Forestry Tasmania’s Annual Report 2013-14, posting an annual loss of $43.1 million, presents a clear cut case for the Government Business Enterprise (GBE) to move urgently to a full cost recovery business model, Greens Leader and Forestry spokesperson Kim Booth MP said today.
“The staggering loss of $43 million dollars last financial year, despite an increase in timber production and receiving public subsidies, is proof that Forestry Tasmania must now move to a full cost recovery model as the Greens have long called for,” Mr Booth said.
“The figures in this Annual Report say it all. Despite pulpwood volumes doubling, the GBE’s losses increased by around 300 percent, from $14,190,000 in 2012-13 to $43,118,000 in the last financial year.”
“Sawlog and special species volumes hardly changed from the previous year, pulp wood nearly doubled from 363,409 tonnes in 2012/13 to 643,000 tonnes in 2013/14, yet the losses soared”
“Simply put, the more trees Forestry Tasmania cut down, the more their losses increased.”
“430 nurses could be employed for that annual loss of $43 million.”
“Losses per Forestry Tasmania employee increased around 400% from $44,000 in 2012/13 to $171,000 per employee last financial year.” [3]
“It is desperate and disingenuous beyond measure to try and blame this huge financial loss on the TFA, given the timber volumes increased during this annual reporting period. The Minister, Paul Harriss, has no excuse to keep hiding from the fact that clearly the business model is broken.”
“To keep losing money, despite producing more timber and receiving handouts from the public purse is totally insane and proves that the company is not charging enough and producing a product the market does not want.”
“It is now Minister Harriss’ responsibility to stop trying to find someone to blame in the rear-view mirror, but instead move forward and require Forestry Tasmania to move, to a modern full cost-recovery business model.”
“The Liberals boasted they would grow the forestry industry, but all they have done is grow the losses,” Mr Booth said.
