By Sue Neales, The Mercury
TASMANIA’S logging industry is in mayhem as timber giant Gunns Ltd slashes its long-term woodchip contracts with forest harvesters across the state. Most of Tasmania’s 170 forest contracting businesses have been told in the past few months — some with little warning — that their log purchase contracts issued by Gunns have been cut by at least 40 per cent. Other timber firms have had long-term contracts with both Gunns and Forestry Tasmania to cut and cart trees in the state’s native forests expire without being renewed. The sudden downturn in demand, after two years of peak activity, is crippling timber families and communities. Some forest workers have lost their jobs, with trucks and harvesting gear for sale at bargain basement prices, and several harvesting contractors have closed their businesses.
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Mr Jackman said the logging industry needs a drastic restructuring, with government assistance paid to help older contractors leave their businesses with some dignity and some super for their retirement. “What Gunns and Forestry Tasmania and the government have all lost sight of is the fact that the trees belong to the Tasmanian people,” Mr Jackman said. “If they aren’t able to get a profitable return from harvesting them, or can only do so by contractors subsidising their corporate profits, then the trees should be left standing up. “This industry shouldn’t be about cutting the trees at all costs.”
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