Victoria's fauna emblem,the Leadbeater's possum.Credit:Ken Irwin
A decades long debate between environmentalists and industry relying on Victoria’s native forests has been largely focused on the state’s critically endangered faunal emblem,the Leadbeater’s possum,with vast sections of forest blocked from timber harvesting.
Several industry sources said taxpayers would likely fork out up to $500 million in compensation for workers and companies,with millions expected to go towards Australian Paper’s Maryvale Mill — the Latrobe Valley’s single biggest employer.
The mill has a contract for native timber supply from the state's Central Highlands under a deal passed by the Victorian parliament in the 1990s.
But the decision will likely close many small timber mills,some of which have operated in Gippsland for more than a century.
The future of the sector has been subject to fierce debate within the Victorian government. The industry has been under increasing pressure in recent years,with supply of sustainable sawlogs dwindling for many of the state’s small timber mills.
The Maryvale Paper Mill.Credit:Bloomberg
The Andrews government delayed a decision on the industry's future before last November’s election,to avoid tensions within the Labor movement involving the powerful Construction,Forestry,Maritime,Mining and Energy Union.