the great rip off by govt in forestry,shame!!!

The Mercury

Workers flock for payouts
SUE NEALES | December 16, 2010 12.01am


MORE than two-thirds of Tasmania's native forest contractors have applied to quit the industry in the hope of snaring a Federal Government handout.

Federal Forestry Minister Joe Ludwig announced yesterday that 83 applications for the Tasmanian Forest Contractors Exit Assistance Package had been received by its closure yesterday.

The Federal Government has made $17 million available to encourage forest haulage and harvesting firms in public native forests to leave the industry with dignity.

With so many applications, payouts would average $205,000.

The industry fears the exit package would only meet the individual needs of just three forest contracting firms.

But Tasmanian Forest Contractors Association chief executive Ed Vincent said some businesses had lodged two applications, one for each part of their forest harvesting and log truck cartage enterprises.

If both applications were accepted, the average payout for big firms would be $410,000 each.

Mr Vincent estimates 60 contractors of the total of 90 businesses involved in native forest harvesting in Tasmania have applied for exit deals.

Many are employed under contract to Gunns Limited and have been told there will be no work from Christmas once its Hampshire and Bell Bay woodchip mills shut.

Mr Vincent predicted many would reject a $205,000 payout as it would be insufficient to meet debts on trucks and machinery or to pay out employees with full leave entitlements.

Surveys show most contractors have average debts or cash shortfalls of $1.25 million each.

Successful exit grant recipients will need to leave the forest contracting industry by disposing of equipment and agreeing not to return to the sector for at least five years.