Inquiry hears forestry exit targets not met

Friday 10 May 2013

A Senate inquiry has heard a taxpayer-funded program to reduce the amount of native timber harvested and hauled in Tasmania failed to meet its objective reports ABC News. The Federal Government spent AU$45 million to help native forest harvesters exit Tasmania's ailing timber industry.

The inquiry was called after National Audit Office concern that contractors missed out on compensation from the scheme overseen by the Commonwealth Forestry Department. The audit office has told the inquiry it was supposed to reduce the volume of native forest harvested by 1.5 million tonnes but that was not achieved.

Forestry Tasmania's Bob Gordon has revealed the state-owned company increased its harvesting contracts by about 200,000 tonnes after the federal payments were made. "Too much harvest and transport capacity was lost and FT was left in a position where it had no alternative but to increase the capacity," he said.

Mr Gordon says the federal Forestry Department had ignored his warning that buying out contractors would hamper Forestry Tasmania's ability to meet its obligations. Forestry Tasmania has defended its actions in relation to federally-funded payouts. An update on the inquiry can be found here.
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