Economy
Why? The contracts schemozzle … ?
Forestry Tasmania boss Bob Gordon and his boss, Deputy Premier Bryan Green
Forestry Tasmania Managing Director Bob Gordon demands the very highest standards when it comes to implementing conservation outcomes in his recent criticism of the IVG report.
But this is definitely a case of variable standards to suit the political objective.
Why doesn’t Bob demand the same very high standards when it comes to the commercial and financial management, and corporate governance of Forestry Tasmania?
These issues are surely more fundamental to the successful running of a business and an industry than a few more lines on the map of Tasmania.
They are definitely of fundamental importance to the future of the forest industry in this State.
Many independent peer reviews of Forestry Tasmania’s financial management over many years have been pretty scathing, including many reports by the State Auditor General.
Yet these reports are brushed aside or criticised as wrong by Mr Gordon and his political minders.
Since the GFC the forest industry in Tasmania has become commercially moribund.
Under such dire financial circumstances a normal business would be making serious efforts to cut costs and improve efficiencies.
Publicly-listed companies would be making regular announcements to the ASX regarding progress towards improving commercial performance.
But Forestry Tasmania chooses not to behave in this manner.
Why?
Why don’t Bob Gordon and the FT Board want to demonstrate to the Tasmanian community that they are good corporate and commercial managers?
Given the hundreds of millions of dollars of taxpayers money that has gone into Forestry Tasmania over the past 18 years “to build the forestry business” this is pretty outrageous behaviour.
The focus on high conservations standards while at the same time trashing the commercial performance and corporate governance of the organisation should be a major concern to the broader forest industry in this State.
Without a well run, profitable Government forest agency the forest industry must now look to private forest growers for its future.
Now where are those private forest growers?
• FORESTRY’S STEALTH CAMPAIGN TO LOCK UP THE FORESTS
Another Blatant Attempt to Undermine the IGA
Kim Booth MP
Greens Forestry Spokesperson
Monday, 28 May 2012
The Tasmanian Greens said today that Forestry Tasmania was attempting to undermine conservation goals of the Forests Intergovernmental Agreement by aggressively locking in and extending supply contracts in defiance of the both the IGA and whether the volumes are actually available.
During a Budget Estimates hearing today, Greens Forestry spokesperson Kim Booth MP queried the Minister about a Greens Right to Information Request which had revealed that Forestry had been pursuing a strategy of radically extending its pre-existing contracts, which is in breach of the terms of the IGA.
“Forestry Tasmania is attempting to lock up the forests with a strategy that involves signing lengthy supply contracts for wood that may not even exist, to prevent any areas going into reserves on the basis that contracts must be met,” Mr Booth said.
“Despite the IGA clearly stating that no new timber contracts can be signed until the conservation objectives are met, Forestry Tasmania has been aggressively signing contracts and the Minister was today unable to rule out that they are on new terms.”
“Minister Green admitted that this could force the State into the position of having to buy back some newly renegotiated supply contracts at great expense, confirming that this is a blatant attempt by Forestry Tasmania to hold the taxpayer to ransom.”
“Given that voluntary saw miller exit packages will soon be opened up, Forestry Tasmania has now locked the Minister into the outrageous position where public bailouts are required for contracts that should never have been signed in the first place.”
“The evidence for this is in mid 2011, just before the IGA was signed, the number of timber supply contracts held by Forestry Tasmania which exceeded 15 years was just one. By the end of the year, it was 12.”
“It is an obvious attempt by FT to undermine the ability to deliver conservation reserves by over-allocating timber supply even when there is no market demand for that volume.”
“At a time when public money is being made available for the buyout of sawlog quotas, specifically for the purpose of reducing the over allocation of native forests, Forestry Tasmania is trying to block this inevitable change by locking them up for logging.”
“Forestry Tasmania has seen the writing on the wall, and it’s clear that they plan to either sabotage the IGA or if necessary the Minister to achieve their ends.”
“Forestry Tasmania has gone rogue and this wilful act to undermine government policy, is just another example of why they should be wound up,” Mr Booth said.
• Examiner: Sawmillers with renewed contracts eligible for exit funds
LORETTA JOHNSTON
28 May, 2012 12:47 PM
SAWMILLERS who had their wood supply contracts with Forestry Tasmania renewed as recently as last year are eligible for a government exit package, it was revealed during budget estimates hearings this morning.
The scrutiny committee heard that 22 eucalypt saw log contracts had been extended, by an average of 9.2 years.
Resources Minister Bryan Green Green said 12 of these contracts were for 15 years or more.
Eleven of these 15 year contracts were renewed between June and December last year.
The renewals have come at a time when environmental groups and industry are negotiating a restructure of the state’s forest industry, including an increase in forest reserves.
Tasmanian Greens forests spokesman Kim Booth asked Mr Green if the sawmillers who had their contracts extended would be eligible to apply for public funds if they chose to exit the industry.
”Yes,” Mr Green said.
He said he hoped no sawmill would have the need to apply for exit funds.