PM: I'm here in Tasmania today and I'm joined as you can see by the Premier and the Deputy Premier.
I came to Tasmania two weeks ago to work with the Premier and Deputy Premier on the future of forestry in Tasmania and on job security for workers in this state. We worked on a heads of agreement and signed it that weekend. That heads of agreement committed us to entering a full and detailed agreement in 14 days. Here we are 14 days later and Premier and I have just signed that agreement.
What this agreement responds to is changing market conditions, particularly the decision of Gunns to exit the native forestry industry. What that meant was a wave of insecurity for people who work in the industry and also contractors in the industry. It also meant that Tasmania needed to face up to the challenge of further diversifying its economic base and at the same time there was a major opportunity here to secure new forest reserves and better protection for some special areas of the forests in Tasmania.
So the agreement has been building on the work of stakeholders from all sides of this debate, from industry and from the environmental movement. People who have spent a long time arguing but came together in the face of new market conditions to see if there was a path forward. Well today this agreement delivers that path forward. It commits a total of $276 million which includes $15 million from the state government. That money will be used in the following ways. $85 million will support contractors and their families affected by the downturn in the industry and will also provide assistance to employees. $43 million will facilitate protection of new areas of high conservation value forests. There will be $120 million devoted over 15 years including an initial payment of $20 million to identify and fund the appropriate regional development projects. And there will be $7 million ongoing to manage new reserves. The industry support package I referred to does include up to $25 million for the immediate assistance of workers who do lose their jobs as a result of changing industry conditions.
Now I believe, with this agreement delivered, Tasmania can focus on its economic future, particularly on diversifying its economic base. We have worked with the Tasmanian Government to deliver things like the National Broadband Network and I'll continue to work with Premier Giddings to deliver things like new investments in skills. This stream of regional development money will enable further economic development here, so Tasmania can seize a future with secure jobs, with economic diversification, with high-skill, high-wage jobs in the future.
I'll turn to the Premier now for some comments.
PREMIER GIDDINGS: Thank you very much Prime Minister and thank you once again for your role in helping to negotiate and bring to some finalisation what has been a long, drawn-out but very historic process that's been occurring here in Tasmania for the last 14 months or so, where we've seen a process with industry and environmental groups sit around a table and go through some very tough negotiations over that long period to try to get to a point where we could find the right balance between protecting a forest industry here in Tasmania, protecting jobs within that forest industry here in Tasmania but also finding a new way forward for the future of our communities across regional and rural Tasmania as well, in terms of new jobs that we'll be able to create through the regional development funding that has been provided by the Commonwealth here today.
I want to just also make the point that this is probably one of the first times, if ever, that we've had a process occur where environmental groups have stuck with that process to the very end day. In the past what we've found is where we have engaged environmental groups that they have walked away from the process prior to that process being completed. We believe that the environmental NGOs will stand by this IGA as will industry as well. Both of those groups are absolutely critical to ensuring that this IGA does in fact have a life well beyond today.
In fact there is a durability clause within this intergovernmental agreement as well which ensures that on a 12 monthly basis all the parties get back together again and reassess where we are at, what has been achieved, what progress has occurred and whether or not there is a need to address any of those elements of the terms of agreement.
So I believe that this is a good day in terms of those workers who have faces so much uncertainty for such a long period of time now. Those workers associated with the Gunns productions that have occurred in the native forest industry, that those workers will be able to get some certainty and some assistance today. And not just those who are directly affected by Gunns withdrawing but also those in areas like silviculture for instance that have been indirectly affected by this decision by Gunns too.
First and foremost in our minds has been the impact on forest workers in Tasmania. First and foremost in our minds has been what is the future in Tasmania for native forestry, as well, how do we ensure that we do maintain certainty, how do we ensure that we also allow for a process of transition when there is an obvious change that is occurring, in markets, expectations about what timber they are willing to have within their stores and the like.
So we believe now we have a good strong framework to be able to move forward and give that certainty while also protecting some of those iconic areas that have been a topic of division in Tasmania for far too long.
So once again I thank the Commonwealth for their assistance and support and the breadth of this agreement that touches so many Tasmanians today, everything from those workers directly affected through to very important mental health program through Rural Alive and Well which is there out on the ground everyday providing support to those who have been finding it so tough over these few past months and will continue to be there as we continue to transition through this difficult period.
