The Tasmanian Government has refused to compensate councils who expect to lose millions of dollars because of the forest agreement. Source: Yahoo7
Twelve regional councils say they stand to lose about $2 million a year in rates when some Forestry Tasmania production forest is converted to reserves.
The Resources Minister Bryan Green has rejected calls for extra government assistance for the councils.
The Local Government Association’s Allan Garcia said some councils will be hit hard.
“A council like Break O’Day, we’re talking about about $90,000 in revenue, that’s a significant burden for that community,” Garcia said.
Break O’Day mayor, Sarah Schmerl says her ratepayers may have to foot the bill for the peace agreement.
“Service cuts are a definite possibility and there will have to be a rate increase as well but we’re trying to reduce that,” she said.
Green said there will be millions of dollars available for projects in regional areas as part of the forestry peace deal.
“We will work with those councils affected by the change, given this is a restructuring of the economy,” Green said.
Green added that Forestry Tasmania would still pay rates on more than a million hectares of forested land.
Garcia says councils are prepared to continue to fight for compensation
