Timberlink to complete Bell Bay sawmill upgrades with $3.5 million in bipartisan federal funding

Tasmanian Liberal senator Richard Colbeck and candidate for Bass Bridget Archer made the announcement on Monday morning at the site, which Labor matched later in the day after also being in discussions with the company.

It was the final funding needed for the $30 million upgrade and would enable the purchase of a green mill vision scanning system which identifies the highest quality timber during cutting.

Related: Timberlink at Bell Bay seeks federal funding to strengthen future

Timberlink executive general manager David Oliver said the works - scheduled to be complete by the end of this year - would secure the future of the business in the competitive structural timber market.

"We're seeing logs getting smaller, and a lack of prune log into the future, which has really been the backbone of this facility," he said.

"This new laser scanning equipment will ensure we can pull high value structural timber for house construction in Tasmania and outdoor applications well into the future.

"What this is about is providing a viable, efficient, internationally competitive facility way into the future."

IN OTHER NEWS:

The Timberlink sawmill at Bell Bay was the largest in Tasmania and employed almost 200 people, providing timber for housing and outdoor uses such as decking and pergolas.

It also provides timber to the mainland where the company encounters strong competition. Australia imports about 20 per cent of its structural timber.

Mr Oliver said it was vital to ensure the company kept up with the evolving industry.

"The challenge for the timber industry in Australia is there are large capital investments then long periods of decline," he said.

"It's a rapidly evolving industry and if we don't invest and are unable to invest, over time the facility becomes less efficient and we're unable to compete internationally."

Timberlink has already spent $27 million on the upgrades.

Mr Colbeck said the funding showed the coalition's commitment to business and jobs in Northern Tasmania.

In a statement, the Labor Party said the funding was in addition to its commitment to guaranteeing native feedstock supply.

The peak Australian and Tasmanian forestry industry bodies are calling for millions of dollars in federal funding for road upgrades and to secure the future of Launceston's National Institute for Forest Products Innovation ahead of the upcoming election.

The industry is seeking $35 million over three years with matching funding from the state government for road and rail projects recommended by a forestry report.

These include the Plenty Link Road and related rail infrastructure to transport between the Huon and Derwent valleys with links to the northern ports.

The industry is also asking for $1 million over four years for the south east Tasmania regional forestry hub.

The federal government has already committed $1 million for a forestry hub in the state's north and north-west.