One Launceston saw miller will receive $1 million to stay in the timber sector rather than leave the industry. In a record agreement struck under the Tasmanian Government's rejigged Regional Saw Miller Structural Adjustment Grants Program, Barbers Sawmill was to pocket AU$2,032,875 under the exit scheme set up by the previous Federal Labor government.

The State Government has since restructured the program with the Commonwealth's consent. Saw millers now have the option of keeping half their exit payout while remaining in operation reports ABC News.

Barbers Sawmill managing director Graham Barber told reporters on Tuesday he would use the AU$1 million to upgrade equipment and had secured a contract to receive sawlogs from Forestry Tasmania. "That'll involve upgrading our equipment, buildings, vehicles and allow us to buy equipment to sawmill smaller logs," he said.

Resources Minister Paul Harriss hoped up to eight other saw millers would follow Mr Barber's lead by opting to stay in operation.

Source: ABC News