before the vote - what have we all learnt?, page-7

Well we are still getting it in the neck,


Posted Tue Dec 1, 2009 10:11am AEDT
Updated Tue Dec 1, 2009 10:41am AEDT


Forestry Tasmania says the fall in demand is being felt throughout the entire industry. (ABC News: Fiona Breen)
Forestry Tasmania says it has been hit hard by the global economic downturn.

The company has told a Government Business Enterprise hearing it made an operating profit of $9.3 million last financial year, a slight increase on the year before.

But the Chairman, Adrian Kloeden, says demand fell dramatically in the second half of the year and contractors are working at three-quarters of their normal quota.

"The downturn has persisted since December and is deeper, and more prolonged, than we'd expected," he said.

"The global financial crisis has impacted demand in our largest market, Japan, and reduced demand has continued into 2009-10 and has adversely affected us, our contractors, and the entire forest industry."

Mr Kloeden expects a smaller profit this year.

"What we can see ahead is a very difficult time and the difficulties are continuing," he said.

"This is a month-by-month proposition.

"Decline in demand is likely to continue well into calender 2010."

Tags: forestry, tas, hobart-7000, launceston-7250