Senate debates

Wednesday, 6 February 2013

Questions on Notice

Tasmanian Forests Intergovernmental Agreement (Question No. 2452)

Photo of Stephen ConroyStephen Conroy (Victoria, Australian Labor Party, Minister for Broadband, Communications and the Digital Economy) Share this | Hansard source

The Minister for Sustainability, Environment, Water, Population and Communities has provided the following answer to the honourable senator's question:

With reference to expenditure under the Tasmanian Forests Intergovernmental Agreement (TFIA) between the Commonwealth and the Tasmanian Governments:

(1) The package of assistance to support workers made redundant as a result of restructuring in the forestry industry in Tasmania includes support through Job Services Australia (JSA). Total expenditure for JSA services for the period 1 June 2011 to 31 October 2012 is approximately $1.2 million.

Funding is dispersed to JSA providers across all states according to where eligible redundant workers chose to register for employment support. A full list of JSA providers is included in the response to question 11.

The Australian Government announced that $2 million in 2011/​12 would be provided through the Innovation Fund with proponent O'Group and subcontractor ForestWorks. This project concluded on 30 June 2012.

The government also announced $3.9 million in 2012 through a contract with proponent ForestWorks to continue delivery of these project officer services. As at 31 October 2012, total expenditure to date under this project is $1.3 million.

(2) Funding under clause 13 of the TFIA was provided by the Tasmanian Government. The allocation and use of that funding is a matter for the Tasmanian Government. This funding contribution is in addition to the funding provided for under clause 12 of the TFIA.

(3) Consistent with clause 14 of the TFIA, Rural Alive and Well has received $500,000 in 2011/​12, provided by the Tasmanian Government, and $300,000 in 2012/​13, provided by the Commonwealth Government. An additional $200,000 of Commonwealth Government funding is also committed to be provided to Rural Alive and Well in 2012/​13. This funding is in addition to the funding provided for under clause 12 of the TFIA.

(4) The Australian Government has funded one contractor exit program under the TFIA: the Tasmanian Forests Intergovernmental Agreement Contractors Voluntary Exit Grants Program (IGACEP). Approximately $42.6 million was paid to harvest, haulage and silviculture contractors under this program.

(5) The total amount spent on programs is as follows:

(a) Tasmanian Forest Contractors Exit Assistance Program: approximately $18.2 million was paid to grant recipients under this program.

(b) Tasmanian Forest Contractors Financial Support Program: approximately $5.6 million was provided to the Tasmanian Government to administer this program, including $216,000 for administration costs. Grants provided to recipients totalled approximately $5.4 million.

Note that the programs at 5a. and b. were not funded through the TFIA– these were part of a separate funding package announced by the Commonwealth and Tasmanian governments on 23 November 2010, to provide exit assistance and ongoing business support for Tasmanian forest contractors.

(c) Tasmanian Forests Intergovernmental Agreement – Contractors Voluntary Exit Grants Program: approximately $42.6 million has been paid to recipients under this program, and approximately $980,000 was provided to the Department of Agriculture, Fisheries and Forestry for administration costs.

(6) As required by clause 34 of the TFIA, the Australian Government provided $43 million to the Tasmanian Government to facilitate implementation of the TFIA. This funding was supplemented by an additional $7 million as per clause 35 of the TFIA.

Consistent with clause 22 of the TFIA, the Tasmanian Government engaged in a process with Gunns Ltd to ensure that a sufficient volume of native forest sawlog supply was retired to achieve the outcomes of the TFIA.

The Tasmanian Premier announced on 14 September 2011 that Gunns Ltd had formally agreed to accept an offer of $23 million to retire its residual rights over native forest harvesting and to resolve disputed debts between Gunns and Forestry Tasmania. As part of the process the Tasmanian Government also reached agreement with Forestry Tasmania to accept $11.5 million to settle its disputed debts with Gunns.

Of the $50 million provided to the Tasmanian Government under clauses 34 and 35 of the TFIA, remaining funding will be used to support voluntary compensable exits by sawmillers ($15 million) and to provide information to and consult with affected communities.

(7) See the response to question six above.

(8) Funding of $7 million was paid to the Tasmanian Government, in accordance with clause 35 of the TFIA, which provides for an immediate payment in 2011/​12 to support the management of additional reserves. As there were no new reserves added to the estate in 2011, the Commonwealth and Tasmanian Governments agreed that this funding would be allocated to support the outcomes of clause 34 of the TFIA (see the response to question six above). This payment was made, subject to the receipt of advice from the State on 17 October 2011, that the Tasmanian Government had retired native sawlog supply in accordance with clause 22 of the TFIA.

(9) Clause 35 of the TFIA provides for funding of $7 million per annum to the Tasmanian Government to support the ongoing management of additional areas of reserves. This funding is contingent on the passage of legislation to allow formal protection of agreed additional reserves. Accordingly, no payments (beyond the initial $7 million referred to in the response to question six above) have been made to the Tasmanian Government to date.

(10) Funding under clause 41 of the TFIA has been spent on the following:

      (11) See table below.

      Tasmanian Forests Intergovernmental Agreement – Funding breakdown

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