In a
few weeks Forestry Tasmania will celebrate its 21st birthday.
It’s likely to be a subdued
coming-of-age bash as the future looks murky. That it has lasted this long may
be the only reason for merriment for some.
Liabilities now exceed assets.
It can’t pay its way. If it was liquidated, the Tasmanian Government would be
faced with a shortfall it would meet by taking over the unfunded superannuation
liability.
Adjusting for the way we now
value trees, $566 million in net assets were transferred in 1994 to establish
Forestry Tasmania. Since then Forestry Tasmania has received $340 million in
cash grants from governments and has spent $400 million on new assets, roads
and plantations.
Roughly $140 million of grants
have been for operating, funds to reimburse community service obligations, and
funding to cover recent trading deficits.
The balance of $200 million of grants has been to establish plantations to build an asset base to provide future revenue.
About $20 million is yet to be
spent as intended, the cash went to pay other expenses.
Despite all the grants, net
assets are now zero.
