Forestry Tasmania posts $43m loss, Minister blames peace deal
The Tasmanian Government is blaming the forest peace deal brokered under its predecessor for another big loss posted by Forestry Tasmania.
The Government-owned forest estate manager lost $43.1 million after tax in the financial year that ended in June.
That was despite the previous Labor-Greens government handing the company $37 million during the year in a bid to keep it solvent.
Resources Minister Paul Harriss told Parliament the peace deal that led to the creation of new native forest reserves was to blame for the result.
"Forestry Tasmania has had another very challenging year," he said.
"It has advised me that the reduction in land area under the Tasmanian Forest Agreement (TFA) was a significant contributor to its difficulties."
Greens MP Nick McKim claimed the loss was the result of poor markets.
"You haven't got a market," he told Parliament.
Minister 'optimistic' of improvement
Mr Harriss said he was hopeful Forestry Tasmania's long run of losses would end over the next four years.
"I am optimistic that that will be the case, and it's all about rebuilding the industry," he said.
"First of all we have to rebuild from the mess that we inherited, and then grow the industry on the back of that."
But former resources minister and now Opposition Leader Bryan Green said there was virtually no chance of a profit in the next four years.
"We were up front with the Tasmanian people and said that it required some support from the consolidated fund to exist on into the future, to get to a point where they were neutral and or hopefully making a profit," he said.
"We knew that it was at least four years out before we could be in a position to even reasonably expect that Forestry Tasmania to be on the front foot."
Greens leader Kim Booth argued it was time Forestry Tasmania was forced to make a profit.
"Beyond doubt it is time that Forestry Tasmania moved to a full-cost recovery model," he said.
"Because these figures are alarming, there's $43-million worth of losses, which is a 300-per cent increase from last year."
External factors at play: Forestry Tasmania chairman
Forestry Tasmania's chairman Bob Annells said as well as legislative changes the business had been impacted by external factors, such as a high exchange rate.
He said it had also been affected by restricted access to "critical processing and export sites" in the south and north-west.
The valuation of forest assets available to the agency had reduced by $18.9 million.
Mr Annells said it reflected a big reduction in the area of public production forests but the board remained focused delivering a commercial return.
"Forestry Tasmania is determined to improve its financial performance as we have a very important job to do on behalf of all Tasmanians," he said in a statement.
Labor leader Bryan Green said the Government had done nothing to secure the organisation's viability.
The Government has reclassified 400,000 hectares of forest for potential logging in six years' time.
