Forestry Tasmania restructure tipped to deliver $30m improvement to state-owned company’s budget

In August 8, 2017

(AU) – A RESTRUCTURE of Tasmania’s state-owned forestry company will deliver a $30 million improvement to the company’s bottom line, but it is unclear when it is expected to return to profit.

Delivering an update today, Resources Minister Guy Barnett also said the sale of the company’s pulpwood plantations was close to being finalised.

At the beginning of the month, Forestry Tasmania became known as Sustainable Timber Tasmania under a State Government restructure.

Mr Barnett said the restructure was designed to put the entity on a sustainable footing and make it free of public subsidies.

He said the restructure of Forestry Tasmania, including the company’s increased commercial focus, was on track to deliver a $30 million improvement to its bottom line over the next four years.

“The projected improvements in STT’s bottom line are a result of an organisational restructure, achieving better returns for forest products, and savings on office costs, particularly the move of the Hobart office,” he said.

But Mr Barnett said there was more work to be done to “unlock” more forests for logging.

The Government’s bid to open an extra 365,000 hectares of contested forests to logging was rejected by the Legislative Council 7-5 last month.

Mr Barnett said the Government would take the plan to the people at the next election.

Mr Barnett was unable to say when Sustainable Timber Tasmania was expected to return to profit.

“Those figures will be made available later this year,” he said.

Last year, Forestry Tasmania’s annual report showed a loss of $67 million in 2015-16.

Sustainable Timber Tasmania had selected a preferred bidder for its plantation assets, Mr Barnett said.

“Negotiations are in the final stages,” he said.


Forestry Tasmania restructure tipped to deliver $30m improvement to state-owned company’s budget by LORETTA LOHBERGER, Mercury.  Available from <http://www.themercury.com.au/news/politics/forestry-tasmania-restructure-tipped-to-deliver-30m-improvement-to-stateowned-companys-budget/news-story/c307b7f5449dfb2ce36ecbf2fab312ac> [July 28, 2017 2:22pm]

ForestryConnect is a digital media platform for everything forestry. Sign up to our newsletter delivered fortnightly to your inbox.