Tasmania’s finances are in a dire situation with rising debt, cuts to services and significant levels of existing risk across the forward estimates.
Taxpayers can’t afford the Tasmanian government actively entering new contractual arrangements that create more risk.
That’s why I co-signed a letter to the Premier yesterday asking him to suspend government negotiations with parties in the forestry industry for new, long-term wood supply contracts.
The current contracts expire in 2027. VIDEO HERE.
It’s unclear what recent changes to federal law (the EPBC Act) will have on native forest logging, the forest areas available, and the extent of logging that would be authorised to occur.
Therefore, the ongoing long-term supply of timber from our native forests is uncertain and subsequently, Tasmania’s ability to meet the terms of those contracts is in question.
That exposes us all to a financial liability for contracts promising supply after 1 July 2027.
Tasmanians could be liable to pay $300 million in compensation if they go ahead with signing contracts before the federal laws settle.