The federal government's rejection of the Softwood Working Group's bid to form one of nine 'regional forestry hubs' has been labelled disappointing by chairman Peter Crowe.
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Prime Minister Scott Morrison announced last month pilot hubs would be initially established in Tasmania, NSW, Western Australia and on the Victorian border with South Australia, with five others to be rolled out by 2020 in a $12.5 million project to boost the industry.
Mr Crowe said he couldn't fathom why Southern NSW had been overlooked.
"We're extremely dissatisfied," he said.
"SWG is the only group in Australia that could pick up the ball and run with it straight away; this area has an impeccable track record in infrastructure planning and plantation expansion.
"If there's an area that ought to be top of the tree in terms of designating these hubs it's ours - and that's not counting what's over the border in North East Victoria.
"We have a great industry, which is basically drought-proof in this part of the world, and even though we put up proposals acknowledged as outstanding, we still can't get funding."
A $20 million proposal for roads upgrades from SWG was unsuccessful in the NSW government's latest growing local economies funding round.
This week Greater Hume Council responded to Paul Rowe about logging PF Olsen will commence within months, indicating there would be an expected daily maximum of 70 B-Double movements from the Ferndale Plantation.
PF Olsen has advised council that logs will be transported within daylight hours, Monday to Friday.
Road works PF Olsen is funding will likely start this month, and council considers once they're completed Tunnel Road will be safe for B-Double use.
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The federal government has plans to add one billion trees to the national plantation industry within the next decade.
"We need the infrastructure, labour and the region selected to achieve that target," Mr Morrison said when announcing the hub sites in Tasmania.
"We will talk to other forest communities around Australia to identify more sites."