timber industry 'false hope' at woodchip sale

Updated 3 hours 59 minutes ago


Gunns woodchip mill at Triabunna on Tasmania's east coast is one of two shutting down because of poor sales overseas. (ABC News: David Hudspeth)

Tasmanian forest contractors say they were given false hope from the state government, that a major woodchip sale would prevent job losses.

Two weeks ago the Minister for Resources, David Llewellyn, announced a plan to sell an extra 800,000 tonnes of woodchips to Asia.

He said it would prevent timber company Gunns' two month shut-down of its Longreach and Triabunna mills, and save about 150 forest contractor jobs.

But Rodney Bishop from the Forest Contractors Association says the mills are still closing and people are losing their jobs.

"Everybody was excited but excitement's sort of turned the other way at the present time because nothing's happened," he said.

"I mean we always made the assumption that once it was signed there was going to be a lag time, but no we've had no contact from them at this stage to say it's imminent or it's going to happen.

"I guess it would have been better to have not known anything about it until it was actually signed.

"But at the present time I guess it was false hope, people are not working, the shut downs are still in place and that's the situation at the moment."

The government has been contacted for comment.

Tags: forestry, timber, tas, hobart-7000, launceston-7250, triabunna-7190

First posted 4 hours 4 minutes ago