Forest sale will 'axe jobs': MP | Gympie News | Local News in Gympie

SELLING off the State's Forestry plantations will only axe local jobs and increase building costs, says member for Gympie David Gibson.

Labor's 'fire sale' advertising now includes State-owned forests and Mr Gibson said it was quite clear Premier Bligh was willing to take an axe to regional jobs to fill 'the black hole that is Queensland Government's debt'.

Forestry Plantations Queensland (FPQ) has emerged as a prime candidate for privatisation as the government attempts to deal with its $14 billion debt.

FPQ manages almost 200,000 hectares of state-owned plantations and reported a net profit of $85.45 million in 2007-08.

"Why sell off government assets that generate income?" Mr Gibson asked.

A number of large industry operations in the Gympie region rely on the raw product from State-owned forests and if the plantations were to be sold, it would mean price hikes and job losses.

Hyne and Sons, Laminex and Carter Holt Harvey are main employers in the Gympie area and Mr Gibson said sawmills, trucking operations and all support services would be affected by the sale.