26 July 2011
Australian Prime Minister Julia Gillard and Tasmanian Premier Lara Giddings have announced a Heads of Agreement, backed by up to $276 million, to fund the restructure of the Tasmanian logging industry. Key points of the announcement include:* $85 million in immediate assistance for workers and contractors guaranteeing at least 155,000 cubic metres per year in wood supply, 12,500 cubic metres per year of speciality timbers, subject to verification and 265,000 cubic metres of billets;
* Existing wood supply contracts to be honoured and the Australian Government to fund a voluntary exit mechanism to enable further native wood supply capacity to be retired and reserve areas increased when suitable plantation wood supply is available;
* $120 million in Australian Government investment over 15 years, including $20 million in 2011-12, to develop and diversify the Tasmanian economy to drive new job opportunities; and,
* $43 million to implement the Heads of Agreement including funding for a range of activities such as working with communities through the transition and provide voluntary compensable exits to sawmillers wishing to exit the native forestry industry.
The federal and state govermentswill finalise the agreement within 14 days.
The State and Federal Greens have rejected the agreement, saying it didn't meet some of their fundamental expectations.
Leader of the Tasmanian Greens Nick McKim says while they weren't locked out of negotiations, it was a case of State Labor government, dealing with Federal Labor.
Liberal Senator Richard Colbeck's press release had the headline- "Tasmania just got screwed". He says "There has been no consideration of the impact on other industries, particularly the mining industry. We have been locked out of our slice of the mining boom again by green ideology."
Michael O'Connor is the national secretary for CFMEU and thinks it lays a good foundation for a lot more work. He congratulated the governments' efforts and says it highlights the need for a plantation-based industry.
Dr Phil Pullinger from Environment Tasmania is a signatory to the Statement of Principles and remains committed to finding a workable outcome.
Part of the agreement is that protests cease - an unachievable concept according from Lily Lay of environmental group Still Wild, Still Threatened.
Sources: ABC News and Australian Forest Products Association