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Gunns timber buy back talks
Updated 1 hour 12 minutes ago


The minister would not reveal the costs of a native forest buyback. (7.30 Report)

It is been revealed the Tasmanian Government is already in talks with the timber company Gunns about buying back its native forest contracts.

The Resources Minister Bryan Green told a budget estimates hearing last night Treasury had met Gunns to discuss the issue of resource buy backs.

"This all goes to supporting the priniple process, it's about making sure the inudstry has a future," the minister said.

Mr Green would not reveal any details about costs, saying there is still no agreement.

"If there is a decision to be made it will be made that's above board in regards to the process," he said.

The Resources Department secretary, Norm McIlfatrick, says the talks started less than a month ago.

Almost $1 million of taxpayers funds have been spent on Tasmania's forest peace talks so far.

Mr Green told a budget estimates hearing yesterday, the 10 industry and environment groups involved in the talks split $250,000 in funding.

His department has spent more than $280,000 in cultivating an agreement, while Forestry Tasmania got $100,000 to cover its costs.

Mr Green said the Commonwealth footed the $350,000 bill to help the former union boss Bill Kelty facilitate a deal.

"That was in this current year," he said.

The in-principle agreement released last week still has not been signed by the major industry players.

Mill loan

The Treasurer has been asked to decide whether the company which is buying the Triabunna woodchip mill should be granted a State Government loan.

The Economic Development Board has reccommended the Treasurer and Premier, Lara Giddings, consider granting the loan to Fibre Plus Tasmania, which is due to take over the mill this week.

The Greens are urging Ms Giddings against approving the loan, given the state's tight budget situation and forest industry uncertainty.

It is unclear how much money the company wants to borrow.

Federal inquiry

Forestry and environment representatives are today due to appear before a Federal Parliamentary inquiry into the future of the timber industry.

The hearing at New Norfolk is one of several being held around the country.

The committee has received 113 submissions which look at boosting productivity and increasing investment, and how to make forest industries and communities that rely on them more resilient.

Nine groups are expected to address the committee today, including the State Government, the Forest Industry Association and Environment Tasmania.