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Auditor-General report criticises Victoria’s timber shutdown, citing job losses, insecure work and failed transition planning

Auditor-General report criticises Victoria’s native timber shutdown, highlighting failed transition, job insecurity, and ongoing regional economic harm under the Allan government’s policy.

By news@gippsland - 10th April 2026 - Back to News

Victoria’s timber towns continue to pay the price for Labor’s reckless closure of the native timber industry, with the Auditor General’s report exposing the failures of the Allan Government’s botched transition plan. The Nationals’ Melina Bath said the report confirmed Labor’s transition failed to deliver secure jobs or sustainable livelihoods, validating the firsthand experience of workers and regional communities.

Melina Bath says Auditor-General report shows Labor’s timber shutdown failed, with insecure jobs, poor outcomes and harmed regional communities

Melina Bath says Auditor-General report shows Labor’s timber shutdown failed, with insecure jobs, poor outcomes and harmed regional communities

Timber industry impact

Ms Bath said, "The Auditor General found that despite budgeting $1.5 billion to shut the industry, the Allan Government cannot demonstrate whether displaced timber workers are better off. Job quality has declined and employment is less secure, with Labor failing to track income or job security outcomes."

"These are not the markers of a successful industry transition. Instead of transitioning and supporting displaced workers, Labor’s plan has driven economic instability that continues to harm regional communities," she said.

The report found the majority of timber workers were employed full time, before Labor’s forced shutdown. Post transition, most workers were pushed into casual or insecure jobs, with little prospect of stable, long term employment.

Labor governance criticised

Ms Bath said the findings revealed serious failures in Labor’s governance and oversight, including its inability to verify retraining completion or employment outcomes. "Accountability was inconsistent, worsened by Labor’s reliance on highly paid consultants. The Allan Government has no credible plan beyond 2026 to manage the ongoing impacts on workers and affected communities."

"The report confirms Labor shut down a sustainable industry first and considered the consequences second. Our regional communities deserved fairness, consultation, secure jobs and accountability, but instead they received disingenuous government spin. The Allan Government must urgently review remaining transition funding to ensure it directly supports workers, families and communities and not further bureaucracy," she said.

Pictures from Melina Bath MP Facebook page.


Source: http://gippsland.com/

Published by: news@gippsland.com



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