Logging subsidies are costing Tasmania

A new report by Dr Graeme Wells of Wells Economic Analysis, about subsidies received by the Tasmanian forest industry, shows that over the past eleven years the industry has received more than $630 million in direct and indirect subsidies. These subsidies cost Tasmania the equivalent of 856 nurses for eleven years, or more than 40% of a brand new Royal Hobart Hospital.

Tall eucalypts line the ridges in the upper reaches of the Styx Valley, overlooked by snow-capped Mt Mueller.

Dr Wells found that despite this taxpayer-funded financial support there has been little economic benefit to Tasmania. There have been steady job losses in the industry over the past eleven years, making a mockery of the assertion that government financial support of the industry is designed to protect jobs.

If this $630 million had instead been allocated to other areas in the state, rather than the logging industry, it could have dramatically improved the health system, or have provided increased employment in the tourism sector.

For $630 million, Tasmania could have had any one of the following:

•    over fourteen years of funding for the Tasmanian Ambulance Service
•    over thirteen years of funding for the Tasmanian Parks & Wildlife service
•    more than forty years of current budget expenditure by the Tasmanian Government on tourism marketing
•    1364 Park Rangers for eleven years
•    386 top-level specialist doctors at current levels for eleven years

Government subsidies to the logging industry have failed to stop jobs being lost in the industry, and have failed to protect the environment – meaning that taxpayers have lost out. With your support, we need to call on our governments to take a new approach which will create jobs and sustainability for all Tasmanians.

Read more here:

Wells Economic Analysis report: Support for Tasmanian Forestry 1997-98 to 2007-08 (PDF - 143KB)
Forest subsidies comparison: Environment Tasmania and The Wilderness Society (PDF - 122KB)

Take action:

Contact Tasmanian Premier David Bartlett
Phone: (03) 6233 2530
david.bartlett@parliament.tas.gov.au

Contact Prime Minister Kevin Rudd
Phone: (02) 6277 7700
Online contact form