But we're open now for questions.
JOURNALIST: What changes if any have occurred between the (inaudible) and this agreement and in particular are there more funds tied to passage of legislation through the (inaudible)?
PM: Because we've have the benefit of some advice over the last 14 days including advice from Jonathan West who is going to be guiding and leading the verification process and bringing his expertise to bear. What we've been able to do in this agreement is provide some clear immediate protection for 430,000 hectares of forest while still meeting industry's need for wood supply for the contracts that are there at the moment and which have been acknowledged by all sides to this debate as needing wood supply.
On the question of contingency funds, yes there are some elements of the funding that are contingent on the Tasmanian Parliament post the verification process then dealing with the appropriate legislation to provide the protections recommended. But of course we do start all of this with a degree of confidence. This has been the subject of a lot of discussion and debate between parties in Tasmania that have historically not seen eye to eye, indeed they've seen the world very, very differently and there have often been long and bitter exchanges. They've come together and based on that work Government is delivering what we need to do to bring that work to life so we do approach this with a great degree of confidence.
JOURNALIST: Do you think this will stop the protests in the forests?
PM: Well we have certainly spoken to the environmental organisations and I'll turn to the Premier for comment too, but we have certainly spoken at length to the environmental organisations and they have worked around a table through the statement of principles process with industry to get a final settlement and to get peace.
Now of course we live in a wonderfully vibrant democracy and people have got the ability to make their views known, but for the organisations that have sat around the table, part of the commitment here is that they explain to their membership and more broadly that this is obtaining the outcomes that they have long sought, that is, it is better protecting a large section of forest including very important areas that have been the subject long campaigning like the Styx and the Tarkine and the Huon. So in those circumstances the environmental organisations have a responsibility on their shoulders to explain to their membership and beyond that this is the arrangement that they fought for and look to.
At the same time we've worked hard with industry, both being Labor leaders, we don't want to see working people lose their jobs and feel like they've got no prospects for the future and contractors, many of whom are not high income earners and have done it pretty tough, lose their businesses and feel like they've got no prospects for the future. That's why in this agreement we've taken so much care to make sure that we are supporting people during this journey of transition and whilst we'll continue to take so much care to support this state in its journey of transition to a broader economic future.
JOURNALIST: Have the Greens concerns been addressed in this final agreement and do you expect them to be satisfied with what you've signed off on here today?
PM: I think you'll have to ask them. Clearly, and I'll turn to the Premier for a comment here, clearly within the Tasmanian Government there's been discussions between the Premier and the Greens political party.
PREMIER GIDDINGS: The Prime Minister quite rightly says of course, that will be up to Nick McKim as the Greens leader to make their position known publicly in relation to this, but I can assure that we've had ongoing discussions with the Greens party around this IGA in the attempt to bring them with us and my hope is we will have an agreement that the Greens party will be able to support through the Parliament.
But we are still just the politicians in all of this. This is an important day but the work does not stop here. The work of the signatories does not stop here. The environmental groups and the industry groups will be absolutely fundamental to keep the spirit of this agreement alive and functioning, so in all respects it will be down to industry that helps us get this legislation through the Legislative Council.
It will be up the environmental groups, the leaders that were at the table, to try to help bring other parts of their constituency with them on what has been a very difficult but historic journey that we are achieving today. So as the Prime Minister said, nobody controls people in our democracy, that is the beauty of our democracy. But we certainly have the ability to stand up and articulate a point to try to bring others in the community with us. So I would hope to see the Wilderness Society, Environment Tasmania, The Australian Conservation Foundation and others standing up for this agreement, talking about the positives in it, talking about the transition that's occurring and trying to discourage others from continuing their attacks on important industries here in Tasmania, both in the saw logger industry but also in the billet industry as well. It is important that our existing forest industry is allowed to operate in an environment of support rather than continual attack and that is what the spirit of the statement of principles is about, that is where the leadership is now required from both industry and the ENGOs.
JOURNALIST: Is there money for Gunns in this agreement?
PREMIER GIDDINGS: This issue of Gunns continues on as it has at this point. I hope in this next week that I might be able to make some further announcements around processes that we'll be engaging with Gunns in. But the issues as I've said continually have been quite complex around the company and we continue to try to work through those.
