A Supreme Court has ruled a contentious logging operation near a popular mountain biking town in Tasmania's north-east can resume after a legal challenge from environmentalists was dismissed.
In the Supreme Court in Launceston, Justice Robert Pearce dismissed environmental group Blue Derby Wild's case against the Forest Practices Authority and government-owned forestry body Sustainable Timbers Tasmania (STT).
Blue Derby Wild describes itself as a group of "local residents, mountain bike riders, bushwalkers, nature-based tourism operators, united in calling for the end of native forest logging in north-east Tasmania".
It had argued that it was unlawful that STT employees were also given independent oversight responsibilities of forest management plans and, therefore, had a conflict of interest in approving native forest logging.
The decision was handed down in less than five minutes, dismissing both the case and an injunction that was in place to prohibit logging in two coupes in the Kushka's forest near the town of Derby and the popular mountain biking tracks.
That injunction had been granted in April and was followed by a trial in May.
Blue Derby Wild coordinator Louise Morris said the result was disappointing but unsurprising.
"What the court has handed down is status quo, business as usual for native forest logging in Tasmania. The fox remains in charge of the henhouse," she said.
"I have to be honest, I'm not shocked … I was prepared for this.
"It's taken what should be a third party and rolled that third party's role into the same person that is writing the forest practices plan."
General manager of conservation and land management with STT Suzette Weeding said in a statement that the organisation welcomed the court outcome "as a vindication of the Tasmanian Forest Practices System and confirms the legality of forest operations in Tasmania's public production forests".
"Sustainable Timber Tasmania thanks its legal team and employees for their efforts, dedication and commitment to this successful outcome," her statement said.
Forestry Minister Felix Ellis said the verdict was "very positive news" and "provides sustainable native forest industry, both public and private, with the confidence it needs to continue day-to-day operations."
Legal appeal likely
Ms Morris would not confirm if Blue Derby Wild would lodge an appeal, but said "there's no conversation where it stops here".
"Our legal team are looking at the appeal grounds to the full court," she said.
"It's the story of campaigning in Tasmania. If you get a setback, it's just a court decision, and there are courts above this and we keep progressing it," she said.
'We're going to keep going with this … this is just the beginning."
The group is also pursuing an extension to the injunction, but that will have to go back before the court in coming weeks to be decided.
"STT has said the minute that injunction is lifted they'll be straight back into those forests to keep logging," Ms Morris said.
The decision comes after a petition to protect the area from native forest logging garnered 32,000 signatures in February, with tourism businesses and community members saying the practice goes against Tasmania's clean, green image.
And the peak body for the state's tourism industry ended an agreement between it and the forestry industry in November last year amid growing concerns about the role of the industry in tourist areas.
"Derby has completely changed its fortunes in the past eight years, thanks to nature-based tourism and, at the moment, that's being logged out from under us," Ms Morris said.