Logging firms agree to spare Tasmania's native forests

The deal ends 25 years of conflict between industry and environmentalists. Photo / APN

SYDNEY - A generation of conflict in Tasmania's forests between environmentalists and loggers is drawing to a close after a historic "peace deal" was announced.

The agreement - which will see logging end immediately in the most pristine eucalyptus forests, and gradually in all other old-growth native forests - follows five months of secret talks between green groups, unions and the forestry industry.

The deal, which would have seemed inconceivable only a few years ago, is based as much on economic realities as a desire to end decades of hostilities. With demand for environmentally friendly timber soaring in Tasmania's biggest market, Asia, the industry is in decline. Just two days ago a sawmill closed at Scottsdale, in the island's northeast, with the loss of 120 jobs.

Over a timeframe yet to be determined, forestry companies will switch to logging only plantation timber, meaning that the sometimes violent clashes of the past quarter-century - which saw protesters occupy ancient tall trees and lie down in front of bulldozers - could be over.

Analysts are also predicting that the deal in Tasmania, considered the birthplace of the global green movement, could lead to old-growth logging being phased out elsewhere in Australia.

The Age newspaper forecast that the Victorian Government would come under pressure to increase protection of native forests before next month's state election.

The industry's new stance was revealed by Greg L'Estrange, chief executive of Gunns, Australia's largest logging company, in a speech last month. Admitting that the vast majority of Australians sided with the environmentalists, he said Gunns planned to stop logging old-growth forests. "We see that the conflict has to end."

Tens of thousands of hectares of forests up to 400 years old have been clear-felled since the mid-1980s, with most of the timber reduced to woodchips for export.

The negotiations began after Tasmanians elected a Labor-Green coalition Government in April. The state is expected to seek federal assistance of up to A$1 billion ($1.31 billion) to compensate those forced to leave the industry.

Timeframes and other details will be hammered out at further talks - however, the industry warns that it could be 30 years before plantations can supply hardwood timber of sufficient quality and quantity.