JOURNALIST: Prime Minister do you mind answering that question too because I think Bob Brown has said that he's received some assurance that there won't be funding for Gunns under this package but one would anticipate that they'd have the right to some compensation?
PM: I think we have to be fairly careful in comments here so I'll just echo the comments the Premier's made. Obviously there are some legal issues of concern here that the State Government will work its way through.
JOURNALIST: Premier do we know any more about Triabunna and its future?
PREMIER GIDDINGS: Of course what we have is very strong expectation that in fulfilling the statement of principles that we will see Triabunna reopen. That is what we understand was a condition that was part of the sale of the Triabunna wood chip mill. We of course don't control that mill, it is in private hands and it's up to the owners to open the gates but it would certainly be our strong wish that those gates are opened and that that mill does operate within this intergovernmental agreement.
JOURNALIST: Has anything happened in the last two weeks to give you confidence that it's going to reopen?
PREMIER GIDDINGS: Following the heads of agreement there's obviously been a lot of discussion from various aspects across the environmental movement and industry as to what the heads of agreement meant. Through those discussions there's been further negotiation and you will see some difference in some of the clauses that has tried to work through some of those issues that have been raised.
I am confident that this IGA is the right way to go, that is within the spirit of the statement of principles, it catches the right balances that we need to achieve and in my view those gates at Triabunna ought to open on Monday morning.
JOURNALIST: Premier you mentioned yesterday that not all signatories had signed on yet, can you please just outline what's occurred in the past 24 hours to reach this point today and whether or not they are all onboard?
PREMIER GIDDINGS: My understanding is that there's been a number of conversations with the signatories to ensure that they are comfortable with the progress that has been made and again I can't speak on their behalf but I would expect them to come out in support of the IGA.
JOURNALIST: Can you just clarify how much of the industry assistance money as opposed to the regional development money is upfront for industry right now?
PREMIER GIDDINGS: Yes I can. Basically we have a package of $85 million which is upfront, there's about $45 million of that which will go to our silviculture, haulers, contractors and others. There's also up to $25 million which will be made available for the training and education aspects of helping these workers find new work outside of the forest industry as well as the $15 million of the state government which will be going to forest works which will be there to administer transition support payments for workers and contractor employees and of course there's also the $1 million that we've referred to for Rural Alive and Well.
JOURNALIST: So none of that money is (inaudible).
PREMIER GIDDINGS: No it is absolutely imperative that those workers who now have been out of work for some months and are in absolute distress get their support as soon as possible to help them move out of the forest industry and to find new opportunities in their local areas, that's what we want. We do not want to see our rural communities wither and die through this transition process, that's why the Commonwealth are immediately giving us $20 million to begin our regional assistance work and also giving us access to a further $100 million over the next 15 years which is in addition to the opportunities that we will have that every other state has available to it through the Regional Development Fund operated by Simon Crean.
JOURNALIST: What aspects of this will have to go through Parliament-
PM: Can I just perhaps add one comment there. I know that there have been some participants in this debate who have said that the Commonwealth should not convey any money until the verification process has been gone through and then legislation has been passed by the Tasmanian Parliament. I am not of that view. As a Labor leader and a Labor Government we were not going to leave working people in distress for many months while other processes were engaged in. So that assistance has to be upfront, it has to be made available now and it will be.
JOURNALIST: And can I just ask, you know we've had these agreements in the past, how confident are both of you as leaders that this is the agreement to end all agreements if you like?
PREMIER GIDDINGS: I don't know that you ever have an agreement that ends all agreements because my hope is that this one lasts the lifetime of the Prime Minister and myself and-
PM: And we're intending to live long lives aren't we?
PREMIER GIDDINGS: Exactly. But this is a very important agreement and as I've said what makes this agreement stand out from agreements of the past is first, it's actually come from industry and the environmental groups themselves, it's not being imposed by government and it's also been a process which has kept those groups together right to the very end, and I'd also make the point of course to the end of this chapter. There are many more chapters to come that rely on those groups staying together for many years. Now the personalities may change around the table but the industry and ENGOs as organisations are very much an integral part of ensuring that this agreement does have longevity.
