Tas forest peace deal stays alive

TASMANIA'S forest peace deal remains alive after the state's upper house finally passed legislation enabling the creation of reserves.

Three years of negotiations between environmentalists and the timber industry will be actioned following the Legislative Council debate on whether the agreement was working.

Under the deal, 500,000 hectares of forest will be protected in return for the state and federal governments funding the struggling industry's restructure.

Around $97 million of government money will be unlocked by the decision.

Crucially, the agreement has passed through the upper house before the September 7 federal election which could deliver a coalition government opposed to it.

The Legislative Council is not scheduled to sit again until September 17.

It survived a move by anti-deal MLC Paul Harriss to instigate another parliamentary inquiry into how the agreement was working.

Protests by fringe green groups and continuing wood supply are among the challenges the deal faces.

Tasmanian Premier Lara Giddings welcomed the passage of the reserve order as she prepared to fly to Asia at the weekend to talk up the industry.

"This industry has been calling for certainty and the community has told us very clearly that they just want to move on," Ms Giddings said.

But state opposition leader Will Hodgman, who has promised to rip up the deal if elected next March, slammed the 9-5 vote.

"Despite the forest deal being rammed through parliament, Tasmanians will still get to have their say on the Labor-Green experiment, and this disastrous deal, on 7 September," he said.

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