There are fears the Queensland and Victorian flooding disasters could sink Tasmania’s forests peace deal.
It is estimated $1 billion is needed to restructure the industry but there are worries the money might be swallowed up.
The Liberals’ forestry spokesman, Peter Gutwein, says the funding is now uncertain with the Federal Government stretching to help flood victims.
“Without money the statement of principles is dead in the water,” he said.
Barry Chipman from Timber Communities Australia says the Government may have to choose between Tasmanian timber workers and flood-affected families.
“It’s a rock and a hard place.”
Treasurer Lara Giddings says Mr Gutwein’s fears are premature but she admits the State and Federal budgets are tight.
“It is difficult and challenging times,” she said.
A spokeswoman for the Federal Environment Minister Tony Burke declined to comment on concerns about the assistance package.
