THE Break O'Day Council is frustrated and disappointed it missed out on Tasmanian forestry intergovernmental agreement compensation.
Mayor Sarah Schmerl has written to the municipality's ratepayer base and to 59 state and federal members of Parliament to highlight the council's dismay over its exclusion from the $100 million Tasmanian Jobs and Growth Plan project funding.
Cr Schmerl said yesterday that the council submitted two applications for project funding - one to carry out work on the St Helens foreshore and another to improve access into Georges Bay by fixing Pelican Point and the barway.
Only 31 projects were successful from 400 applications.
"The forest downturn has had a substantial impact on the municipality as we lost more than $400,000 in rates alone and that doesn't include the figures of lost employment and what that means to the community," she said.
"I would say there would be several hundred jobs lost in the past 18 months to two years as forestry was one of our main employment sectors in the area and is now not - this fact needs to be recognised.
"We had a large area of forest activity within Break O'Day with a lot of spin-off effect, not just for employees in the forest sector, but for surrounding businesses and communities."
The latest Australian Bureau of Statistics data shows that the East Coast municipality's unemployment rate sits at 10.2 per cent - the highest in Tasmania.
Cr Schmerl said funding decisions were made based on September's federal election to help politicians secure seats and that the much criticised process needed reviewing.
"To move forward we need to see some more funding allocated and a more fair and consistent approach to how the funding is handed out to different projects," she said.
"I think it is grossly unfair and what has happened is a result of an impending election rather than what is beneficial to communities and who has been hardest affected."
Cr Schmerl she was looking for a response from politicians within two weeks and vowed to inform the community of their responses.