Government rejects claim that waste log export operation is ‘rorting’ federal subsidy

By Georgie Burgess and Emilie Gramenz
ABC News, Australia
November 9, 2017
Category: Business & Politics
Region: International

The claim that the Government is misusing a federal transport subsidy is “absolute nonsense”, Resources Minister Guy Barnett has said. Majestic Timbers has government approval to use the generous Freight Equalisation Scheme (TFES) to export waste logs from Hobart’s Macquarie Wharf. Under a government-approved plan, the company buys 180,000 tonnes of residues a year and ships them in containers to Asia, collecting at least $3 million in scheme payments over 12 months. The ABC understands Sustainable Timber Tasmania (formerly Forestry Tasmania) receives at best $10 a tonne for the product, a price set by Treasury. Independent Denison MHR Andrew Wilkie described the operation as a “rort”. But Resources Minister Guy Barnett has defended the use of the scheme, firing back at Mr Wilkie on ABC Radio Hobart.

Read More