MEDIA RELEASE

1st April 2010

Protestors disrupt struggling workers. Tasmanian cost of living impacted.

Tasmanian Forest Contractors Association CEO Ed Vincent said the cost to the community of illegal forest protests, through relocation costs and lost production, had an adverse impact on the Tasmanian cost of living.  “All Tasmanians are paying for the costs associated with these illegal actions.”

“The sense of frustration at these sorts of interference in contractors’ lawful business, especially in the current economic climate, is very real. The irony of two illegal protests since the close of polls versus none during the summer leading up to the election, is not lost on our members, or the wider electorate.”

“During the election campaign, the Tasmanian Greens recognised the plight of the contracting sector in their policy document and were successful in influencing to prevent illegal protests in the lead up to the poll. Contractors, struggling with the timber industry downturn call on Greens leader Nick McKim to encourage radical green groups to again stop illegal protests.”
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 The Tasmanian Forest Contracting Association, (TFCA) which represents approximately 80% of Tasmania’s forest contractors, has today expressed concerns about a proposed acquisition by Gunns Ltd of ITC Timber calling into question the impact such a merger will have on competition in the Tasmanian Forestry industry. 

“A delay in the ACCC’s review of this latest proposal, whilst they seek further information from Gunns, makes one start to wonder whether this merger is the right thing for the industry.” TFCA’s CEO Mr Ferdie Kroon said today.

“We urge the ACCC to be thorough in their evaluation of the issue, as any major change in the industry must be in the best interest, and to the benefit of the entire supply chain and the communities that depend on the industry for their livelihoods,” Mr Kroon said.

“The TFCA are looking at this proposed merger objectively, and while the ACCC review is still underway, we feel a duty to explore some of the questions our contractors have been raising, such as, will the 2000 or so private farm foresters in Tasmania still receive a competitive price for their wood?”

“Will Tasmania’s sawmillers, big and small, be able to fairly compete for logs and timber or will country sawmills be choked out of business? And what will be the impact on the hard working family businesses that rely on harvesting, carting and moving this wood to sawmills and wood fibre processors?”

“These are questions coming from the little guys who plainly fear a monopoly being created in their industry,” said Mr Kroon.

“Just like many Tasmanians, the TFCA has concerns regarding big corporations decreasing competition in primary industries in the state generally. We need only look at the recent high-profile issues in the dairy industry where big corporates are tragically driving down prices paid to suppliers to unsustainable levels.”

“All of Tasmanian industries need to be aware of the risk imposed on the ability for little guys to compete openly and fairly under big corporate dominance.”

“ We need to understand fully how the proposed Gunns acquisition might impact the entire supply chain including contractors, private growers, farm foresters sawmillers, fibre exporters, and also other forestry companies who currently provide some healthy competitive tension,” said Mr Kroon.

“The ACCC is currently investigating the possibility of the Gunns acquisition as imposing decreased competition in the Tasmanian forestry industry, and it is expected to release their findings some time soon.”

“It’s vital that all questions are now raised so as to bring to light any areas of concerns before it is too late,” said Mr Kroon.

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The Tasmanian Forest Contracting Association, representatives of approximately 80% of forest contractors, welcomes the recent announcements by the State Government to review the Forestry Fair Contracts Code Advisory Note and examine relevant Victorian legislation.

“TFCA has been arguing for some time that the mix of contract conditions as well as the Global Financial Crisis and the changing forest resource have all contributed to a destabilised forest contracting sector”, said Mr Ferdie Kroon, TFCA’s CEO.

“The State Government has not only heard our calls, but it has readily responded to the submissions from individual contractors and even finance representatives”, said Mr Kroon.

The bi-partisan support for these reviews is also encouraging and this clearly demonstrates the continuing importance of the forest industry to the Tasmanian economy.

“The declining equity status and credit issues coupled to the ever present requirement for structural adjustment are all matters which could be potentially addressed by the outcomes of these review processes”, said Mr Kroon.

Contractors, their communities and the businesses that rely on them, also hope that the outcomes of these reviews will go a long way towards creating a better investment environment for contractors and a stronger sector for the industry to rely on. 

“Such an environment may also lead to new and exciting employment opportunities for many young Tasmanians, which in turn starts to address the sector’s ageing workforce problem and encourages more Tasmanians to remain and work in this State”, said Mr Kroon.

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Contact:          Ferdie Kroon, Chief Executive Officer, 0417 520 591

19 August 2009