THE Greens have clawed back gains with the Gillard government to protect big tracts of Tasmanian native forests in an inter-government deal aimed at achieving peace on the island.
The 430,000 hectares of forests to get stronger protection from Canberra have been the scenes of some of Australia's most bitter and protracted logging disputes over decades.
The last-minute changes after protracted negotiations stung the forest industry, which is calling the deal a bitterly disappointing sham.
When the $276 million peace package was initialled a fortnight ago, Tasmanian Premier Lara Giddings left open the prospect of logging in these forests if there was no other option. The Greens withheld their backing from the deal.
Prime Minister Julia Gillard said yesterday that in finalising the agreement there had been a chance to provide "clear, immediate protection" for the 430,000 hectares while still meeting industry's need for wood supply. Under the changes, the federal government will strike a legislatively backed conservation agreement with the state, protecting these forests and, if necessary, compensating loggers to stay out of them.
Greens leader Bob Brown said he told Ms Gillard the Greens would not accept the initial package, which failed to deliver on earlier agreements in the long-running peace talks between industry and environment groups.
"I'm now looking forward to working with the federal government to get the World Heritage outcomes here," Senator Brown said.
Among forests to be immediately reserved are tall old-growth eucalypts fringing the existing Tasmanian Wilderness World Heritage Area, some of Australia's largest temperate rainforest in the Tarkine and the contentious Wielangta forest on the east coast.
Senator Brown faced the threat of being bankrupted out of the Senate in 2009 over legal bills for his failed fight to stop logging in Wielangta to protect threatened species. "Wielangta now seems to be moving to a national park," Senator Brown said.
The total 430,000 hectares is now to be formally assessed and legislated into reserves in a process likely to take at least 12 months.
These national parks and reserves, together with changes to wood supply agreements, will have to navigate a hostile conservative upper house in the State Parliament.
Ms Giddings said if they did not, then Tasmania would not get $100 million regional development assistance, or more than $35 million to look after the new protected areas.
But the Forest Industries Association of Tasmania was deeply angered by the last-minute changes, which also drop a legislated guarantee for wood supply to a key veneer mill in the state's south.
Association chief executive Terry Edwards said it was a cynical sellout and he could only hope Tasmania's Legislative Council would see the folly of pandering to the Greens.
The Coalition's forests spokesman, Richard Colbeck, said the deal capitulated to green groups by cutting in half Tasmania's $1.4 billion forest industry. Doubts remain over the position of the major timber player, Gunns Limited. Its decision to abandon native forest logging opened the door for the peace talks.
Frequently Asked Questions about this Article…
What is the Tasmanian forests deal and why should investors care?
The Tasmanian forests deal is an inter-government agreement led by the federal government to provide stronger protection for 430,000 hectares of native Tasmanian forest while trying to balance wood supply needs. For investors, it matters because the deal affects the timber supply chain, regional economies, and companies with exposure to native-forest logging or processing in Tasmania.
Which areas are included in the 430,000 hectares of protected forest?
The protections target tall old‑growth eucalypts fringing the Tasmanian Wilderness World Heritage Area, large temperate rainforest areas in the Tarkine, and the contentious Wielangta forest on the east coast, among other tracts identified for reservation.
How much money is involved in the peace package and regional support?
The package includes a $276 million 'peace package' initially agreed to help resolve disputes. The federal deal also ties to up to $100 million in regional development assistance and more than $35 million to manage new protected areas, contingent on the state accepting the terms.
Will loggers be compensated under the agreement and what does that mean for timber supply?
Yes — the federal government says it will strike a legislatively backed conservation agreement that can include compensating loggers to stay out of protected areas if necessary. That approach aims to protect forests while attempting to manage wood supply, but it may reduce available native timber for some mills.
How long will it take for these forests to be formally protected?
The article says the full 430,000 hectares will be formally assessed and legislated into reserves in a process likely to take at least 12 months, subject to state parliamentary approvals and potential obstacles in the Legislative Council.
What has been the industry reaction and how might this affect forestry investments?
The forest industry has reacted angrily, calling the last‑minute changes a 'bitterly disappointing sham' or 'cynical sellout.' The deal removes a legislated wood‑supply guarantee for a key veneer mill and, according to opposition voices, could severely reduce the size of Tasmania's $1.4 billion forest industry. Investors in timber businesses, processing mills or regional service providers should factor in reduced native‑forest logging and political uncertainty.
What is the significance of Gunns Limited in the negotiations?
Gunns Limited, a major timber player, had previously decided to abandon native‑forest logging — a move the article says opened the door for peace talks. The article notes there remain doubts about Gunns' position, so investors should watch any company statements for clarity on future operations in Tasmania.
What political and legislative risks should everyday investors monitor related to this deal?
Key risks include resistance in Tasmania's conservative upper house (Legislative Council) to creating new national parks and changing wood‑supply agreements, potential loss of tied regional funding if the state does not accept terms, and ongoing legal and political disputes between environment groups, the state government and industry. These factors can delay implementation and affect companies with exposure to Tasmanian forestry.
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