THE $276 million state-federal forests deal is in danger of falling over as demands are made for a government crackdown on protests by greens groups.
Yesterday, one signatory to long-running forest peace talks walked away after timber processor Ta Ann announced up to 40 sawmill jobs would go, and blamed that decision on public attacks by environment groups.
On the same day, 12 of the 15 MPs in Tasmania's upper house took the unusual step of announcing they would block any legislation to create more native forest reserves if such ``eco-terrorism'' continued.
Signatories to the process were due to meet today, but it is understood that's been cancelled as other members back the decision of Forest Industries Association of Tasmania to pull out of talks.
FIAT chief executive Terry Edwards said it was untenable to be involved in a process that was allowing extremist campaigns against the state's forestry industry to continue.
``We are calling on the Prime Minister and the Premier . . . to both personally intervene in this situation and we will not return to the IGA (intergovernmental agreement) table until those two persons can advise us the actions against Ta Ann have stopped, will not resume and that Ta Ann's markets are restored to them,'' Mr Edwards said.
Ta Ann senior resources manager Greg Hickey said the sale of timber products to Japan had halved due to ``persistent market attacks on our customers by environmental groups''.
Mr Hickey said this had forced the company to cut one shift, or up to 40 jobs, from its Huon and Smithton mills and contribute $15 million less a year to the economy.
``The effects of this green campaign will also flow on to our suppliers, our contractors, our transport and freight operators and, ultimately, our communities,'' he said.
``This will also mean a temporary reduction of wood sourced from Forestry Tasmania by about a third until the IGA is concluded.''
At least three other signatories backed the action taken by FIAT and the majority of the Legislative Council.
In response, both the federal and state governments called for the anti-timber industry campaigns to cease.
A spokeswoman for Prime Minister Julia Gillard said protecting forests would only be possible under a long-term agreement reached as part of the IGA.
``This must include the end of campaigns which seek to sabotage timber communities. These campaigns don't just attack jobs, they attack the chances of protecting our forests. It's impossible for this to happen while industry is under attack,'' she said.
Economic Development Minister David O'Byrne, who was the only member of state cabinet available for comment during the South's public holiday yesterday, called for protest action to cease.
``We call on these green groups to be part of the solution and not part of the problem,'' Mr O'Byrne said.
``They run the risk of dragging us back into this old divide and old kind of battle where nobody wins.''
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