VicForests will not award 8 of the 16 logging contracts from the latest tender process because of market conditions.
A Central Gippsland contractor says at least 7 forest contractors will lose their businesses and about 40 forest workers and drivers will lose their jobs.
It will also be difficult to sell millions of dollars of redundant machinery because of the decline in the industry.
VicForests said the decision was made to provide some contractors greater certainty and will give the unsuccessful tenderers “the opportunity to seek work elsewhere”. !
It appears that the large Heyfield mill that was bought by Gunns is selling up to move into plantation timber. That’s thrown a spanner in the works for the logging industry and VicForests.