The Federal Government has cut $46 million in funding for Tasmania’s forestry agreement in the budget update. Source: ABC News
The funding, detailed in the May budget papers, was to support the implementation of the agreement struck under the former Labor government, as well as the ongoing management of additional native forest reserves.
The State Government repealed the deal in October 2014, removing protection from 400,000 hectares of forest.
The Mid-Year Economic and Fiscal Outlook (MYEFO) papers stated the Federal Government would achieve savings of $46 million over four years from 2014-15 from the termination of the Tasmanian Forests Intergovernmental Agreement.
It said the savings would be redirected to repair the budget and fund policy priorities.
Tasmanian Greens senator Nick McKim said it was a short sighted cut which would impact on programs like invasive species responses, fire management and threatened species protection.
“This is a $46 million hit to Tasmania which the Liberal Government tried to sneak under the radar by burying it in MYEFO, just 10 days out from Christmas,” he said.
“This funding would have provided for management of Tasmania’s world class reserve system, including iconic areas and species.
“Our wilderness is by some margin the biggest drawcard for tourists visiting Tasmania.
“Yet, typically for the Liberals, it’s seen as non-essential spending.”
On 936 ABC Hobart, Liberal senator Richard Colbeck countered, saying Tasmania had come out well ahead financially in terms of federal funding.
“We’ve got $200 million for the freight equalisation scheme that we didn’t have … and we’ve got an extra $60m for the irrigation scheme’s tranche two,” he said.
“So Tasmania is over $200 million in front of where it was.”
Senator Colbeck said the funding was being directed into growing the forestry industry instead of shutting it down.
“We fought very, very hard this year and achieved a significant amount for Tasmania,” he said. “And if a trade-off, if you like, for the extra $260-odd million that we’ve got for things that will actually transform and assist the growth of the [forestry] industry versus spending taxpayers’ money to shut an important industry down, then I think we’ve done exceptionally well.”
