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Publish Date : 07-Dec-2015

The Government has now moved to the next stage of the southern residues solution process a Request for Proposals, and the data room is open as of today.

The Hodgman Liberal Government is rebuilding Tasmanias forest industry to drive economic growth and create jobs our number one priority.

Finding a solution to the southern residues problem resulting from the Labor-Green shutdown of Triabunna is a key part of our Plan.

Thats why we commenced an Expression of Interest (EOI) process earlier this year to seek private sector involvement in the development of an effective residues solution in Southern Tasmania.

Today, I was pleased to advise a Parliamentary Committee scrutinising Forestry Tasmania that we have now moved to a Request for Proposals.

There was a strong level of interest from the private sector in the initial EOI process, with 19 submissions received and 15 participants proceeding to the next stage.

A consultation process was undertaken with each of the participants, which has:
Informed the next stage of the process; Identified the level of progress made by participants and their solutions; Clarified the types of information required by participants to finalise proposals; and Clarified the time frame required by participants to fully develop their solutions to a bankable business plan.

The Request for Proposals stage that has now commenced involves the Government seeking more detailed business cases on these proposals.

Of the 15 proposals that are part of the ongoing process, around half a dozen offer the potential for utilising residues in the near term, once the EOI process has been completed.

This includes short-term solutions such as alternatives to bulk woodchip exports from Hobart as well as longer-term solutions such as wood products processing, biomass and biochar.

Deloitte will continue to work with some proponents that have put forward longer-term solutions to also progress these concepts.

It is important to note that while the Government maintains an open mind as to any residues solution, we would like to see value-adding activity undertaken in Tasmania in the medium to longer term.

The Government has ruled out solutions that require Macquarie Wharf in Hobart for storage or export of bulk woodchips, which does leave the door open to the possibility of containerised woodchip exports.

Detailed proposals are due by 17 February 2016 and the Government is hopeful that we will be able to announce an outcome shortly thereafter.

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