Federal Government fails to hand over promised funding to Tasmania


Tasmanian Premier Lara Giddings slammed the Federal Government saying that they have yet to hand over the promised $100 million in funding from the state’s forest peace deal.

Image credit: SXC user Krappweis
Image credit: SXC user Krappweis

According to an article featured on ABC News, the Premier partly blames the Coalition saying that they are holding up crucial funds for much needed job creating projects.

The issue was raised in Parliament, with Opposition Leader Will Hodgman pointing out the state’s high unemployment rate. Trend terms place the jobless rate at 8.5% and 200 full-time jobs are said to have been lost in the past month.

“I’ve spoken twice now to the Prime Minister about this issue,” Ms. Giddings said.

“All we need is his ink on the paper for the money to flow…so I find it so hypocritical from the Liberals.”


The promise made by the Federal Government needs to be kept so that interested companies that want to invest in Tasmania can start the process of establishing business without delay or concern.

The head of a company interested in manufacturing timber products in Tasmania has voiced concern regarding the pending issue.

Oakdale Industries also wanted to set up a manufacturing business and was promised $4 million. Not knowing where they stand, they too have expressed concerns.

John Paton, CEO of Oakdale Industries, told ABC Local Radio that their plan to employ 46 Tasmanian workers will have to be on hold for the time being.

“We’ve actually, at this stage, got a memorandum of understanding with Forestry Tasmania,” he said.

“We’re working through that process. We’re trying to source factories to operate the business from.

“We need to actually purchase equipment, we can’t actually begin any of that process, and we can’t actually begin to employ Tasmanians.”

The promised funding under the forestry peace deal is being held up by the Federal Government and many affected parties are eager to see this situation unfold positively as soon as possible.