Forest deal pressure mounts on Tas MLCs

THE blowtorch is being applied to Tasmania's upper house members as they prepare to vote on the state's historic forest peace deal.

Major employer Ta Ann has flown in its group managing director from Malaysia, while federal environment minister Tony Burke has been in Hobart, both warning members of the legislative council (MLCs) the industry faces a bleak future without the agreement.

Environmental groups and the timber industry defied 30 years of animosity to reach an 11th-hour deal to protect 500,000 hectares of forest last month.

Legislation giving effect to the agreement has passed the lower house but faces a stern test in the 15-member legislative council when it is debated next week.

Thirteen of the members are independent and several have expressed concerns, but they have been left in no doubt about what voting down the deal could mean.

Timber processor Ta Ann group managing director KH Wong has confirmed his company, which employs 100 Tasmanians, would close its two mills and quit the state.

Mr Wong has also upped the stakes by saying the company would open a new $10 million plywood plant if the deal goes through.

He says the support of mainstream green groups The Wilderness Society, the Australian Conservation Foundation and Environment Tasmania is needed for markets to be satisfied the state's timber products are produced sustainably.

"To keep our mills going we must have the market," Mr Wong told reporters on Wednesday.

"If we lost the market we cannot move forward.

"I hope all these members understand the importance of this IGA (intergovernmental agreement) and they will support the industry."

An unlikely alliance of Ta Ann and the environmental groups - one that has already caused a split in the green movement - was due to meet MLCs on Wednesday afternoon.

Successful passage of the legislation will also unlock the remaining $100 million of federal funding promised to restructure the sector.

Minister Burke has conceded more money will be needed but is yet to say how much the government will commit.

He said MLCs would be taking a risk if they voted down the bill.

"There is no plan B," Mr Burke said.

"If the Tasmanian parliament decides to run the risk that this agreement is not required then that's a decision for the Tasmanian parliament to make."

He said a delay would mean the Commonwealth reviewing its involvement in the process.

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