescue package is being developed to assist Forest Enterprises Australia in the same way as a $12 million low-interest loan saved King Island's abattoir from closure last year.
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Premier David Bartlett yesterday said discussions were centring on all the "usual things" that governments could offer to save more than 200 jobs, which remain in limbo while the Launceston timber company attempts to renegotiate a $216 million bank loan.
Opposition treasury spokesman Peter Gutwein yesterday confirmed he had received a preliminary briefing from the Department of Economic Development and was awaiting a further briefing this week.
The Liberals would need to sign-off on any financial assistance under caretaker conventions.
"I would hope that a package could be agreed to to allow FEA to survive financially," Mr Gutwein said.
FEA chief executive Andrew White yesterday released a statement to say that FEA remained in discussions with its financiers over its restructuring plan and financing arrangements.
A restructure plan was refused last week and its securities were suspended.
Mr White said that its plan for asset realisation from its $500 million asset base was the best opportunity for the company to repay the majority of its debt and pave the way for a return to profitability "as the markets for its core businesses improve over time".
Its attempts to sell assets in recent months has proved unfruitful.
"We believe we have presented a rational, realistic and workable plan that will enable us to effectively reduce our current debt," Mr White said.
Mr White said he appreciated the support from the Government and the Liberal Party.
Mr Bartlett referred to previous Government assistance at the JBS Swift abattoir ($12 million to save almost 100 jobs), Burnie's Excelior Call Centre ($3 million to save 250 employees) and Hobart's Vodafone ($3.5 million for 400 jobs) as examples of what could be achieved with Government help.
"People said we couldn't save King Island and we did and ... our opponents said we shouldn't have saved the jobs at Excelior or Vodafone but we did because we believe that that instills confidence in the community, confidence in the economy and in fact the payroll tax going forward will outweigh the expense to taxpayers in those two cases."
