Timber harvesting and haulage contractors from Gippsland in Australia claim they face financial ruin because of the Victorian government’s failure to pay them compensation for leaving the logging industry.

An A$80m compensation package announced by the government last year promised to recompense all those who voluntarily left the logging industry. The deal included a licence buy back scheme – but 12 harvesting and six haulage contractors say they have yet to see any money.

A Gippsland Timber Harvesting Association spokesperson said contractors had been owed compensation since June, leaving many unable to pay staff or meet massive repayments on machinery.