THE federal government is being accused of pulling the rug from under the Tasmanian forest peace deal by promising the cash regardless of the environmental gains.
Federal minister Julie Collins says $100 million which was to be paid once the agreement was finalised will now flow whether or not the state's upper house enables it.
In return for the cash, 500,000 hectares of forest was to be protected.
The money will go to around 30 job-creating projects in an attempt to diversify Tasmania's economy following the decline of the forestry industry.
It was to be the carrot used to ensure a reluctant Legislative Council rubber-stamped the historic deal between environmentalists and the timber industry that took nearly three years to negotiate.
The upper house passed legislation in April but with the proviso the agreement was shown to be workable by October.
But already one MLC has tabled a disallowance motion, adjourning the debate so the government can explain problems with the agreement's implementation, including a lack of wood supply.
Coalition leader Tony Abbott has signalled he will not stop the $100 million being spent, even though he and the state's Liberal opposition say they will tear up the agreement.
Greens leader Christine Milne reacted furiously to the apparent move by Labor to match Mr Abbott.
"Today we see federal Labor's final betrayal in their promise to ensure long-term forest conservation in Tasmania," Senator Milne said in a statement.
"As always the industry has had tens of millions poured into it while the state-based conservation outcomes hang in limbo."
The state Liberals described the ALP move as a back-down.
"Today's decision confirms that Labor has been trying to blackmail the community into accepting the forestry deal," spokesman Peter Gutwein said.
"Tasmania is entitled to its fair share of regional development funding and the funding should never have been made contingent on shutting down the forestry industry."
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