Joe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | Hansard source

I thank Senator Polley for her question and note her ongoing interest in the Tasmanian forest industry. The Gillard government understands the financial hardship facing forestry contractors in the Tasmanian haulage and harvest sectors. We are committed to building a viable forest contracting sector that can support communities and work throughout Tasmania. That is why we have committed $22.4 million today to support the industry, and what the government announced represents a balanced response to a very difficult problem.

There are three elements to the $22.4 million package that I announced with Minister Green from Tasmania today. They are: assistance of up to $750,000 each to help contractors exit the business with dignity; for viable businesses, a pool of $5.4 million in business assistance, which will be delivered by the state government; and fairer contracts to support a viable, ongoing industry. Each of these elements is focused squarely on delivering a leaner, stronger, more viable contracting sector in Tasmania for the future.

Whoever I consulted on this issue—whether from industry, the contractors association, the state government, the community or the CFMEU—there was widespread agreement that there was an oversupply of contracting services in the native forest sector in Tasmania, and that this was seriously threatening the viability of the industry. The exit grants contained within the package are in direct response to this stakeholder feedback.

The government recognises that exiting is only part of the answer to this problem. That is why we are delivering two other crucial elements within the package to deliver better viability for the industry in the future. These are— (Time expired)