PM: And can I just say from the Federal Government perspective, over many years now there's been engagement between the Federal Government and Tasmania on forestry issues. A lot of that engagement has been done on the basis that we've decided in Canberra, someone's decided in Canberra that we're going to come and tell you something about Tasmania. I've taken a very different approach and the statement of principles process has enabled us to take a very different approach. So this hasn't been like some past engagements from Canberra, this hasn't been a process of people sitting in Canberra and saying what do you think we should do about Tasmania? This has been a process where people have come in Tasmania, worked together and then we have engaged and joined that process and for the future, the $120 million of regional development money, that's about Tasmania, that's about you. It's about a process that will work from the ground up so people in this state get to design their economic future.
JOURNALIST: There have been a lot of groups that haven't been a part of this process (inaudible). Are you worried about their reaction to the deal?
PREMIER GIDDINGS: We obviously have a lot of communication that we need to build around this agreement and through this agreement we'll have the ability to do that and it's not just other groups that are involved in industry or involved in the environment movement, but also the wider Tasmanian community which has a stake in its own future and the real keys to this agreement in my mind are that it does secure jobs, it finds a way forward for new jobs off the back of important infrastructure like the roll out of the National Broadband Network and how that will help link rural communities to other parts of the world let alone other parts of Australia and what jobs can come off that back of those sorts of innovative industries that can build off the back of the NBN, so it's about jobs, it's about community and its about Tasmania's future. And to ensure that the community understand and come with us, we will have to spend quite some time communicating with them and bringing them on this journey.
PM: Now I'm very conscious I've got a speech to give so we'll take a last question and then we might have to move.
JOURNALIST: And the upper house, how - sorry Prime Minister. The upper house, how do we get them on board and what needs to go through both houses of Parliament?
PREMIER GIDDINGS: Well there is in the first instance the 155,000 cubic metres of sawlog, there is a requirement to have a regulation change from the 300,000 that's currently in legislation, so that will be subject to a disallowance motion in both the House of Assembly and the Legislative Council. The industry will be very important in terms of helping to lobby the Legislative Council to get that through. There may be a need to legislate for the 265,000 peeler billets that are available to Ta Ann at this point in time, but that needs to go through the independent verification process before we know whether legislation will be required, but the contracts are secured under this agreement.
There's also the 12,500 cubic metres of specialty timber which is protected under this agreement which is also subject to the independent verification process. So in terms of other roles of the Legislative Council around the industry side, we can't answer that completely yet. Around the reserves, absolutely, whatever comes out of the independent verification process will need to go through the Legislative Council for that reserve to be made under law. So again the role of industry will be absolutely critical to helping to get that reserve agenda through the Parliament.
JOURNALIST: By failing to tie industry assistance to (inaudible) you require aren't you leaving yourself wide open for this deal to be shot down in Legislative Council?
PREMIER GIDDINGS: If we don't get that reserve agenda through we will not get the $7 million which has now been indexed by the Commonwealth Government to help look after these areas and we will also not get the remaining $100 million of regional development assistance which is a significant amount of money for the Tasmanian community.
We also of course, then have a very strained relationship potentially with the Commonwealth that we need to also be thinking about in terms of our future in our relationship with the Commonwealth who have really come to the party here to try to help us as a community, heal some of those divisions that have been so deep for so many decades. So I believe that it's not just about the money here, it's also about what we're trying to achieve for Tasmania and where Tasmania is going. Now what people consistently say to me is what's your vision? Where do you see the future of Tasmania? Well where we see the future of Tasmania is in a diverse economy, an economy that builds on our agricultural strengths, our aquacultural strengths, our innovation behind the NBN and what the NBN will bring to the Tasmanian economy.
What we can do in down streaming other primary source material that we have in the mining industry for instance in this state as well. All of these elements, tourism of course is important in Tasmania, but tourism will never been the one and only industry and God forbid that ever happens because it is such a volatile industry as we're experiencing right at this very moment. We need a diversified economy, we need one that also has a strong forest industry in it, a forest industry that has certainty around native forests and a forest industry that has certainty around the future of plantation forestry as well and that's what this agreement delivers.
JOURNALIST: Prime Minister what did you make of the state of the Labor party here in Tasmania at the moment? We saw all of the protests and fighting yesterday?
PM: I think probably the best thing is for me to go and address the Labor Party here and have a look.
Thank you very much.