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Forestry generates strong returns says Tasmanian report
15/06/2009
According to a report into government subsidies in Tasmania, the country’s forestry industry generates excellent returns on the subsidies it receives.
The study, which was commissioned by the Forest Industries Association and Forestry Tasmania, found that the forestry industry returns a huge $56 to the economy for every dollar it receives in government subsidies.
The study was carried out to silence critics who have been claiming the forestry industry is worth little to the country and drains government funding.
Forestry Tasmania claimed that tourism and agriculture both take more in the way of subsidies and return much less to the economy in exchange.
Tasmanian economist, Bruce Felmingham, who carried out the study, spent eight months researching state data to find the levels of subsidies being awarded to each of five industries. He looked at how much ‘bang for buck’ each industry gave the government, concluding that the forestry and timber processing industry was entirely worth supporting, generating plenty of cash for the country.
Fellingham also concluded that government subsidies can boost industries if used for the right reasons. "Subsidisation has had a positive economic effect in the past and will do so in the future if well targeted,” he added.
The study, which was commissioned by the Forest Industries Association and Forestry Tasmania, found that the forestry industry returns a huge $56 to the economy for every dollar it receives in government subsidies.
The study was carried out to silence critics who have been claiming the forestry industry is worth little to the country and drains government funding.
Forestry Tasmania claimed that tourism and agriculture both take more in the way of subsidies and return much less to the economy in exchange.
Tasmanian economist, Bruce Felmingham, who carried out the study, spent eight months researching state data to find the levels of subsidies being awarded to each of five industries. He looked at how much ‘bang for buck’ each industry gave the government, concluding that the forestry and timber processing industry was entirely worth supporting, generating plenty of cash for the country.
Fellingham also concluded that government subsidies can boost industries if used for the right reasons. "Subsidisation has had a positive economic effect in the past and will do so in the future if well targeted,” he added.
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