coolsydney.net.au

Source: The Age (AAP)
August 7, 2011

Prime Minister Julia Gillard and Tasmanian Premier Lara Giddings have signed a $276 million forestry deal which the Labor leaders claim will protect the state's forests and support workers.

The deal reflects an in-principle agreement struck last month between environment groups and the forestry industry.

The sector has been ailing in recent years with mill closures, lower exports and timber company Gunns' exit from native forestry.

But Ms Gillard says the deal "will help the forest industry adapt to market changes while protecting the communities and families that rely on the sector to survive".

There'll be $85 million to support contractors and their families affected by the downturn and $43 million to protect new areas of high conservation value forests.

A further $120 million over 15 years will go towards diversifying the economies of impacted towns.

Some $7 million per annum will be used to manage new reserves.

"Significantly, the agreement guarantees protection for Tasmania's most iconic ancient forests," Ms Gillard said in a joint statement with Ms Giddings.

"Tasmania will immediately place 430,000 hectares of native forest into informal reserve, subject to verification, which the governments will protect under a conservation agreement."

Reserves will include areas such as forests in the Styx, Upper Florentine, Huon, Picton and Weld Valleys and the Great Western Tiers, Tarkine and Wielangta areas.

An independent verification group will be established to provide advice to the prime minister and premier on sustainable timber supply requirements and boundaries of the reserves.

"Once this process is complete the state will develop legislation to formalise reserves and guarantee annual sustainable timber supply from production areas in public forests," Ms Gillard and Ms Giddings said.

However, the Tasmanian government needs the support of the Greens to pass any legislation and the minor party has previously said it won't go along with the deal.

Today, the PM and premier urged all parties to recognise that the inter-governmental agreement was an opportunity to "move forward after more than 30 years of bitter conflict".