Media Release

Peter Gutwein MP
Shadow Minister for Forestry

Saturday 4th February, 2012

Labor must ditch the Greens so that we can capitalize on China opportunity

In the face of the evidence of its own report, the Green-Labor Government cannot sustain the lie that the no markets exist for the Tasmanian timber industry.

The URS report commissioned and paid for by the Government clearly states that there is a growing market for both woodchips and other Tasmanian timber products.

The report states in relation to wood chips that Chinas’ “import trade has risen dramatically over the past three years” and that the outlook in both the short, medium and longer term is for demand for woodchip and pulp logs to increase with upward pressure occurring in relation to prices expected to emerge as China seeks to secure increasing volumes.

In relation to hardwood saw timber products the outlook is similarly positive with URS predicting that “demand for high value appearance products is likely to continue to grow nationally” with prices also expected to rise.

This report is an embarrassment for the Green-Labor Government as it proves that rather than shutting the industry down we should be seeking to capitalise on these market opportunities to grow the industry, secure investment and create jobs.

It is obvious that willing customers exist in international markets; however we need to be in a position to offer long-term supply, political stability and appropriate export facilities - none of what is being delivered by the flawed IGA and the state's unstable political environment.

Labor should ditch the Greens and accept our now long standing offer to work with us to grow this vital Tasmanian industry rather than shutting it down to keep the Greens happy so that they can remain in power.