Forestry Tasmania’s operating profit had been cut from A$25 million to just over $500,000 in the past four years, the company revealed at Government Business Enterprise hearings last week. Forestry chief executive Bob Gordon blamed the loss on tough trading conditions with a volatile market, a substantial drop in wood sales, and rising contractor costs, according to an ABC report.

He predicted the result would turn around over the next five years, the report said. “As the extra profit from the two major downstream processing Southwood projects at Huon and Smithton come on stream and as the 25% price increase on regrowth logs and the 85% increase in plantation logs come on stream as the pulp mill gets built.” Greens Leader Peg Putt, however, claims the wood supply agreement is not going to prop up Forestry Tasmania in the long-term. “They may have a minor improvement for a few years whilst the last of our precious native forests get trashed,” she said. “But in the long run it’s not going to do them good it’s going to do Gunns a lot more good than Forestry Tasmania and the public purse.”