NICK CLARK mercury
May 11, 2010 07:56am
TASMANIA is facing an exodus of forest workers because of the deepening crisis in the industry.
An industry leader yesterday said workers would head to West Australian mines, leaving the Tasmanian industry crippled.
And a logging contractor revealed he had already moved much of his business interstate because of the severe downturn.
The gloom deepened as a group of contractors yesterday held a crisis meeting in Launceston attended by Opposition Leader Will Hodgman.
Timber Communities Australia state manager Barry Chipman said he had never seen the industry in a worse state.
"I have been involved since 1969 and there have been ups and downs and things have been a bit tight but personally I have never seen a situation like we are confronted with right now anything that could be against us is against us," he said.
"We have great Tassie companies going under and the likes of the Greens and the Wilderness Society are reaping what they have sown."
Mr Chipman said the Forest Industry Plan launched in the lead-up to the state election was not going to save the industry in the short term and a financial assistance package was needed.
"The forest industry growth plan is a pathway for the future but if there is no one around to take that journey all the best-laid plans in the world count for nothing," he said.
Forest workers were already considering packing up and moving to Western Australia to take advantage of the mining boom.
Mr Chipman said the exodus of forest workers would rip the life out of many of Tasmania's proud rural towns.
"The skill set you need to work in the forest industry adapts you well to working in the mining industry, where you can earn $150,000 and $200,000 a year. Why would you come back?" he said.
Kelly Gerke, spokesman for the seven contractors, said an exit package for contractors was needed.
Contractors had been carting about 30 per cent to 40 per cent of their normal pulpwood quota because of the downturn in the woodchip industry, he said.
"We also got a double whammy with the FEA [Forest Enterprises Australia] collapse," he said.
"We have contractors involved in silviculture and who are really, really hurting."
Mr Gerke said he had no silviculture work and the end of Gunns' managed investment schemes meant further pain.
"Last year I had 25 machines clearing and preparing for plantations and this year I have one," he said.
Logging cartage for Gunns had "absolutely stopped".
Mr Gerke said the seven contractors had cut jobs from 480 to 240 in the past year.
He had cut his workers from 70 to fewer than 10.
Mr Hodgman said the $1.8 million government support package had excluded a number of contractors.
"The Government needs to look at bridging finance, short-term interest-free loans that will enable these people to survive," he said.
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