Feds must rule out forestry bail-out

The federal government must rule out yet another bail-out as the state government scrambles for a way out of the Forestry Tasmania mess, Australian Greens Leader Christine Milne said today.

"The federal government must declare it will not use Australian taxpayer money to yet again prop up Forestry Tasmania," Senator Milne said.

"Tasmania has received more than $1 billion in funding for the forest industry since 1990 and the industry still can't stand on its own two feet.

"Senators Abetz and Colbeck joined with Prime Minister Abbott in rejecting departmental advice leading to Australia's humiliation at the World Heritage Committee, they must not prevail again in propping up Forestry Tasmania.

"Forestry Tasmania has overseen a failed business model and must be wound-up," said Senator Milne.

"The Tasmanian Government should stop running an export woodchip business and instead concentrate on value-adding our existing plantation estate.

"There is great potential to use plantation timber for laminated construction board, veneer and furniture making.

"Both governments should stop looking backwards to an industry that has failed the state and look towards the potential for our existing plantations and the conflict-free jobs they could provide."