AN EIGHT-MONTH study released yesterday should dispel the myth once and for all that Tasmania's forest industry is heavily subsidised, says forestry chief Hans Drielsma. The Forestry Tasmania executive general manager said that the report showed that tourism and agriculture were way ahead of forestry and timber processing when it came to government assistance and returned less for the dollar investment. Dr Drielsma was speaking at the release of the report prepared by Tasmanian economist Bruce Felmingham and IMC-Link. "It is clear from the report that all sectors studied delivered significant benefits to the community," Dr Drielsma said. "Discussion of subsidies rarely considers the economic benefits generated - this report clearly shows that subsidies benefit consumers as well as producers and generate jobs and income for Tasmanians." Dr Felmingham looked at five major industry areas - tourism (holiday makers only), tourism (all visitors), agriculture, forestry and timber processing, energy and mining and minerals processing. He spent about eight months analysing federal and state data to determine the level of subsidy then at the contribution of each sector. He established a subsidy intensity index to work out the "bang for buck" governments received for each dollar of assistance. The report showed that the forest industry generated $56 for every dollar received in government subsidies compared to $15 for the tourism industry. Forestry Industries Association of Tasmania chief executive Terry Edwards said that the economic return was not the only proof of success. "You have to read all the figures - tourism might show a slow return for the dollar invested but it has social infrastructure benefits," Mr Edwards said. Forestry sat in the middle of the five industries looked at in terms of return for investment. It came after tourism and agriculture which returned $24 for every $1 and before energy, on $150 for every dollar and mining and minerals processing, on a $167 return for every dollar invested. Dr Felmingham said that all five industries subsidised benefited the growth and development of the state's economy. "Subsidisation has had a positive economic effect in the past and will do so in the future if well targeted," he said. Mr Edwards said that the report had been commissioned to get accurate information on the level of government subsidisation. The findings will be presented to the State Government today.