Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Agriculture, Fisheries and Forestry, Senator Ludwig. My question concerns contractors in Tasmanian forestry.

Honourable Senators:

Honourable senators interjecting—

Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Can the minister inform the Senate—

Opposition Senators:

Opposition senators interjecting—

Government Senators:

Government senators—We can’t hear anything!

Government Senators:

Government senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Senator Polley, continue.

Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

My question concerns contractors in Tasmanian forestry. Can the minister inform the Senate what the government is doing to assist forestry contractors in harvest or haulage sectors in Tasmania?

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

Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Given the minister’s answer that the government has announced a business and exit assistance package for Tasmanian forestry contractors, can the minister explain to the Senate how this package will be rolled out?

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

I thank Senator Polley for her supplementary question. This announcement today delivers on the government’s election commitment to provide much-needed assistance for Tasmanian forestry contractors. The commitment and cooperation between all parties in these discussions has been positive and productive, and the government has appreciated the work and patience of all involved.

This package will allocate $17 million towards exit assistance for eligible haulage or harvest forestry contracting businesses to support their transition out of the industry. The exit assistance can be applied for immediately, with applications closing in the middle of December, and I expect offers to be made to successful applicants before Christmas. The application assessment process will be completed by officials from the Australian and Tasmanian governments, who will also be able to draw on external expertise to assist in the assessment process. Up to $750,000 will be available for each successful eligible business that is predominantly in the native forest sector. (Time expired)

Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a second supplementary question. Can the minister please advise the Senate of any impediments to confidence in the forestry sector while the government has been working to deliver on its election commitment?

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

I thank Senator Polley for her second supplementary question. The government is pleased to be delivering today a balanced set of measures to support viability in the contracting industry. From those opposite there has been a constant tide of negative talk about the forestry industry in Tasmania. The Liberals have played cheap politics and have not given consideration to the workers, their families and their communities. The government acted quickly and worked diligently with all interested parties to develop and implement a series of measures that will assist the development of a viable contracting sector. This has not been helped by the willingness of those opposite to add to the legitimate fears of communities that could potentially be in crisis. This package is good news for forestry contractors, workers and their communities. It is a good package of measures that directly— (Time expired)