SUN 24 JULY 2011
Prime Minister,
Premier of Tasmania
Prime Minister Julia Gillard and Tasmanian
Premier Lara Giddings today announced an
historic agreement on the future of forestry
in Tasmania.
In the face of changing market conditions,
both in Australia and around the world,
it has become clear that the pressure on
the Tasmanian forestry industry in its current
form is not sustainable.
Today’s agreement will secure jobs, ensure
a sustainable forestry industry, and achieve
iconic environmental outcomes by protecting
High Conservation Value forests and remaining
old growth forests for future generations.
The Heads of Agreement, backed by up to
$276 million, will also support workers
and their families affected by industry
restructure.
Under the Heads of Agreement:
The Australian and
Tasmanian Governments will provide up to
$85 million in immediate assistance for
workers and contractors who are losing their
jobs and livelihoods as a result of industry
restructure. This will include employee
assistance, retraining and relocation support
and assistance for voluntary permanent exits
from native forest operations for haulage
and harvest contractors;
Facilitate sustainable
opportunities for the Tasmanian forestry
sector with the Tasmanian Government guaranteeing
at least 155,000 cubic metres per year in
wood supply, 12,500 cubic metres per year
of speciality timbers, subject to verification
and 265,000 cubic metres of billets, with
existing wood supply contracts to be honoured
and the Australian Government to fund a
voluntary exit mechanism to enable further
native wood supply capacity to be retired
and reserve areas increased when suitable
plantation wood supply is available;
The Tasmanian Government
will reserve and protect 430,000 hectares
of native forest from within the 572,000
hectares nominated through the Statement
of Principles process, and place the full
572,000 in informal reserve subject to an
independent verification process of conservation
values and compatibility with yearly guaranteed
wood supply, led by Professor Jonathan West.
The findings will determine the area of
High Conservation Value forest to be reserved,
with $7 million a year for their ongoing
management to be provided by the Australian
Government following incorporation into
formal reserves;
$120 million in Australian Government investment
over 15 years, including $20 million in
2011-12, to develop and diversify the Tasmanian
economy to drive new job opportunities for
Tasmanian families, including through job-creating
projects in communities affected by forestry
restructure. A new ministerial advisory
council to be chaired by Mr Bill Kelty AC
will drive new regional development opportunities
and a new place-based investment Memorandum
of Understanding (MoU) between the two governments;
and
The Australian Government will provide $43
million to implement the Heads of Agreement
including funding for a range of activities
such as working with communities through
the transition and provide voluntary compensable
exits to sawmillers wishing to exit the
native forestry industry.
The Heads of Agreement is consistent with
the Statement of Principles agreement between
environment non-government organisations,
the Tasmanian forestry industry and the
CFMEU, which was presented by independent
facilitator Mr Bill Kelty last month.
It means the forestry industry can continue
on a sustainable footing, and guarantees
ongoing supply for existing businesses that
are critical to supporting jobs and regional
communities in Tasmania.
The Australian and Tasmanian Governments
thank the signatories to the Statement of
Principles and Mr Kelty for their commitment
and hard work.
The Statement of Principles process and
the Heads of Agreement reached today creates
an opportunity to move forward after decades
of conflict and build a stronger future
for Tasmania.
Governments recognise the significant challenges
faced by the industry in the face of global
economic and market conditions as well as
the historic opportunity provided by forestry
and environmental parties coming together
to agree on a framework for delivering a
sustainable future for the forest industry
and the environment.
We also recognise that these challenges,
as well as the decision by Gunns Limited
to exit from native forestry, will have
significant impacts on workers, communities
and the Tasmanian economy.
The Governments clearly expect that following
today’s historic agreement environment and
industry stakeholders will end the long-running
conflict over native forestry.
The Governments also expect that the Tasmanian
Parliament will pass the required legislation
by 30 June 2012.
The Australian and Tasmanian governments
will work together to identify and support
regional economic development through a
partnership to create investment and jobs
opportunities, particularly for regional
communities.
The Australian and Tasmanian Governments
will also work together to examine and identify
potential opportunities from increased reserves
from the Commonwealth Biodiversity Fund.
In October last year, the Tasmanian forestry
industry and several environmental non-government
organisations reached a Statement of Principles
for protecting native forests and developing
a sustainable timber industry in Tasmania.
The Australian and Tasmanian Governments
appointed Mr Bill Kelty as an independent
facilitator to facilitate talks on the Statement
of Principles agreed to between environment
non-government organisations, the CFMEU
and the forestry industry in Tasmania.
