FOREST contractors have slammed a Commonwealth proposal to cap their compensation at $1 million a business claiming it will short- change some by millions of dollars.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Under the $276 million state- federal forestry deal, $45 million was set aside to compensate those contractors put out of work due to timber company Gunns Ltd exiting native forests.
However, while Gunns received $23 million under the agreement signed on August 14 and Forest Tasmania $11.5 million - not a single dollar has been handed to contractors.
Tasmanian Forest Contractors Association chief executive Ed Vincent said last night he was informed late last Friday that the Commonwealth was planning to cap compensation for individuals at $1 million - against industry wishes.
"The (federal Forestry) minister (Joe Ludwig) has failed to recognise that there is a big range of business sizes within the forest contractors sector ... and that there are 10 to 12 contractors who will now go into bankruptcy because of this process.
"We are now calling on the Prime Minister to intervene in this whole sorry mess," he said.
Mr Vincent said the industry had argued that compensation be calculated based on the volume of material that was harvested or hauled by contractors.
"It's something of a breach of faith that contractors impacted by this whole process should be treated inadequately and inequitably," he said.
"The minister asked us to be involved so this process was without controversy and we have done all we can to ensure that is the case."
A spokeswoman for Senator Ludwig confirmed the suggested $1 million cap last night.
"The Government remains concerned to ensure that contractors assistance is available to the largest possible number of contractors including sub- contractors," she said.
"The Government has written to the TFCA suggesting a cap of $1 million dollars per applicant.
"Everyone knows contractors are doing it tough. This cap seeks to get the balance right between assisting as many contractors and sub- contractors as possible.
"We have been working closely and constructively with the TFCA and we look forward to receiving a response from them."
Premier Lara Giddings could not explain the delay in compensation payouts yesterday, saying it was a matter for the Commonwealth.
