The Tasmanian Liberals have defended their decision to approve a $13 million forestry grant in their final days of government and announce it on the state election campaign trail.
The Liberal Government signed a deal last week providing the Victorian timber company Hermal Group with $13 million, plus a $30 million loan, to build its new hardwood mill in Burnie.
The mill will process plantation timber supplied by Forico and turn it into cross-laminated panels, commonly used in the construction industry.
Hermal expects the mill to be operational by 2020, creating 160 jobs in construction and more than 200 jobs in operation.
Premier Will Hodgman said the Government was keen to secure the economic benefits of the $190 million project before entering caretaker mode last Sunday.
"People were wondering why we weren't calling an election sooner," he said.
"We still had some term to serve and some things to do and this was one of the last decisions made by the Government."
Labor's finance spokesman Scott Bacon said Labor fully supported the project, but he believed it should have been consulted because the deal was signed so close to an election being called.
"Caretaker mode is there to keep the politics out of announcements like this," he said.
"It does appear that the Liberal party seems to be playing politics with it, to decide on it when they're still in government and then announce it once the campaign has started.
"It's all a little bit too convenient."
Earlier this month, the Liberals advised Labor before reappointing Treasury Secretary Tony Ferrall to a five-year contract.
On January 19, Treasurer Peter Gutwein said that was appropriate, "given the timing of this appointment".
On Tuesday, Mr Gutwein said there was no need to extend Labor the same courtesy in the case of the Burnie mill.
"I made the decision that I'd give them a heads up on [Mr Ferrall], in respect of other decisions of government they are decisions of government," he said.
"The Government was the Government up until Sunday, and we were making decisions and getting on with the job, which is exactly what Tasmanians would expect us to do."
The Greens' Braddon candidate Scott Jordan also objected to the funding being announced during the campaign.
But he said the plantation-only mill was a big step forward for the industry.
"I think it's the most exciting thing we've seen in the forestry space for quite some while," Mr Jordan said.
"This mill has the opportunity to absorb a whole lot of those jobs that are now exiting out of native forest logging."
