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Forestry Tasmania with the Tasmanian Government's agreement has slowed down the roll out of a transport subsidy provided by the government to offset the increased costs associated with the extended closure of the Triabunna woodchip mill.
There was concern that the subsidy provided in late October to facilitate the transfer of product that would otherwise be exported through Triabunna to the north of the state would be exhausted by Christmas.
Forestry Tasmania's General Manager Operations Steve Whiteley said by slowing down the roll out, the benefits would continue to be delivered to the industry well into the first quarter of the New Year.
"This is all about driving the limited funds available further. It is unlikely the Triabunna mill will re-open before well into the New Year, and there was concern the subsidy would be exhausted before the mill was operational.
"We note that the closing date for expressions of interest to operate the mill do not close until the day before Christmas, and clearly it will be some time beyond that date before the mill can re-open."
Mr Whiteley said the adjustment in the subsidy roll out was made possible by news last month that Asian customers had deferred two shipments out of Bell Bay in the lead up to the Chinese New Year.
"Since then, one of those shipments has been re-instated, and FT has just finished loading a shipment of pine chips and export peeler logs and a further shipment is planned before the end of the month.
"These shipments are part of an agreement to supply 150,000 tonnes per annum of export peelers to a Chinese customer, which is working with FT to develop a range of engineered wood products."
Mr Whiteley also released documents under Right to Information. http://www.forestrytas.com.au/right-to-information/release-of-information/7-lists-and-registers
"The situation has changed since these documents were prepared in October. Although we are not through the crisis yet, there has been some improvement over the past few weeks.
"By adjusting the roll out of government assistance, and by finding new markets, the industry can approach the New Year with slightly more optimism."
ENDS
6 December 2011
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