Two-year plan for forestry
FORESTRY Tasmania will be smaller and more efficient under the state government’s plans for more private sector involvement in the industry.
Resources Minister Paul Harriss yesterday began a two-year restructuring process for the state-owned company that will involve an unknown number of job losses.
A review of the Forestry Tasmania found that the company’s current business model was unprofitable, unsustainable and exposed the government to significant financial risk.
Mr Harriss said the company’s final operating model was yet to be decided, and would be the subject of consultation over the coming months.
However, he said the government would not continue to prop up Forestry Tasmania, and the company will be allowed to go further into debt to fund the restructure.
‘‘The future of the industry must be in the hands of the private sector,’’ he told Parliament.
Forestry Tasmania chairman Bob Annells said the company should be restructured to fit the current forestry market.
‘‘We only ever saw our current operating model as appropriate when we were filling market failure, like with the GFC for instance,’’ he said.
‘‘Those days are finished and we need to change with the times, quite frankly.’’
Opposition Leader Bryan Green said the state government had washed its hands of Forestry Tasmania.
‘‘The government’s new proposal for the forest industry is dishonest, deceptive and a betrayal of the sector,’’ he said.
‘‘Selling Tasmania’s forest assets and shifting responsibility to the private sector to save the industry is a shocking cop out.’’
Greens Leader Kim Booth said yesterday’s announcement confirmed what he had been saying for years.
‘‘The problems facing Forestry Tasmania are real, there is no more money, and the minister doesn’t have a plan to resolve the situation,’’ he said.
Forestry Tasmania recorded a loss of $43.1 million for the 2013-14 financial year, and was propped up by a $30 million equity transfer from electricity distributor TasNetworks.
Resources Minister Paul Harriss began a two-year restructuring process for the company yesterday, but Forestry Tasmania chairman Bob Annells said it should be restructured to fit the current market. Picture: DANIEL McCULLOCH