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Forestry Public Subsidies


Kim Booth

Kim Booth  -  Sunday, 29 June 2014

Tags: Forestry Tasmania, Subsidies

The Hodgman government must detail their Plan B to keep Forestry Tasmania solvent, as the end of financial year deadline for the withdrawal of public subsidies looms tomorrow, Greens Leader and Forestry spokesperson Kim Booth MP said.

 “Despite asking numerous times in the Parliament whether the Hodgman regime has a Plan B to keep Forestry Tasmania financially viable in light of their election promise that subsidies will cease on the 30th of June, no details have been forthcoming,” Mr Booth said.

“There is only one day left before Premier Hodgman must come clean regarding how he intends to keep propping up Forestry Tasmania.”

 “Forestry Tasmania should move to a full cost-recovery business model by the 1st of July this year, but the Liberals have refused to commit to this happening, and have also refused to rule out other forms of public largesse going into propping up the industry.”

“This leaves as the only other option that the Hodgman regime intends to backflip on their election promise and continue to prop up Forestry Tasmania.”

“It is outrageous that they have refused to be upfront with the Tasmanian taxpayer about their plans beyond Monday.

“Everyone knows that either they continue to prop up Forestry in the absence of a full cost-competitive business plan, or the government business enterprise falls insolvent.”

“The Greens want to see the forestry industry make a full transition off the public purse and into a sustainable business model which sees royalty rates charged that reflect both the true costs and a commercial margin.”

“Come on Mr Hodgman, stop insulting the intelligence of the Tasmanian people, and just come clean with how you intend to keep propping up Forestry Tasmania and its broken business model,” Mr Booth said.